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The top 3 challenges super funds face

The top 3 challenges super funds face

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2 years ago

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Research by KPMG has revealed the top three challenges super funds face are trust, financial literacy, and showcasing their ESG (environmental, social, and governance) commitments. Most of the challenges super funds face can be improved by creating a tailored content marketing strategy that targets clients’ concerns. Here we explain how content can help your super fund satiate clients’ needs and overcome its challenges.

How super funds can overcome financial literacy

Financial literacy is a major challenge for Australian super funds, with only 35% of Australians knowing the actual value of their superannuation and 25% of Australians believing they don’t have one when they do. Research has showcased time and again the benefits of educating consumers, but what are they?

  • Trust – Consumers have higher levels of trust in companies that educate them
  • Decision-making – Educational content makes consumers 131% more likely to purchase a product
  • Nurture leads 77% of marketers believe educational content is the best way to nurture leads

“ Consumers have higher levels of trust in companies that educate them. ”

Improving financial literacy begins by creating educational content that’s tailored to your target audience. With superannuation being a complex and often confusing area of finance, providing clear financial advice can help you build loyalty and brand awareness.

Accessibility to information should be front and centre of your super fund’s mind when producing content. Explaining complex subject matter, like market forecasts, original research, or risk assessments, should be written simply and clearly so all clients understand the content. Consultants Ethos CRS, recently analysed the readability of the top 20 Australian superannuation funds content. It found not one of the 80 documents provided by the 20 funds came close to reaching a readability score of 100, with the average being only 45.6. This indicates super funds must be clearer in the content they produce, with the understanding that most Australians have poor financial literacy levels.

Other than producing content that’s easy to understand, your educational content should also be engaging and dynamic to create interest. Here are five other ways your super fund can educate clients:

Building trust takes time and commitment

After the impacts of COVID-19, maintaining clients’ trust has never been more important. According to James Shipton, Chair, Australian Securities and Investments Commission at the Financial Services Council Summit there is a severe trust deficit in the superannuation sector. A tailored content program can help address this deficit and improve clients’ trust in your super fund.

Here are three ways you can create a content program that fosters client trust:

  • Be authentic – Create content that’s authentic, engaging and customer-centric. This could mean sharing client stories or creating a user-generated content campaign. A recent survey found 90% of consumers value authenticity when deciding which brands they want to support.
  • Create valuable content, not promotional – Producing valuable content that addresses your clients’ concerns and financial literacy levels is a great way to inspire trust. While promotional content has its place in improving brand awareness, it does little to improve trust and loyalty.
  • Engage with consumers – Providing great customer service for current and prospective clients is another way to improve trust. Offering an omnichannel approach to customer service and consistently engaging with consumers across all platforms, will showcase your super fund as honest, transparent and approachable.

Everyone wants to know your super funds ESG commitments

Australia’s recent struggles with bush fires, floods, and other social and environmental issues have seen clients want their super funds to take a stance. This goes even further, with the recent global crises making clients ask and investigate what their superannuation is being invested in. In fact, 86% of Australians now expect their super to be invested ethically or responsibly. While in the past your super funds’ ESG commitments have been an internal aspect of your brand and management, today they should feature as a core part of your external-facing content.

71% of consumers say they prefer to buy from companies that align with their values and 81% of people say they research a brand and product before purchasing it. Sharing your corporate social responsibility is an effective method of building brand identity, awareness, and loyalty. If you want your super fund to remain relevant and keep up with the times, it’s important you make your ESG commitments a pillar of your overall content marketing strategy.

How content is your super funds saving grace

Your content program is how you connect with current and prospective clients. By addressing the top three challenges super funds face through your content, you can generate new leads, retain current clients and remain competitive for years to come.

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