Carriage Services

DIGITAL DEATHCARE INDUSTRY INNOVATIONS

DIRECTING CHANGE IN THE FUNERAL PROFESSION

As deathcare undergoes a technological transformation, Carriage Services’ coFounder, CEO, and Chairman of the Board, Mel Payne gives us an insight into an industry where compassion is key

Writer:

Rachel Carr | Project Manager: Felix Revell

The unavoidable business of death is one of society’s least discussed topics. Nevertheless, the deathcare industry has developed over time into one of the most successful markets.

At some point, everyone will rely on the services of a funeral home, but the emotional experience attached to it needs a compassionate and sensitive approach - an attribute which Carriage Services specializes in.

“How you take care of a family, how you make them feel, and how you help them celebrate a loved one has been, and will continue to be, the most important focus of our profession,” opens Mel Payne, co-Founder, CEO, and Chairman of the Board of Carriage Services.

Headquartered in Houston, Texas, the organization combines tradition with digitization as a result of the COVID19 pandemic, which was a time for innovation across all sectors.

Historically speaking, the deathcare industry has been around for over a century, ever since soldiers’ bodies needed embalming in order to preserve them for the long and arduous journey home from the American Civil War.

The process started to gain traction after Abraham Lincoln’s funeral procession in 1865; the public were impressed when they viewed the well-preserved body, realizing the embalming process allowed more time for customs to enter the mourning period.

However, the idea of an actual ceremony using the services of a funeral home did not become widespread until the 20th century. This is when the industry experienced exponential growth between the years 1865 and 1920, with almost 25,000 funeral homes established in that time frame.

Up until then, funerals were organized by family members, friends, and neighbors, when tradition dictated that burials take place on family property. As communities became larger and more settled, cemeteries began to be utilized.

Firstly, could you briefly introduce Homesteaders Life Company (Homesteaders)?

Homesteaders is a national leader in providing products and services to promote and support advanced funeral planning and funding for end-of-life expenses. Since issuing our first policy in 1906, Homesteaders has emerged as the trusted name in the funeral profession because of the stability, security and integrity of our preneed products. We are a mutual company, owned by our policy holders, so we are accountable to the families we serve. Today, Homesteaders serves about 3,000 funeral homes across the country. We employ more than 250 employees nationally, with about 75 percent working out of our home office in West Des Moines, Iowa. Many of our team members are industryleading account executives in the field, so we have a very deep understanding of the day-to-day realities of the work. We pride ourselves on our positive culture and are consistently recognized as a Top US Workplace.

Homesteaders has been operating for almost 120 years. Can you elaborate on the company’s history and the industry expertise that stems from this?

Homesteaders traces our roots back to the early 1900s when very few families had breathing room for large expenses. The death

of a loved one could cripple their financial position. As John E. Paul assisted families in his community in Des Moines, Iowa, he realized the financial disruption caused by death was largely due to the unexpected cost of funeral and burial services. So, in the fall of 1905, he proposed a solution: The Homesteaders, a small, fraternal benefit society dedicated to helping families plan and pay for final expenses. Under John’s leadership, The Homesteaders issued Policy Certificate Number One on 24th February, 1906. By the end of that year, more than 500 families had secured end-of-life funding.

As Homesteaders enters our 118th year of providing secure, reliable funeral funding, we operate at the intersection of the funeral profession, the insurance industry and the consumer market. We are focused on understanding how each of these areas influences and impacts the consumer’s end-of-life experience.

What differentiates Homesteaders from the competition?

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Since Homesteaders is owned by its policyholders, we are not accountable to shareholders but to the families we serve. We are a monoline company, solely operating in the end-of-life space, so we’re unique in our ability to focus on the needs of funeral providers without having to split our resources between competing business units.

Homesteaders has a competitive product portfolio, backed by a secure and conservative investment strategy and more than a century of financial strength and stability. We offer comprehensive marketing and operational support to help funeral providers connect with more families than ever before, including everything from lead generation and text-based aftercare to appointment setting and online funeral sales, all centered around EnGauge, a robust customer relationship management system (CRM) custombuilt through Salesforce.

Homesteaders also partners with more than 40 of the profession’s leading marketing organizations, so our customers can pick the firm that is the best fit for their business. When you combine all of that with loyalty programs like PartnerPoints® and Casket Price Protection as well as our new Funeral Home Conventional Business loan program, you get a comprehensive offering that is difficult for any competitor to match.

How have innovative investments and technology partnerships impacted Homesteaders and its customers?

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We have made significant investments in the last few years in emerging new technology that has helped funeral home customers and agents respond to a shift in the way consumers shop for and purchase their funeral plans. We introduced eFuneral, a unique digital sales and lead generation platform that empowered funeral homes to attract, convert and close preneed and at-need sales. We partnered with insurtech companies like Benekiva to streamline our claims submission process.

Additional investments like our award-winning text-based aftercare program and our in-depth consumer analytics engine

have provided funeral professionals with tools to help them better serve families without increasing headcount.

How did Homesteaders adjust to the disruption caused by the COVID-19 pandemic, and how has this adaptation made the company stronger than ever today?

Much of Homesteaders’ response to the COVID-19 pandemic mirrored what you saw at employers across the country, but we also faced challenges unique to our business model. Social distancing requirements prevented our agents and funeral home customers from helping families plan and host funeral services in person, yet the rising COVID-19 death toll drove up demand while simultaneously causing more consumers to think about end-of-life concerns.

Despite the challenges of the COVID-19 pandemic, we maintained the highest degree of operational standards while sustaining forward momentum on key initiatives that will help us achieve our long-term goal of helping funeral homes reach more families than ever before, and positioning Homesteaders as a leading innovator in the preneed space.

Looking ahead, what are the company’s key priorities for the coming year?

We are excited to see many of the investments we have made in the last few years begin to bear fruit. New technology offerings and partnerships have positioned Homesteaders as a marketleading innovator in the funeral profession. Additional investments in the consumer space, including the most comprehensive and detailed market research the profession has seen in decades, have made our partners and customers more connected to consumers than ever before.

As we look at the year ahead, our team is focused on developing even deeper connections with consumers on behalf of our funeral home customers and agents through thoughtful and strategic investments in digital tools, grief support and more, enabling us to provide even better service.

Helping people design a better farewell, benefitting those they love.

The oldest funeral home in the US dates back to 1759 in Williamsburg, Virginia, and was run by cabinet maker Anthony Hay, who made coffins as a sideline. Before funerals became an industry, which is now worth $20 billion annually, women prepared the deceased up until the mid-1800s.

However, it was Abraham Lincoln’s public funeral that prompted the population to crave the same treatment. Consequently, death as a service caught on, with many professions entering the industry and funeral homes eventually becoming the businesses and organizations we see today.

INNOVATION AND CELEBRATION

There is a rich history of funeral homes and traditions. Today, funeral directors do much of the same as they did 100 years ago, but advances in technology are beginning to change the profession, as Payne will testify.

It was Payne’s own family tragedy, combined with an entrepreneurial spirit, that inspired him to start a business in the funeral home and cemetery industry. In order to honor the memory of his nephew, Carriage Services was incepted in 1991.

“I experienced the incredible impact that the funeral profession could have on a family and an individual. Following my nephew’s service, I was so touched by the noble work of the team at the funeral home, that I was drawn to the profession,” he shares.

After serving in Vietnam, Payne’s career path led him into the finance sector, subsequently gaining a degree in chemical engineering and earning an MBA.

Carriage Services has always maintained its core principles and industry standards which have been around for decades - for example, service always comes first. In fact, the message is an identifiable fixture of the company.

Although technology is increasingly assisting the process, and making the arrangements more seamless for families today as opposed to 30+ years ago, the sensitive nature of the industry still requires a personal and human touch.

The tools that are now available can help focus on the celebration of life and achieve unique services tailored to the individual being commemorated. However, Carriage Services still values the compassionate attitude its employees bring to the business.

It is an ongoing balance between technology and tradition. As the COVID-19 pandemic was a catalyst for innovation, the industry is undergoing a huge transformation.

“Within our own company, we have grown to a size where we are able to offer more support than ever to the leaders of our business through the very same technology. From marketing help to service, and guest experience ideas, the resources that were unavailable when the company was founded combine to create a first-class and memorable service for our families today,” assures Payne.

As the company is deeply committed to delivering an unparalleled customer experience through creativity and innovation, it has designed a purpose-driven customer journey that involves digital transformation.

“The customer-centric approach is at the heart of Carriage Services, and we are building all our processes around it. We leverage digital transformation principles and apply them to the customer journey, and it consciously revolves around wowing our clients.”

Whether it is through online transactions, phone conversations, or face-to-face engagements, the goal is to exceed the expectations of the families at every touchpoint along their personalized journey.

“From our marketing efforts to the

funeral service itself, we thoughtfully curate an elevated experience empowered by digital mediums. While we are currently in the process of implementing this new customercentric approach, we estimate full adoption will be achieved by 2024,” reveals Payne.

“We are confident that this transformation will solidify our position and create a service excellence moat around each of our businesses.”

With technology on the rise, the funeral industry is likely to undergo many changes over the next few years. From digital death management, to recording memories, innovators are disrupting and transforming an industry which is so quietly fundamental to society, and whose traditions have remained unchanged for decades.

Those same traditions are set continue, albeit in a new and more technologically advanced way.

COMMITTED TO TRAINING

As death is a delicate subject, the deathcare industry needs a tactful type of employee, and staff and partners must be selected accordingly. Not only does the nature of the business require the correct attributes, but investment in training and development is also of the utmost importance.

Carriage Services takes employment and ongoing training seriously as they play a crucial role in delivering exceptional care to families during difficult times. Therefore, the company places a high value on staff and partners alike.

“We look for key attributes that align with our values and commitment to excellence. Our staff must have genuine compassion and empathy towards the families we serve. This includes being able to provide emotional support, understanding, and comfort during a difficult and sensitive time,” reveals Payne.

Alongside compassion and empathy, sit professionalism and integrity. Individuals must maintain confidentiality, always adhere to ethical standards, and conduct themselves in a professional and respectful manner – in all interactions.

“Effective communication is critical; our staff and partners must possess excellent verbal and written communication skills to convey information effectively, including listening to needs and conveying instructions clearly,” he adds.

There is a code of conduct when dealing with heightened emotions and expectations. The funeral home has an ethical obligation to fulfill and standards to uphold. Moreover, a certain etiquette, professionalism, and courtesy are a given, as well as other skill sets.

Attention to detail and strong organizational skills are essential in ensuring that all funeral arrangements and services are carried out precisely and carefully.

“From coordinating logistics to managing paperwork, our staff and partners must have excellent organizational skills to ensure smooth operations,” Payne notes.

The funeral industry is a dynamic field, and it needs people who can adapt and thrive in changing circumstances. This includes flexibility with work schedules, responding to last minute changes, and being able to remain composed in unexpected situations.

As with most industries, being a team player is vital as collaborative work provides the best outcomes for the recently bereaved. As Payne informs us, Carriage Services seeks people who “support and assist their colleagues and contribute positively to the overall work environment.”

Moreover, funeral services are continuing to evolve since the COVID-19 pandemic. Therefore, a growth mindset and a commitment to ongoing learning and professional development are key attributes.

There for Life’s Journey

As a financially strong company with a focus on Preneed, how do these two factors make NGL unique?

Cameron Black, Vice President of Sales and Business Development (CB): Our purpose is to help people face life’s financial challenges with confidence, dignity and grace. We continue to be one of the most highly rated companies in the industry, rated A (Excellent) by AM Best, the world’s oldest and most authoritative insurance rating information source. This reflects our focus on financial stability meaning our partners and policyholders can be confident in

Cameron Black - Vice President

NGL’s reliability and dependability for the longer term. Our excellent customer service and partnership mentality allows us to be one of the best Preneed partners in the profession by providing flexible

Celebrating a milestone in the Preneed insurance industry, National Guardian Life Insurance Company (NGL) is committed to collaboration and poised for growth.

products, personalized service and tools needed to better help those that we work with focus on their families.

How is NGL celebrating 25 years in Preneed, and what do the next 25 years look like?

CB: Celebrating 25 years in the Preneed space is an important milestone for NGL. With more than a century of insurance industry experience, we are proud to be there for families when they need it. This anniversary also provides an opportunity to reflect on our achievements and look towards the future. We plan on evolving and growing with our partners as the funeral profession changes with trends and technology. We look forward to the next 25 years as we continue partnering with the very best in this profession. Additionally, we are committed to developing the best products, demonstrating high-quality customer service and maintaining a financial position that will allow us to be a continued leader in the industry.

In what ways does NGL’s wholesale distribution model give partners more control over the products their agents sell?

CB: We understand that one size cannot fit all, and we understand that as an insurance carrier we should be focused on being the best carrier for all those we work with. Our expertise allows us to serve partners through connection, collaboration and compassion. Our valued partners know that when they choose to work with us they will receive a true partner carrier that is dedicated to serving and growing their business.

What is the ideal type of partner for NGL and how can you help them grow?

CB: When we partner with organizations, we look for mission statements and values that align with ours. We believe that when we have that same mindset, strong partnerships and long term relationships are formed. We look for partners wanting a carrier that will give them a valuable product at a great service level which allows them to focus on what they do best - providing top-notch service to families. We hope to be an extension of their business that encourages growth and focuses on the future.

How is NGL streamlining its business focus to further enhance its Preneed line of business?

CB: NGL has always had a strong commitment to our Preneed partners and the funeral profession, including our focus on providing dedicated service and valuable product offerings. Selling certain blocks of business further strengthened our financial position and allowed us to simplify and streamline processes which provided an opportunity to enhance our support and customer experience for our valued policyholders, partners, funeral homes and agents.

Your future is secure

Keeping updated on industry trends, attending training programs, and seeking opportunities for selfimprovement are all activities that staff and partners should be prepared to do.

“By seeking staff and partners who possess these attributes, we ensure that our team is well-equipped enough to provide exceptional service to our families with compassion, professionalism, and excellence.

“The collective effort of our staff and partners makes our portfolio of businesses truly unique, positioned for high performance, and in full alignment with our vision and mission of being the best,” he affirms.

SETTING THE MODEL STANDARD

Carriage Services owns and operates 205 funeral homes and cemeteries in 26 states, employing over 2,500 dedicated staff. Although the company is growing organically with the death rate, the standard of care and dedicated nature of the staff remains the same.

“I have always defined the organization as a highperformance culture company that just happens to be in the deathcare space. We have a Darwinian culture where only the best of the best succeeds,” Payne proudly states.

CREATIVE SOLUTIONS WITH CARRIAGE SERVICES

To adapt to the ever-changing post-COVID-19 landscape, the company’s entrepreneurial and agile nature allowed the managing partners to pivot and adapt to the different and difficult circumstances. By implementing certain initiatives, it enabled meaningful services to continue in a safe and compassionate manner.

• Virtual Funeral Services: Live streaming allowed families to remotely participate in funeral services and memorials, enabling them to honor loved ones while adhering to social distancing and restrictions on gatherings.

• Drive-Through Visitations: The bereaved paid their respects from the safety of their vehicle. The creative solution allowed families to grieve and express condolences while minimizing contact.

• Online Arrangements: Enhanced capabilities afforded families to plan remotely through virtual consultations and online platforms, providing a convenient and safe way to organize the funeral without visiting a physical location.

• Personalized Memorialization: Virtual memorial walls, digital guest books, and online tribute pages, allowed families to share comforting information about their loved ones online.

• Community Support: Donations to organizations and frontline workers by providing free or discounted services to those in the community affected by the COVID-19 pandemic, also offering support to families facing financial challenges.

Creativity and innovation helped the company adapt to continue providing compassionate and meaningful funeral services, all while prioritizing the health and safety of the staff and customers it serves.

“I always believed, and have since proved, that when you find the “right who” and place them in the right seat, you should turn them loose through empowerment. The results are a testament to the high performing power of the Carriage Services operating model.”

The organization differentiates itself from other companies in the sector by offering opportunities and experiences to partners, staff and clientele, therefore putting people at the core of its values.

“We believe that our staff, partners and clientele are the fuel that powers our high-performance engine, and we prioritize their needs and experiences above all else.

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“Our unique approach is reflected in our flywheel component of “first who, then what”, which emphasizes the importance of our people in driving our success,” he elaborates.

The company’s commitment to people is reinforced by its decentralized model, where trust and empowerment are fundamental principles.

“We believe in fostering a culture of innovation and creativity, which sets us apart from other companies in the deathcare industry.

“Our Standards Operating Model and Strategic Acquisition Framework have been thoughtfully and strategically designed to support our high-performance culture company, positioning us as a unique and differentiating force in the industry,” Payne says enthusiastically.

The decentralized approach that the company takes is instrumental in enabling this high performance. The model is built on finding the “right who” to lead a business and then empowering that leader to make the best decisions, including selecting most vendors, for their business.

“Due to our size and scale, we are able to present cost-effective options for our managing partners as it relates to certain products and services.”

DEATHCARE DATA

2.4 MILLION funerals held in the US each year

$7,000 - $12,000 – average cost of funeral with a burial

$6,000 - $7,000 – average cost of funeral with cremation

19,322 funeral homes in the US

20,272 cemeteries in the US (not accounting for pet cemeteries, hidden graveyards, or natural burial sites used by Native Americans)

“WE BELIEVE THAT OUR STAFF, PARTNERS AND CLIENTELE ARE THE FUEL THAT POWERS OUR HIGH-PERFORMANCE ENGINE, AND WE PRIORITIZE THEIR NEEDS AND EXPERIENCES ABOVE ALL ELSE”

– MEL PAYNE, CO-FOUNDER, CEO, AND CHAIRMAN OF THE BOARD, CARRIAGE SERVICES

to the Memorialization Industry

As a leader in the funeral and cemetery industries, Matthews Memorialization is dedicated to helping our customers grow and thrive in today’s changing marketplace, and helping the families they serve move from grieving to remembrance. We offer innovative products of superior craftsmanship and strategic business solutions that meet the needs of every family, whether they choose burial or cremation.

www.matw.com

This people-centric approach, combined with innovative ideas and creative concepts, sets Carriage Services apart from other companies in the sector. Its commitment to staff, partners and clientele makes it unique, and enables it to deliver exceptional opportunities and experiences that surpass industry standards.

FUTURE FUNERAL PROCESSES

Digital integration, automation, and seamless processes are at the forefront of transforming how Carriage Services assists grieving families with finalizing arrangements, ensuring services are conducted in an exceptional manner.

As Carriage Services is committed to excellence and delivering a personalized experience to the clientele it serves, it is working hard on the development of a cutting-edge system called Trinity.

“Trinity is our new enterprise resource planning (ERP) system currently in development and it will replace our existing contract platform.

“Powered by a first-in-class family portal and front-facing engagement tool, Trinity will enable our funeral directors to deliver an elevated service experience like never before,” Payne elaborates.

Trinity will streamline its processes, enhance communication, and provide

an unparalleled service to the families who put their trust in Carriage Services at their time of need.

“The transformation is a testament to our dedication to innovation and continuous improvement.

“We are excited about the positive impact Trinity will have on our ability to serve families with the utmost care and professionalism. We look forward to sharing more about this exciting development in the near future,” he explains.

ERP is the latest innovation in funeral planning and the software is designed for organizations to manage day-to-day planning, while driving agility and success.

Eagle offers the highest levels of craftsmanship and manufactures everything from small monuments to large private mausoleums.

As one of the top producers in the country, Eagle Granite owns and operates quarries from which we get the beautiful Blue Ridge granite (medium blue/gray granite), Eagle Blue granite (a dark blue/gray granite) and Pink Pearl granite (a larger grained pink granite). In addition, Eagle Granite inventories 13 additional granite colors in block form. The company’s five production facilities totaling over 200,000 sq. ft. are able to take the raw granite material and finish it into a memorial made to the customer’s specifications.

We continue to look for innovative ways to improve and expand our operations for our customers!

Learn more

Helping families honor the lives of those they love.® Batesville.com

For more than a century, Batesville ® has worked with licensed funeral professionals to provide products and services that help families remember loved ones and begin the healing journey.

©2023 Batesville Services, LLC

Ideal has provided professional funeral services and products for the WNY area since 1953

Our founder, Borden Tilley, started the company from his home garage in Williamsville, NY. Over 69 years later located in Pembroke, NY, Ideal Burial Vault is still family owned and operated by Borden’s son and grandson, George and Greg. They continue to deliver the same quality service and professionalism that Borden delivered so many years ago to the Buffalo/WNY area and the Rochester/Finger Lakes area.

Funeral Service earlier this year, are testament to the selective approach of partnering with the remaining larger businesses.

Embarking on advances in technology are only part of the company’s plans for this year, with other key priorities including more acquisitions. Two funeral homes are already in the Carriage Services fold, with another one in the pipeline.

As a consolidation company, Carriage Services prides itself on seeking strategic partnerships, and is committed to maintaining a disciplined approach to acquisitions. It ensures each partnership aligns with its goals and adds value to the organization.

“Our acquisition framework is highly selective, as we diligently identify premium businesses in growing strategic markets that fit our Carriage operating model,” Payne informs us.

With a vision for excellence, the framework allows careful evaluation of each acquisition opportunity based on its potential to enhance the company portfolio and drive positive financial performance.

The latest acquisitions of Greenlawn Funeral Homes, Cemeteries and Cremations, and Wood Family

“Our future is simply not in growth for the sake of it but rather on being the best capital allocators and value creators for our stakeholders. We strive to continually elevate our performance and deliver exceptional results,” concludes Payne.

Whatever is next for Carriage Services, it is guaranteed that care, compassion, and clientele will remain at the fore.

“WE BELIEVE IN FOSTERING A CULTURE OF INNOVATION AND CREATIVITY, WHICH SETS US APART FROM OTHER COMPANIES IN THE DEATHCARE INDUSTRY”

– MEL PAYNE, CO-FOUNDER, CEO, AND CHAIRMAN OF THE BOARD, CARRIAGE SERVICES