7 KPIs Every Funeral Home Should Track to Stay Profitable

Running a funeral home isn’t like running any other type of business. You’re balancing compassion with the realities of keeping the lights on, paying staff, and making sure families get the care they deserve. It’s not always easy to think in numbers when your day-to-day is filled with people, emotions, and service. But here’s the thing: without a clear picture of how your funeral home is performing, it’s hard to know whether you’re growing, standing still, or slowly losing ground. 

That’s where KPIs come in. KPI stands for Key Performance Indicator, but don’t let the jargon put you off. Think of them as the most important numbers on your dashboard, the ones that tell you if your business is healthy and heading in the right direction. Just like checking your car’s fuel gauge before a long trip, tracking a few essential KPIs helps you make smarter decisions and avoid unpleasant surprises down the road.

In this article, we’ll walk through seven practical KPIs that every funeral home can benefit from monitoring. Clear, actionable measures that help you see where you’re strong and where you might need a little course correction. 

Operational KPIs 

Why operations matter 

The heartbeat of a funeral home is its daily operations. How smoothly your team runs services, manages schedules, and balances resources has a direct impact on both families and your bottom line. If things are running late or resources are stretched too thin, families notice, and so do your books. 

KPIs to watch 

Here are a couple of operational KPIs that can give you clarity: 

• Average service time 
  How long does it typically take from the first call to the completion of a service? If this number starts creeping upward, it may signal bottlenecks in preparation, logistics, or communication. 
  
• Staff utilization rate 
  Are your directors and support staff being scheduled in a way that keeps workloads fair and efficient? A simple ratio of scheduled hours vs. actual service hours can reveal if some team members are overloaded while others are underused. 
• Resource availability 
  This can be as straightforward as tracking chapel bookings, vehicle usage, or inventory for essentials like caskets and urns. Having a measure in place prevents last-minute scrambles that add stress for your team and families alike. 

The takeaway 

Operational KPIs help ensure every service runs with dignity and care, without overburdening your staff. Think of them as gentle signals that let you know when it’s time to adjust schedules, add support, or rethink how daily tasks are managed. 

With Funeral 365’s built-in scheduling and resource management, you can keep track of service times, staff availability, and even chapel or vehicle usage, so bottlenecks are spotted before they cause stress for families. 

Financial KPIs 

Why the financial side matters 

Talking about money in the context of funeral services can feel uncomfortable, but it’s a reality every director has to face. A funeral home is a business that needs to stay financially healthy to continue supporting families. Tracking financial KPIs helps you see whether your pricing, collections, and overall cash flow are keeping you sustainable. 

KPIs to track 

• Revenue per service 
  This shows the average income generated from each funeral or cremation service. It helps you spot trends, are families choosing more personalized options, or is revenue declining because of shifts toward simpler services? 
• Profit margin 
  Essentially, how much money is left after covering expenses. Even a small change in costs (like rising supplier prices or overtime hours) can impact profitability. Keeping an eye on margins ensures you’re not simply busy, but actually financially secure. 
• Accounts receivable 
  In plain terms: how much money is still owed to you. If invoices sit unpaid for too long, it creates cash flow stress. A high receivables balance is a sign it may be time to revisit payment processes or offer clearer terms to families. 

The takeaway 

Financial KPIs are less about chasing profits and more about ensuring your funeral home has the stability to continue serving with compassion. They provide the clarity to make informed decisions, whether it’s adjusting service packages, reviewing costs, or improving billing practices. 

Because Funeral 365 centralizes accounting, invoicing, and expenses, financial KPIs like revenue per service, profit margins, and receivables are always visible in one place. 

Customer & Community KPIs 

Why community perception matters 

Funeral service is deeply personal. Families remember not only how a service was conducted, but how they felt cared for during the process. That experience shapes your reputation, which in turn influences referrals, word-of-mouth, and even online reviews. In many communities, reputation is the deciding factor when families choose a funeral home. 

KPIs to keep an eye on 

• Family satisfaction scores 
  Some funeral homes use short surveys after services to gauge family experiences. Even a simple “How likely are you to recommend us?” can reveal valuable insights. 
• Referral rates (Nice to have) 
  How many of your families come through recommendations from others? A steady or growing referral rate signals trust, while a decline may point to areas needing attention. 
• Online reviews and ratings (Nice to have) 
  Today, families often check Google, Facebook, or funeral-specific directories before making a decision. Monitoring your average rating and review volume gives you a clear picture of your digital reputation. 

The takeaway 

Customer and community KPIs remind you that your work goes beyond numbers. They measure the strength of trust, compassion, and word-of-mouth, the very things that make a funeral home thrive for generations. 

Funeral 365 records every family interaction and referral source, making it easier to see patterns in satisfaction, keep track of referrals, and maintain your reputation both offline and online. 

Future-Oriented KPIs 

Why looking ahead matters 

Day-to-day operations and finances keep your funeral home running, but future-focused KPIs help ensure it continues to grow. These measures give you visibility into long-term stability, so you’re not only reacting to what’s happening now but preparing for what’s coming next. 

KPIs to consider 

• Pre-need contracts 
  Tracking how many families are arranging services in advance offers a clear indicator of future business. A steady flow of pre-need contracts means more predictable revenue and stronger relationships with families. 
• Market share or service volume growth 
  How many services are you performing compared to previous years? Growth can signal stronger community presence, while declines may prompt questions about competition or shifting preferences. 
• Community engagement metrics 
  This might include attendance at open houses, participation in grief support programs, or engagement with your social media presence. These activities strengthen your position as a trusted community partner, not just a service provider. 

The takeaway 

Future-oriented KPIs are like planting seeds. They may not yield immediate results, but they create stability and predictability. By monitoring them, funeral directors can balance compassion today with resilience tomorrow. 

From managing pre-need contracts to reviewing year-over-year service volumes, Funeral 365 provides the data you need to prepare for the future while continuing to serve families today. 

How to Start Tracking KPIs 

Keep it simple at first 

The idea of “tracking KPIs” can sound like a mountain of spreadsheets, but it doesn’t have to be. The goal isn’t to measure everything, it’s to measure the right things. Start small, maybe with just two or three KPIs from the categories we’ve covered. 

Practical steps 

• Pick what matters most to you right now 
  For example, if cash flow is your biggest concern, focus on accounts receivable and profit margins first.
• Use tools you already have
  You might already be using accounting software, calendars, or even basic spreadsheets to keep track of numbers, and that’s a good start. The challenge is that these tools often sit in silos, which makes it hard to get a full picture of your funeral home’s performance. That’s why many directors eventually turn to more complete solutions, like Funeral 365, that bring operations, finances, and customer information together in one place.
• Review regularly 
  A KPI only helps if you check it. Set aside time monthly or quarterly to look at your numbers and spot patterns. 

Think progress, not perfection 

Tracking KPIs is less about creating a perfect dashboard and more about building awareness. Over time, you’ll naturally add new measures as your funeral home grows. The key is to make tracking part of your rhythm, not a once-a-year headache. 

Conclusion 

Running a funeral home means carrying a lot of responsibility, families count on you during some of the hardest moments of their lives. But behind the compassion and service, there’s still a business that needs to stay healthy if it’s going to continue supporting those families. That’s where KPIs earn their place: they give you clarity, direction, and confidence in your decisions. 

The good news? You don’t need to track dozens of numbers to see results. Even a handful of well-chosen KPIs (like service times, receivables, or family satisfaction) can reveal where your strengths are and where there’s room to improve. Think of them as guideposts rather than strict rules: they help you stay on course without losing sight of the people you serve. 

And here’s where Funeral 365 can help. By bringing your operations, finances, and contracts together in one system, it makes tracking these KPIs far easier. Instead of juggling spreadsheets and disconnected tools, you get a clear, centralized view of your funeral home’s performance. 

If you’re wondering how these KPIs might look for your funeral home specifically, our Funeral 365 experts are always happy to share insights. Sometimes a short conversation can spark ideas that make tracking and improving performance much easier.