The CoreData Super Fund Branch Research survey for 2014 asked 2,500 Australians to rate the top 24 superannuation funds on six key brand attributes designed to measure the brand strength and appeal of Australia’s largest funds.
Respondents were asked to rate their own super fund as well as funds with which they are well acquainted.
The research found there were very similar growth rates among established funds, with few funds growing significantly faster than the rest.
The report also indicated that the industry as a whole, particularly the industry fund sector, suffers from a lack of brand distinctiveness, with the top brand perception ratings clustered tightly together.
“Additionally, there is very low correlation between 5-year returns and brand perceptions, potentially due to the general lack of awareness about super fund returns,” said CoreData.
“Super fund members are also more focused on fees than returns, possibly due to the fact that they have a more [comprehensible] impact on super fund balances.”
The most critical choice drivers for consumers, according to the survey, were trustworthiness, stability, fees and investment performance.
“Although most funds, particularly industry funds, traditionally perform well in these aspects, there is clearly a glut in this positioning,” said CoreData.
All funds in the survey had negative brand equity, meaning scores were lower for branded customer value propositions (CVPs) than unbranded CVPs.
“The most appealing CVPs tend to carry a relatively simple message that focuses on competitive returns, low fees, and emotive appeal,” said CoreData.
The research also showed the four major banks are not utilising cross-selling strategies as effectively as they could.
Results indicated that ANZ has the highest proportion of banking customers in ANZ super products, with 13.8 per cent of customers also members of Smart Choice or OnePath.
This was followed by CBA, with 10.9 per cent of banking customers in CBA Essential Super or Colonial First State.
NAB and Westpac both have 9.6 per cent of their banking customers as members of MLC and BT Super for Life respectively.
