It’s been said that if you remove one leg from a four-legged stool, the whole thing collapses. At Johnson Consulting Group, we believe that same principle applies to running a successful funeral business. We call these the Four Pillars of Success: Customer Service, Workplace, Marketplace, and Financials.
Over the past 30 years, we’ve reviewed thousands of funeral businesses. Without fail, the most successful businesses—the ones with the strongest succession plans and highest valuations—are those that excel in these four categories. Let’s break them down.
1. Customer Service
Customer service is the heart of our profession. We’re in the business of serving families during one of the most personal and emotional times of their lives. Because of that, delivering an exceptional customer experience—what we call CX Culture—is absolutely critical.
This means evaluating the full customer journey, from the first phone call to the follow-up after services. Where are the hand-off points? Where could something fall through the cracks? Have these conversations regularly with your team. The goal is a culture where exceptional service is not just encouraged—it’s expected.
Measuring that experience is just as important. We recommend surveying every single family you serve and asking for online reviews. These responses give us invaluable insights—and with over 135,100 survey responses collected to date, we know that referrals and word-of-mouth remain the top reasons why families choose a funeral home. Take that seriously.
2. Workplace
The workplace has changed—dramatically. COVID reshaped expectations around flexibility, compensation, and culture. Today’s employees want more than a paycheck; they want to feel part of something meaningful.
Creating a workplace of choice starts with structure and support: a formal onboarding process, regular check-ins, consistent team meetings, and public recognition for a job well done. These practices build unity and reinforce funeral home customer experience culture you’re working hard to maintain.
And when it comes to compensation, today’s market demands a thoughtful, goal-driven approach. An incentive compensation plan aligned with business goals is one of the most effective tools you can implement to reward the right behaviors and outcomes.
3. Marketplace
Are you present in your community? Do people know who you are before they need your services?
Marketplace presence is more than just signage—it’s active engagement. From lunch-and-learn events to a strong preneed program, your visibility is key. As a general rule, 30% of your at-need cases should come from preneeds already on the books. That means you must continually replenish those with new contracts—ideally, writing two preneeds for every one that “we take out of the vault”.
Funeral service is referral-driven. The more active you are in your community, the more relationships you build, and the more top-of-mind your brand becomes. Encourage your staff to participate too—they likely have contacts and connections you haven’t tapped into yet.
4. Financials
Here’s the truth: Poor financials lead to poor valuations. We see it all the time.
Clear, consistent, and timely financial reporting is essential to operating a strong business. This means having a robust case management system that integrates smoothly with your accounting software, ensuring that reconciliations are done on time and accurately.
Consistency is key. Whether your numbers are consistently right or wrong—good or bad—if they’re consistent, you can make informed decisions. If they’re messy or inconsistent, you’re flying blind. Too much summary in your reporting? You’re missing the insights. Drill down into the data so it works for you.
We also recommend:
- Using an industry-specific chart of accounts
- Running a 13-week cash flow analysis
- Maintaining a healthy cash reserve for working capital and growth
- Creating detailed budgets that tie directly to pricing strategies and operational execution
From the thousands of funeral homes we’ve worked with, the pattern is clear: Strong financials unlock better decisions, which ultimately drive better results.
In Conclusion
At Johnson Consulting Group, we consult, survey, manage financials, and handle thousands of valuations and transactions across the funeral profession. Our vast experience and historical data point to one clear conclusion:
If you focus on mastering these Four Pillars—Customer Service, Workplace, Marketplace, and Financials—you’ll build a stronger, more valuable, and more future-ready funeral business.
Success isn’t accidental. It’s built—one pillar at a time.
BUILD BETTER FAMILY RELATIONSHIPS