James Brownlow Phd Founder | managing director

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The quantification of the level of connectedness between a member and their superannuation.

No. Superannuation Engagement is a distinct construct comprised of multiple dimensions and measures the level of interest between a member and their superannuation, agnostic of their fund(s). 

The construct of superannuation engagement is too complex to be observed (let alone predicted) by a single behavioural attribute. It is likely that engagement can only be truly observed by considering a multi-dimensional construct that includes behavioural, psychological/cognitive, emotional, and social dimensions.

No, it is now clear that superannuation engagement is not binary and therefore superannuation customers should not be lazily categorised as "engaged" or "disengaged", rather superannuation engagement exists on a continuum, and in contrast with the extant thinking and beliefs, many customers are engaged with their superannuation – and in fact many Australian superannuation customers are very knowledgeable about technical aspects of the superannuation framework and as such highly engaged with their superannuation.

It's not as simple as saying males are more engaged than females, and younger people are less engaged than older people. This type of simple statement is not only general, it also doesn't allow for comparison between people in common classes. For instance, if you can only use truisms (aside that they're not even true), is a young male more engaged than an older female...?? This type of question can only be answered with consideration for multiple attributes and details about the member that can be coalesced into a single quantitative score that represents their superannuation engagement.

Superannuation is not constant for a member in a time-series. Personal and macro events occur that impact the engagement an individual has with their engagement. As a simple example, we understand that a likely profile for superannuation engagement would be a U-shaped curve. That is, engagement may be high in the initial phases of joining a fund, and then would likely subside until the onset of retirement whereupon it would increase to a higher level of engagement. Of course, that is being overly simple but serves to illustrate that superannuation is dynamic, not fixed.

Knowing the likely engagement level of each individual member in your superannuation fund allows you to deploy targeted strategies to members based upon their level of engagement. In doing so you can improve the retirement outcomes of your members, and you can improve business outcomes such as member retention and Customer Lifetime Value.