Survey results an important tool for super funds looking to boost member engagement.

Results from the 2013 Net Promoter Score Survey, developed as a joint initiative of the Fund Executives Association (FEAL), Customer Service Benchmarking Australia (CSBA) and Melbourne Business School (MBS) were yesterday described as an important tool for super funds looking to boost member engagement and more closely align fund management with member participation needs.

The Net Promoter Score Survey (the Survey), now entering its sixth year, is designed to benchmark customer satisfaction by assigning each participant a net promoter score (NPS). The NPS is a metric derived from survey responses to the question “how likely are you to recommend” and is a widely used measure of customer loyalty around the world.

Pat Heaslip, Research Director of CSBA, said that this year over 30 superannuation funds from around Australia were involved in the Survey.

“We interviewed 200 super fund members from within each of the funds,” she explained, “which equates to over 6000 interviews. This gave us a real insight into what drives customer satisfaction. In addition, we interviewed 50 employers from 11 funds to assess their satisfaction in dealing with superannuation funds. ”

Joanna Davison, acting CEO of FEAL, explained that in Australia, a positive NPS is seen as a great result for any industry.

“On that basis the results for the super funds involved in the survey were excellent”, she said “in that the overall NPS remained positive among members.”

For those super funds which participated in the Survey, results were then analysed at a workshop held at Melbourne Business School and facilitated by a specialist in the field, Associate Professor Don O’Sullivan.

Ms. Heaslip said that participants were united in their praise of the benefits they received from participation in the Survey and subsequent workshop.

“A number described the program as well-rounded and thorough,” she said, “and others said that the insights it offered around member engagement and satisfaction were extremely valuable and applicable to future strategy and planning initiatives.”

Ms Davison concluded by saying that for super funds looking to measure and improve member satisfaction and retention, the Survey is a great, cost-effective initiative.

“It has become the recognised industry benchmark,” she explained “and as a result, a number of Boards and CEOs now require a benchmarked NPS in their regular reporting.”

FEAL and CSBA are both committed to this Survey and its long term success as the industry’s benchmark. We would encourage all super funds to participate next year.”

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• MySuper set to become a battleground as competition grows between superannuation funds
• One-way valve to self-managed super funds (SMSFs) causes stress in super industry
• BUSSQ members most satisfied with their super fund
• Member engagement is still a key challenge for super funds

MySuper set to become a battleground as competition grows between superannuation funds

Investment Trends have released the 2013 Sentiment Report.

Proposed MySuper funds are set to become the new battleground for superannuation funds, according to the 2013 Member Sentiment and Communications Report released by leading wealth researcher Investment Trends.

Despite the introduction of Super Choice in 2005, 69% of super fund members are still in a fund they kept from a previous job or the default fund their employer put them into.

‘Half of those who set up a super account over the last two years chose their employer’s default fund,’ said Uwe Helmes, Senior Analyst at Investment Trends. ‘The default fund still gets the lion’s share of the new entrants to the labour market and those who change jobs, so it’s critical for both industry and retail funds to own that space going forward.’

‘People change super funds when they change jobs or get advice – otherwise, they tend to stay put unless they’re really dissatisfied. That’s why the issue of default MySuper funds is such a big one,’ added Mr Helmes.

One-way valve to SMSFs causes stress in super industry

The research also found that the constant flow of affluent members to SMSFs is proving a challenge to both retail and industry funds. Approximately one million Australians changed super funds in the last year, 6% of whom moved to an SMSF. However, less than 1% of those who changed super funds came back the other way.

‘It’s a one-way valve,’ said Helmes. ‘Once members start an SMSF, they rarely ever go back. However, our research also shows that the majority of members who are considering setting up an SMSF in the future say that there is something their super fund can do to prevent them from leaving.’

BUSSQ members most satisfied with their super fund

Member retention is a key area of focus for super funds and high member satisfaction is one way to ensure that clients stay with the fund. The report found that members of BUSSQ Building Super are the happiest overall in Australia, with 83% of members rating the super fund as either ‘good’ or ‘very good’. State Super rated highest for customer service and value for money, while UniSuper was rated the best at keeping members informed.

Satisfaction continued to improve across super funds overall, but BUSSQ stood out above the rest. ‘Members’ assessment of the advice offering was a key driver for BUSSQ’s high ratings, as well as the company’s arrears process which helps members claim any unpaid super from employers,’ said Mr Helmes.

Member engagement is still a key challenge for super funds

Member engagement with superannuation remains an issue, especially younger members who are often not interested in their super. When asked what would make members under 40 more engaged with their super, being older (36%) and having more super (30%) were most likely to be cited. Besides age and super balance, other key drivers of engagement for younger members included mobile apps (21% of those aged below 40), website login (15%) and a login integrated with their bank account (15%). Currently, the customers of OnePath and BT are most likely to have used a mobile or tablet to access information on their super.

Communication with members via social media was another topic that received a lot of interest among younger members. However, the study found that engagement with super through social media is still in its infancy, with less than 5% of members saying they currently follow any financial services company via social media.

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