Speaking at the annual Association of Superannuation Funds of Australia (ASFA) Conference in Sydney, Hess said providing individuals with tangible income projections, and incorporating these into a series of tailored, proactive data driven communications had helped capture US pension plan members’ attention, encouraging them to take action to build their retirement savings.

The ‘data smarter’ communications are powered by advances in member data customisation capabilities and a deeper insight into the behavioural attributes of members.

“We’re starting to have a better idea of what works to reach and motivate people and advances in technology and data analytics is set to empower these programs to achieve real change in the retirement prospects for many Americans,” Hess said.

The message comes as Australian super funds continue to battle poor member perception. Recent Roy Morgan research* showed that only 42 percent of members in retail super funds were satisfied with the financial performance of their fund, compared to 49 percent for industry funds and 64 percent for self managed super funds.

Hess, who is in Australia to visit J.P. Morgan’s Investor Services group, which resides in the Corporate & Investment Bank, and share member engagement strategies with its local superannuation fund clients, noted, “Triggering member action on retirement savings adequacy and tailoring the message to different investor circumstances is a universal challenge for institutional investors world wide. Despite the different retirement systems, we see common challenges across US and Australian funds.”

Audience of One® approach
In the US, J.P. Morgan runs a member communication and education philosophy, Audience of One®, that is based on the firm’s experience that effective communication programs must speak to each participant as a unique individual. Audience of One® communications resonate with members by adhering to the following principles:

• Make it personal – marry data and message to offer a relevant, individual experience
• Make it simple – break messages down into manageable pieces
• Connect the money to the emotion – motivate participants to take responsibility
• Diagnose before you prescribe – understand an individual’s current situation
• Cultivate an ongoing relationship – pursue an ongoing dialogue with participants

US pension plan participants exposed to Audience of One® during the period 2005-2012 showed a 31 percent increase in their overall income replacement levels, with the number of participants on track to achieve at least 70 percent of their income in retirement increasing by 104 percent.

Hess said the rapid evolution of data customisation means super funds can now use individual member data to build tailored messages based specifically on each member’s fund profile – taking into account age, income and levels of engagement. These messages work to drive constructive member behavior and can be delivered through all touchpoints: Internet, call center, member statements, print media and face-to-face education meetings. He said simplicity was the key to effective communications.

“Every Audience of One communication comes down to one salient point, helping participants answer the question: “Am I on track to live comfortably through my retirement?” he said.

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