The online funeral industry has suddenly become crowded. In late 1999 there were two major companies, Plan4ever and HeavenlyDoor.com (the only publicly traded funeral site), competing to be the definitive portal. But last month Arrangeonline.com launched. And Funeral.com is scheduled to unveil its site Nov. 30.
While these sites seek to offer a full range of services and products, many companies specialize in grave sites, caskets and Webcasting of funerals. The firms are aiming for a piece of a growing business. U.S. deaths are expected to rise from 2.3 million in 1998 to 3 million by 2020. Still, it’s unclear how the Net will affect an industry where brick-and-mortar undertakers control the market.
A new business model is emerging: Net companies want to be allied with funeral homes, given their large market share. The situation is similar to the auto industry and its relationship with dealers. The Web can be used to reduce the time a customer spends at a brick-and-mortar store, but ultimately the deal needs to be closed in person.
Arrangeonline asks customers to check off a list of services they want. The company then forwards the information to funeral homes, which call the customers to iron out details. (Arrangeonline is a subsidiary of Continental Computer, which has sold software to nearly a quarter of the nation’s 22,000 funeral homes.) Officials with Plan-4ever, HeavenlyDoor and Funeral.com say they will have similar services.
Industry pioneer HeavenlyDoor began by selling online obituaries. While it has expanded its offerings, it remains unprofitable. The company is now testing a system that lets consumers buy prearranged funerals online through a funeral home. Plan4-ever also appears to be pursuing a brick-and-click strategy, opting to work with the large chains that own one fifth of the nation’s funeral homes.
Maynard took advantage of the free obituary at Plan4ever, but his decision to buy his father’s urn from another site underscores the challenge funeral portals face. It’s hard to keep customers all to yourself. “Every step of the way, we controlled the process,” Maynard says. In the business of death, that may be one solace the Web can offer to clients.
