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Super funds missing 'perception of value'

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By Reporter
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2 minute read

APRA-regulated funds lack the "perception of value among members", with SMSFs scoring above the super fund industry average for satisfaction and engagement, new research has found.

The 2014 Superannuation Benchmarking Study conducted by Engaged Marketing surveyed more than 3,720 Australians in August and September about their super under a ‘net promoter score framework’.

The superannuation industry as a whole scored a net promoter score of -29 per cent which indicates there are 29 per cent more detractors than promoters, with the worst-performing fund scoring a net promoter score of -53 per cent, according to the survey results.

The survey showed SMSFs on the other hand scored a -5 per cent net promoter score.

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Engaged Marketing managing director Christopher Roberts said the results were a wake-up call to super funds about the growing appeal of SMSFs.

“What’s missing with traditional super funds is a perception of value among members,” said Mr Roberts.

“Because of the compulsory nature of super, Australians see super funds as essentially offering the same commodity with very little differentiation and low product involvement.”

Mr Roberts said this makes it hard for members of these funds to gain a sense of value.

The findings from the survey, he said, showed the main issues super funds were grappling with were control, transparency and trust.

Super funds, he said, need to offer a “more engaging super experience and demonstrate their value to members today, not just in the future, to generate more supporters”.

“By having more detractors than promoters, super funds are failing to capitalise on their most valuable marketing tool: their customers."

Mr Roberts said the research shows a substantial drop-off in stated loyalty between the leading and the worst performers in the industry.

“This has real consequences for member retention, especially as many Australians simply join whatever default fund their employer at the time happens to use,” he said.

“Interestingly, only 58.3 per cent of Australians across all age groups said they were likely to contribute to their current super fund if they were to change jobs.”

Super funds missing 'perception of value'

APRA-regulated funds lack the "perception of value among members", with SMSFs scoring above the super fund industry average for satisfaction and engagement, new research has found.

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