Direct Superannuation Case Study

Making superannuation more interesting

The average superannuation balance for Australians at retirement is $198,235 for men and $112,632 for women, well below the estimated balance required to attain a comfortable standard of living.

Confounding this problem is that ‘young’ people have been the least likely to contribute to Superannuation (beyond statutory employment related contributions). Superannuation products have historically had little relevance or tangibility among this disengaged, uninterested and inactive consumer group.

Our client, a major Australian financial services organisation, hypothesised that a ‘simple and fair’ superannuation product, accessible on-line, would appeal to this segment.

Validating hypotheses and testing the business case

The first step was to explore whether this was true. Our goal was to identify the attitudes/belief systems and drivers/barriers to super and to brands (providers) of super.

We also needed to identify the psychographic components of the ‘engaged’ and the ‘non-engaged’ superannuation savers to enrich the definition of the target segmentation.

We ran qualitative insighting sessions with members of the target audience. We learned that fund financial performance (fairness) was essentially a hygiene factor, but where there was indeed strong traction was around the drivers of ease and transparency.

These insights were used to help refine a product proposition which was measured by market-modelling techniques, to answer:

  • What’s the switching potential in an inert market?
  • Are the proposed product features enough to attract the target segment?
  • Would aligning the operation of the account with day-to-day banking systems deliver greater account activity and cross-fund consolidation?

The modelling included a number of variables, such as fees, investment options, returns and other related service initiatives.

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Powerful direction delivered confidence to proceed

It was clear from the data that our client had tapped into an unmet need and the proposition and detailed offer was innovative and very attractive to the designated target audience.

It worked by demystifying super, making the funds more visible and tangible. The key here was making its performance, balances, and transactions accessible as part of day-to-day banking tools.

At launch, the take-up exceeded initial expectations and firmly established the product as a premier on-line offer delivering to the needs of the younger and less engaged superannuation ‘saver’.

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