The search for new members & growth
Media, regulator and political scrutiny around the early release scheme, ever increasing regulation and a government that appears highly motivated to implement reform, there’s a lot to consider.
Considering all this from a marketing and new member acquisition angle, it makes a tough job even tougher. The recently announced stapling of super accounts is yet another hurdle to new member acquisition.
Few will argue it’s a good move for the millions of Australians paying unnecessary fees however it will stifle a lucrative new member acquisition channel, particularly for industry aligned funds.
In addition, although trustees already have a duty to act in the best interests of fund members, it is now likely funds will be constrained from using members’ money to fund advertising campaigns that target broader industry issues, so we can expect marketing spend to continue to come under heavy scrutiny.
$3T in the superannuation accounts of Australians today, and Australians paying $30B a year in fees, there is a lot at stake.
So how does a marketer navigate these choppy waters and deliver customer growth? Here’s a few ideas to consider:
Continue to target switchers
Yes, accounts will be stapled – but that doesn’t mean consumers will stop switching funds. Switchers are only 3.2% of the total category, however, that represents a $35B dollar opportunity each year – a big opportunity for smart funds.
Factoring in the increasing financial literacy of the population, fund and industry consolidation, as well as the creation of the Governments Your Super Online Comparison Tool, we see this pool of switchers, and the associated opportunity only growing.
Target younger audiences
Funds in it for the long haul should double down on targeting younger Australians entering the workforce. With stapling to become a key issue, acquiring new members who are entering the workforce for the first time could become a lucrative strategy, especially when we think about the customer lifetime value of a Super customer.
Paying $1000 to acquire a customer now is a bargain when that member becomes a customer for 40 years or more. Social media and a keen purpose is key to starting a relationship with this audience (see more on this below)
Differentiation and purpose
So there’s $35B in the switching pot and a whole heap of young Aussies who are about to start their work life up for grabs. How are we going to stand out? Why should they choose us? What’s our purpose? We need to provide consumers in these segments with a compelling reason to consider switching to us or starting their career with us.
The sea of similarity in Super funds simply will not excite the younger audience. In order to effectively engage, we will need a really clear proposition that appeals to them, followed by transparency in living that position, as this audience will see straight through insincerity.