Super - the big easy

Published 20 March 2017

The superannuation industry continues to experience strong growth and is currently worth over $2 trillion, up 7.5% on the previous year.

However, the number of member accounts has decreased from 32 million in 2010 to 28 million in 2016. This decline is placing increasing pressure on many super funds to improve member retention and has shifted the focus among funds from product producers to service providers.

With the shift to becoming service providers comes an increased focus on the member experience.

The question then comes from the super funds… what do we do?

CoreData recently completed a piece of research on Member Experience in superannuation and was once again reminded of the need to get the basics right; help them, make it easy and show them respect.

The chart below shows the perceived importance of a number of service-related aspects versus funds’ performance in these aspects from a members’ perspective. This chart is for the industry as a whole and not surprisingly, the top three to four attributes become even more important as a person approaches retirement.

The concept of “Help” as a broader member service strategy can be very powerful. It means that every contact someone has with a fund can be seen as an opportunity – an opportunity to take ownership of the members’ problem, find them a solution and build engagement and trust with the member.

Trust and respect is also reflected in the high importance that members place on the use of their personal information. It is a given, but it is an important reminder that they have trusted their super fund with intimate details and this must be respected.

The final point that we get from this chart is the importance of making communication relevant to the member. It’s a personal hobby horse of mine, but it’s a problem super funds have struggled with and continue to struggle with given the need to communicate their message to such a vast array of members.

This is clearly a complex issue driven by many factors, such as the heavy compliance overlay the industry has and younger members having no regard for the concept of retirement. Whatever the causes, there is clearly an opportunity for all super funds to improve the relevance of their communication with members.

At CoreData, we strongly believe that frequency x value = growth – that is to say that the frequency of the conversation, coupled with the value of that interaction, is what will ultimately drive growth in intimacy, engagement and loyalty.

CoreData Research

CoreData is a global market research consultancy and unique collaboration of market research, media, industry and marketing professionals.