It’s not always about the money for members who are planning to switch Superannuation Funds
21st November, 2017
A recent CSBA and FEAL survey of over 6,000 members from 34 Australian superannuation funds found that 10% of members intend to switch away from their current fund in the next 12 months. Only around one third of these members plan to switch for better financial returns or lower fees, with a similar proportion intending to switch due to a change in employment, seeking better customer service or to consolidate their superannuation with another fund.
FEAL CEO Joanna Davison stated that funds have a degree of control over member retention through communication and customer experience.
“There are many reasons members consider leaving their fund including member experience, products and entitlements. Funds may retain members who are considering leaving the fund through great service and proactive education. Communicating the option to take their current superannuation to a new job, and consistently providing experiences that lead members to consolidate with your fund rather than with an alternative fund can improve retention rates. Funds participating in this industry benchmarking program are evaluating member feedback on a regular basis and benchmarking their performance against other funds, as well as gaining insight into best practice within and beyond the sector.”
The study also found that member loyalty was strongly linked to members’ level of trust in their fund and members feeling valued by their fund. David Laffin, CSBA Superannuation CX Research Director highlighted an increasing challenge for funds to retain members.
“Member expectations of Superannuation funds are increasing and it is so much easier to compare and switch your fund these days. Funds with a strong and consistent member focus, funds that listen to their members and act on member feedback, making interactions easy for members and making members feel valued at all touchpoints build trust and loyalty.”
“As expected, we continue to see differences in engagement and loyalty across different age groups, and as an industry, building stronger engagement with younger people gives funds a head-start in building trust, which leads to long-standing relationships. It is important that funds consistently demonstrate that they care about each of their members.”
“Some members suggested more personalised service would help increase their engagement with superannuation, and it is no surprise that leading funds prioritise member segmentation and profiling to better understand how different member segments think, what their needs are, and how communications can be tailored accordingly, helping to build engagement, trust and reducing the risk of members leaving their fund.”
For more information contact David Laffin, CX Research Director, Financial Services, CSBA on 03 9605 4921 or firstname.lastname@example.org
CSBA, a leading customer experience research consultancy, has been working closely with financial institutions across Australia to improve customer experience since 1997. For the past 9 years, CSBA has partnered with the Fund Executives Association Limited (FEAL) and Melbourne Business School to help Superannuation funds better understand member needs and to deliver quality customer experience, with more than 50 funds and over 55,000 members involved in one of the largest independent Superannuation Customer Experience research programs in Australia. Contact CSBA on 03 9605 4900 or email@example.com
CSBA Superannuation Press Release in Money Management Newsletter: http://www.superreview.com.au/news/superannuation/ten-cent-super-members-plan-swap-fund