Members first: How superannuation funds can do better

Author: Erin Weaver

Strategies superannuation funds are using to enhance engagement and prioritise the member experience.

In today's complex financial landscape, superannuation funds face the critical challenge of not only managing members’ future retirement savings but also ensuring that they are prioritising their members’ interests now. Superannuation is a highly regulated, complex system, which can make it difficult for funds to seamlessly deliver on both fronts. Balancing the long-term goal of securing financial futures with the immediate need to ensure members feel valued and supported is a delicate act. This inherent tension underscores the importance of robust member engagement and innovative solutions to bridge the gap between regulatory compliance and exceptional member experience.

Where once the industry was populated with hundreds of funds servicing different niche groups of the market, we now have fewer and larger funds operating with a very diverse member base. As funds consolidate, they not only increase in numbers but in differing needs and expectations. This diversity requires a more nuanced approach to member engagement, rather than a one-size-fits-all approach.

Compounding the challenge is the high level of disengagement of members within their funds.

It is certainly in a member’s best interest to engage with their fund well before their retirement in order to make the right decisions for their future. It follows that the superannuation funds must implement strategies to increase the quantity and quality of member engagement at all levels in order to ensure the best member experience.

Superannuation funds are looking for solution and some of those solutions were featured at The Future of Superannuation Fund Administration 2024 Forum in Sydney last month. Sarah Penn facilitated a panel discussion on member experience and engagement.

If you're working for a superannuation fund and looking for strategies to optimise your member engagement, we’ve pulled together our key takeaways from some of the excellent presentations and discussions.

Promoting engagement through digital enhancements

Modern superannuation funds must level up their digital experience if they want to attract and retain the modern member. These members are younger, in the early to mid-stages of their career and accustomed to the accessibility and efficiency of a digital world. They are also the cohort that is typically the most disengaged with their fund.

It is no longer enough for a fund to just offer a website and online access to member accounts. Every function should be easily accessible via computer or mobile device as the modern member does not operate in a world of printing and sending off forms (sadly, still a common requirement).

The new digital experience must ensure seamless access and interaction. Many funds are going the extra mile and making their online functions personalised and interactive.

Personalisation enables funds to tailor their online communications and functions to the specific person and the information held about them by the fund. In turn, this personalisation makes the member feel more seen and catered to.

Furthermore, superannuation funds are incorporating interactive tools on their websites, allowing members to input personal information and receive tailored outputs, such as projected balances and insurance options, empowering members to make informed decisions independently.

Invest in Internal Dispute Resolution (IDR)

Admittedly, handling disputes is not the type of member engagement most funds are striving for but there’s no question that is critical for the fund to get complaints handling right. This involves constant improving of processes and learning from past experiences. Many members will have no contact with their fund until something goes wrong, so the dispute resolution system is not only a risk management tool but an opportunity to demonstrate what excellent customer service looks like. In fact, if you successfully deal with a customer complaint, they will be more loyal than a customer who never complained in the first place.  

Despite all innovations that have occurred in superannuation funds in recent years, the level of complaints received by funds is increasing. The implications of poor complaints handling are significant: loss of revenue for the fund, members leaving the fund and of course regulatory retribution.

ASIC’s report 751 is a full guide into complaints handling, which includes suggestions for improvements and enforceable activities. Read up if you haven’t yet!

AFCA is another great resource as they are committed to helping funds manage disputes internally. We chatted with an AFCA insider a few months ago and condensed some of the recommendations into an article - another worthy read!

Assume vulnerability as a default

This is an extremely important reminder and segues nicely from the last point. When a member reaches out to their superannuation fund, it's often because they are experiencing some form of vulnerability. This vulnerability might be temporary, such as a knowledge gap, illness, or financial hardship, or it could be more inherent, like low literacy, language challenges, or a disability.

Regardless of the cause, customer service officers should be trained to respond with sensitivity and provide appropriate support, helping the member gain confidence and trust in the fund's commitment to their well-being.

Simplification

Is simplification in super even possible?

It simply has to be. Every fund must strive to simplify processes, products and language where possible to enhance the members’ experience.

Streamlining product ranges is essential, as multiple products not only increase costs but also add unnecessary complexity. If a product doesn't significantly attract a segment of the member base, it shouldn't be offered.

Remove complex language. Jargon and overly technical terms should be avoided in all communications with members. However, it's important to explain necessary but complex concepts in a clear, understandable way to ensure members are well-informed.

Simplify processes. This recommendation builds on the need for digitisation and the understanding that many members may be experiencing some form of vulnerability when they do engage with their fund. Streamlined, user-friendly processes not only enhance accessibility but also ensure that all members, regardless of their circumstances, can easily navigate their superannuation and access the support they need.

At Mayflower, we recognise how critical member engagement is in shaping the future of a fund. The techniques and approaches essential for cultivating trust and confidence among members must continually adapt and improve. Our expertise blends strategic communications, smart technology and risk management planning in developing processes and strategies to help superannuation funds optimise their member engagement and experience.

If you’re looking to elevate your member communications, create regulated disclosure documents efficiently or make needed operational changes to enhance member engagement, please drop us a line.