Industry super funds have outperformed retail super funds in terms of brand perception, according to a CoreData survey.
CoreData’s Super Fund Brand Research Q4 2014 survey asked 2,000 Australians to rate the 23 largest superannuation funds on “key brand aspects” designed to measure the brand strength and appeal.
Respondents were asked to rate their own super fund as well as funds with which they are well acquainted.
The research found that on average industry funds scored better than retail funds across all brand aspects, particularly on perceptions of value.
“The study also found that super funds that scored well across the value attributes tended to have higher consideration scores, [which is] a measure of prospective members' intention to use a given fund and current members' intention to continue using a fund in the future,” CoreData said.
“With their favourable value perceptions and the fact that fees and charges are among the most pervasive choice drivers among Australians who actively chose their super fund, industry funds are therefore better placed than retail funds to attract new members and retain existing members.”
The research group also pointed out that despite having a wider reach, bigger funds do not necessarily have stronger brands.
“Several larger funds with strong awareness scores performed poorly across key brand attributes, as well as advocacy (intention to recommend) and consideration,” CoreData said.
CoreData head of financial services Kristen Turnbull said while members have to be aware of a super fund to choose them, awareness is not the “be all and end all”.
“Half of all members might have heard of you, but if you can't demonstrate utility and aren't deemed as a brand they can trust, then they're not going to choose you,” Ms Turnbull said.