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How can super funds refine their member services?
With intentions to switch funds remaining elevated and overall member satisfaction easing, a new report highlights how super funds can lift their game in member services.
According to Investment Trends’ 2024 Super Member Engagement Report, obtaining faster responses remains vital for super fund members (29 per cent).
Improving technical knowledge on the fund website, too, has emerged as a key consideration (25 per cent) followed by better technical knowledge on apps (24 per cent).
Surveying 10,866 fund members, Investment Trends found retrieving log-in credentials is the most common reason members contact their super fund (17 per cent), highlighting the importance of a digital-led approach.
Other reasons included fund withdrawals (13 per cent) and questions regarding annual statements (11 per cent).
The survey also reported overall member satisfaction has continued to ease in spite of positive returns in FY23.
While super fund switching activity stands at 8 per cent, down from 9 per cent last year, intentions to switch remain elevated at 10 per cent, up from 9 per cent last year.
This was particularly seen among the pre-retiree cohort of 49 years to 65 years, who cited lack of trust, poor fund performance, and job changes as key factors.
“The persistently high switching intentions among self-directed members highlight the opportunity for super funds to build trust early and demonstrate consistent performance over time,” observed Ludovic Sevestre, associate research director at Investment Trends.
“They can proactively combat churn and enhance member loyalty by taking heed of the feedback their members have provided through this survey, but also by actively monitoring member engagement across their various service channels.”
Earlier this year, Roy Morgan’s Superannuation Satisfaction Report found super satisfaction stood at 66.7 per cent in January, above the long-term average of 58.3 per cent from 2007–24.
However, it fell short of surpassing the record satisfaction levels of 72 per cent reported in January 2022.
Speaking to Super Review earlier this month, fintech Bravura Solutions believed digital experiences will be key for super funds to build member retention and engagement in the years to come.
“I think all of the super funds in the industry are trying to do a number of different things to offer more to their members from a customer experience perspective. But at the same time, they’ve been trying to run a very good business from an operational perspective,” said Bravura’s group chief executive, Andrew Russell.
“Where they can provide greater customer-focused activities, by reducing costs in their back office by using technology, that will really allow them to focus on the moments that matter.”
In today’s digital age, such engagement is almost a given for members, he said.
“The world’s changing and all of us, as members of super funds, are expecting customised digital experiences, whether it’s for your shopping, whether it’s for buying or surveying property, or buying mortgages. Why should super be any different?” Russell said.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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