Customer Experience is fast becoming a ticket to play in the Super sector

Recognising that loyalty improves retention – that’s the easy part.

Uncovering what drives loyalty – that requires big data and deep insights.

The latest findings in the 2022 CSBA FEAL Superannuation CX Benchmarking report showed that trust continued to be the top driver for building fund loyalty – a key reason why members stayed with a fund long-term.

And regression analysis confirmed that feeling like a valued member was a key driver of trust in one’s fund.

“The largest performance gaps between the scores for extremely satisfied members versus extremely dissatisfied members, were for ‘feeling like a valued member’, said CSBA CX Director of Finance, Sam Monteath.

Presenting the report at the 2022 CSBA Superannuation CX Forum in October, which brought together industry CX executives, experts and thought leaders at this annual highlight event, Monteath warned that trust is all about actions.

“Did you do what you said you would do? And are you doing this consistently? Real trust is built through consistently delivering and fulfilling promises at every point along the customer life journey,” she said.

Moving from rational trust to emotional trust

Speaking to the Forum’s theme, Know and retain for the long game, Monteath explained that at the basic transactional level, delivering on what you promised are the hygiene factors that build rational trust over time.

“But as you start to understand a customer, a more personalised and tailored approach must be taken to build loyalty,” explained Monteath.

“When members interact with their fund, it is critical for funds to use each interaction as a valuable opportunity to form positive impressions and create personalised, meaningful connections. With each personalised, meaningful interaction, funds build on the notion of feeling valued and a relationship for the long term.”

“Building an emotional trust-based relationship along the customer life journey is key to long-term retention.”

Do you know your customers well?

No fund’s membership is the same and developing a deep knowledge of your member base is critical to deliver the best possible retirement outcomes.

Monteath: “How confident or empowered do your members feel? Our research shows that those who feel empowered by their fund and are confident about their retirement, are far less likely to consider alternative funds and more likely to remain with their fund for the long term.”

Are members loyal for the right reasons?

Is loyalty born from trust where members actively choose to stay? Or have funds just made it too hard for them to leave?

“Our latest results showed that 25% considered switching funds in the last 12 months but did not. Not because they felt like a valued member, but for reasons that are effort-based in making the switch.”

The power of customer insights

Exploring the enduring issue of retention and the ways in which knowledge can be transformed into a competitive advantage, keynote speaker, Karen Halligan, KMPG Partner, Customer Marketing, MarTech & Media Advisory, described today’s ‘Age of the Customer’; where organisations with a customer-first outlook are more likely to meet customer objectives, expectations and deliver a return on investment.

Particularly for the Superannuation sector, with escalating regulatory demands and risk, organisations must evolve their offerings based on clearly defined member needs and wants, customer pain points and value creation.

Customers today are more aware than ever. And they demand tailored support and flexibility. A recent Gartner study found that 71% of customers expected companies to be well informed of their personal information during an interaction.

The future of MarTech

Responding to KPMG’s presentation on the role of MarTech for Super funds, CSBA Managing Director Paul van Veenendaal, said MarTech enabled the collaboration and alignment of technology, data, analytics, content, and marketing to provide a single view of the customer.

“Our latest customer research found that the digital experience for members of many super funds was often clunky, resulting in repeated contact across channels as customers seek to resolve their enquiries.”

“The importance of digital engagement and the demand for self-service cannot be underestimated, particularly in the superannuation sector that is challenged by disengagement and a ‘set and forget’ mentality, especially among younger members. Digital mediums provide an effective path to connect to members with relevance,” he said.

“Most importantly, a continuous Customer Experience measurement and improvement program will provide insights to know and retain for the long game.”

For more information on the CSBA FEAL Superannuation CX Benchmarking program, email sam.monteath@csba.com.au

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