Gen Y: The Messaging Wars. Presented by: Michelle Tustin, Research Director

Transcription

1 1 Gen Y: The Messaging Wars Presented by: Michelle Tustin, Research Director

2 2 Methodology Flow Qualitative Exploration Focus group discussions with Australian Gen Y s and Boomers, exploring key issues, attitudes and drivers of engagement with Super. Quantitative Measurement An omnibus survey with Australian Gen Y s and Boomers, to determine broad engagement incidence and types of engagement. Panel Discussion A panel discussion at CMSF 2014 with focus group participants and group moderators for greater understanding and opportunity for further Q&A.

3 INTRODUCTION 3

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5 5 Gen Y: What has been reported 46% 12% Cannot correctly explain superannuation or admitted they didn t know what it is 1 in 3 incorrectly identified the amount of super guarantee or were unsure of the percentage amount. Only 26% were correct nominating 9.25% Of those surveyed did not know how many superannuation funds they have REST (2013) Time to go back to basics, with nearly half of Gen Y in the dark when it comes to super REST survey, Releases/2013/Time-to-go-back-to-basics,- with-nearly-half-of-gen? 45% **REST (2014) Gen Y on autopilot when it comes to super REST survey, Releases/2014/Gen-Y-on-autopilot-when-itcomes-to-super-%E2%80%93-REST-s Almost 1 in 5 admitted they don t know much about Australia s superannuation system Are unsure of where they would invest their super if given the choice**. 4 in 5 do not know or only have a vague idea of the fees charged by their super funds**.

6 6 What we heard Gen Y s engagement in Super is not a sign of disinterest It is a sign of their current financial focus and lack of understanding of Super They lack the vocabulary to engage in Super They lack the education to engage in Super but they do not lack interest in their hidden bank account Super

7 7 Settled Group Unsettled Group Two key sub-groups exist Slightly older, married, or in a partnership, having or about to have children, settled, stable jobs, buying houses/cars Ordered, responsible, secure, reliable, and accepted. Profile Perceptions of Super Younger, changing jobs, still settling into a career, focus on travel, single Government, controlling, powerful. Not in control. They know what they are doing and are intelligent.

8 8 Peter Pan Syndrome refers to younger generations' perceived unwillingness to grow up and their corresponding immature behaviours. Plus the Peter Pans Most prevalent in the generation born in the late 1980s and 1990s where the development of a sense of responsibility does not occur nearly as early as it used to. Possibly contributing factors might include over-protectiveness of modern parents, rising costs of living, and increased difficulty in finding satisfactory partners.

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10 Gen Y: Unengaged or Financially Naïve? 10

11 AWARENESS AND INTEREST IN SUPER 11

12 12 Very few Gen Y s recall Super forms when starting their first job Why? They are disinterested in the paperwork They have no awareness they have options The have no education to think they should care They are focused on the independence an income will provide The pay lady or parents complete the paperwork, often unseen

13 13 First Job Do you remember filling out forms Yeah the tax file form, the application form, bank account details Oh and Super.you join theirs and that s it

14 14 Gen Y s: First Real Job The First Real Job is when Superannuation is seen as:..the hidden bank account becomes more relevant and real. BUT They still do not understand the mechanics of Super Some have an awareness that they have options Few understand the income, death or disability insurance is included

15 15 24 years First considered Superannuation

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17 17 So who is making the decisions? Parents are the Voice of Reason, their opinions, experiences and recommendations matter. The more financially sophisticated the parents the more influence they pervade. Employers are key influences many Gen Y feel compelled to use the employers fund, some feel they do not have an option. Discussions on the value and availability of an alternative Fund is not the norm.

18 SUPER: WHAT S THE POINT? 18

19 Gen Y To grow my superannuation through smart investment 1st Growth is the Aim but education is what they need To educate me on the best options and choices of investments To communicate my current balance and previous performance To provide me with financial planning advice 2nd 3rd To offer me insurance products such as life, income, disability Q4. Thinking of your main super fund, please rank what priority is most important to you for your fund to fulfil to the least important? Base: Gen Y (n=344); 55 + (n= 278)

20 20 Gen Y openly admit they have no education relevant to Super. They want to be educated: Education the key Through simple terms and a relevant vocabulary By their employer when they start their first real job At Senior school - the time of their first job (14 years) From an independent source when they receive the Super forms Q4. Thinking of your main super fund, please rank what priority is most important to you for your fund to fulfil to the least important? Base: Gen Y (n=344)

21 21 Gen Y To use as an income stream 63% Gen Y are clear about what they will use Super for: To take a holiday None of the above To pay off a mortgage Other 14% 13% 9% 1% To buy a particular item 0% Q7. What do you expect to use, or are using, your superannuation for when you retire? Base: Gen Y (n=344)

22 22 21% 23% 16% 15% And are realistic about the amount they expect to need for retirement 5% 3% 1% 6% 8% 2% Q8. The age pension is currently worth $18,000 per year. How much yearly income do you think you would need a year to live off in retirement? Base: Gen Y (n=344)

23 23 The Point is Super is boring but money to live a good life is not! Super Funds need to support the educational needs of Gen Y with its current customer activities So that the benefits of Super are relevant and valued.

24 WHAT ABOUT TRUST? 24

25 25 Trust Trust drives loyalty and advocacy across all Financial Services sectors Superannuation is no different Trust mitigates complexity and reduces churn A strong association with Trust will assist engagement with Gen Y

26 26 Super does not demand a lot of attention it is in the background and is there when you need it. What breed of dog do you associate with Superannuation? Chihuahua Golden Retriever Labrador Maltese German Shepard Small dog because super grows at a slow rate. Its not a barker and its subtle. It s your standard dog, trusted by everyone. Relaxed, quiet and in the background. As it is a guard dog it is protecting your future.

27 27 A Trust Comparison? Boomers Have a deep trust relationship with Super Funds, not always positive in nature Generational issues and events erode trust Super Funds performance is rebuilding trust among Boomers Gen Y Have a shallow trust relationship with Super A lack of experience and knowledge is a road block A lack of perceived relevance needs to be addressed Yet they are looking for reassurance and education

28 28 How to influence trust Media (Social and Traditional) Economic events will play a part General cynicism and relevance needs to be addressed, by Funds being Digitally savy Funds need to interact with Gen Y just as other successful brands are currently Increased complexity or changes in legislation create obstacles to trust Clear explanation of the value of Super in a holistic sense

29 29 Getting in front of the Influencers Through Thought Leadership the sector can build relevance and accessibility to attract positive main stream media Educate early at key career/working life milestones Reduce complexity through simplification of language and concepts Explain all the elements to build awareness of the broader benefits Demonstrate the benefits through media and communications

30 ? What is Thought Leadership? The concept of Thought Leadership is frequently used as a way of reframing issues or topics. It is a means of educating customers, potential customers and other stakeholders about new ways of looking at or solving a problem. In this type of use, the objective is less to establish an individual as a Thought Leader, but rather to drive innovative thinking.

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32 ENGAGEMENT 32

33 Messages to cut through Shock campaigns contrasting realities of retirement for those that have planned and those that have not.

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35 35 The importance of education What they say they want: Invitations to Super seminars via Milestone achievements for balances via SMS Mailed information with changes and performance, focused on how it effects them, the individual A language and explanation that is consumable for Gen Y Help them make the best decision now, for a better financial future

36 36 Contact me: Level of Contact 28% 25% 30% They say contact me regularly 1% 11% Other Never Once a year Once every Once every 6 months 3 months 5% Once a month Q5. How often would you like to be contacted by your superannuation fund? Base: Gen Y (n=344)

37 37 Facebook Never liked X Twitter Never followed X How which is the best medium? Sponsorship Internet TV/ You Tube banners Yes Yes Yes But keeping track of Gen Y s is like hearding cats! Mail Yes SMS Yes

38 38 Gen Y change their work and their home address regularly, but they will never give up their mobile phone number or gmail account

39 Will they engage without major behaviour change? 39

40 40 Key take outs 1. Gen Y s engagement in Super is not a sign of disinterest 2. Gen Y lack the understanding and education to engage in Super 3. Super becomes real to Gen Y when they get their first real job 4. Gen Y first seriously considers Super at 24 years old 5. Gen Y know their Super Funds, but not their balances or investment profile 6. Parents and Employers are key influencers in Super decisions 7. Perception: Super is boring.but money to live a good life is not. 8. Influencing Trust in Super through Thought Leadership is a sector opportunity 9. Gen Y want contact, but in a relevant, personalised manner to them

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