Boomers, Gen Y and Behaviour Change the Key to Success

Transcription

1 1 Boomers, Gen Y and Behaviour Change the Key to Success AIST Superannuation Marketing Symposium Jenny Witham, Managing Director Colmar Brunton

2 2 Our Boomers & Gen Y Research Study Qualitative Exploration Focus group discussions with Australian Boomers and Gen Y s, exploring key issues, attitudes and drivers of engagement with Super. Quantitative Measurement An omnibus survey with Australian Boomers and Gen Y s, 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 3 LET S TALK ABOUT BABY BOOMERS Reducing debt vs Saving for retirement

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5 5 Boomers perception of Super it s complicated Key Drivers Changing legislative landscape High aspiration for retirement Underlying concern that they will not have enough money Post and present volatility in Super performance and the general market Uncertainty of the benefits of time

6 6 First considered Super 42 years Boomers first seriously consider superannuation

7 PERSONAL AIMS FOR RETIREMENT 7

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9 9 Super to pay down debt 1 in 10 Boomers said they would use their Super to pay off a mortgage

10 10 Security High aspirations for retirement Flexibility

11 Building uncertainty and concern 11

12 WHAT DO BOOMERS EXPECT FROM FUNDS? 12

13 13 Boomers Boomers To grow my superannuation through smart investment 1st Investment growth is the priority To communicate my current balance and previous performance To educate me on the best options and choices of investments To provide me with financial planning advice To offer me insurance products such as life, income, disability 2nd 3rd 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: Boomers (n= 278)

14 14 They want contact Boomers 26% 30% 22% 1 in 2 Boomers want to be contacted by their Fund once every 6 months or more 4% 14% Other Never Once a year Once every 6 months Once every 3 months 3% Once a month Q5. How often would you like to be contacted by your superannuation fund? Base: Boomers (n= 278)

15 They want Education Webinars Seminars Personalised advice and invitations They do not want Apps or complex reading Funds are already providing these services and engagement points

16 16 They want Trust Key components Transparency Simplicity An established brand Expertise

17 17 Greater Engagement Interest in Super Reason for contacting Fund To check your balance 25% To access superannuation at retirement 22% 46% 35% 19% Other To get account details 18% 14% To change investment options 9% I am quite interested in superannuation and have compared the performance of my fund to other funds or chosen a specific I m not too interested in superannuation, but I skim the newsletters, magazines, or materials my fund sends me. Superannuation doesn t interest me. I have a super account that is paid into by my employer, but that s it. To get advice on investment options To organise the rollover of superannuation to another fund To change contact information To open an account when joining a new employer To get advice on insurance 1% 1% 9% 9% 7% Q2. Why did you contact Superannuation fund? Base: Boomers (n= 278) Q6. Which statement best describes how much interest you have in Superannuation? Base: Boomers (n= 278)

18 18 Key take outs 1. This is a time of major financial decisions to achieve a clean slate 2. Boomers have higher aspirations for retirement and greater life expectancy than their parents 3. Boomers feel like they are on a financial tight rope 4. Engagement is high and personalised education is wanted 5. Boomers want contact, but they don t want Apps 6. Super Funds are unlikely to be the Trusted Advisor for other financial services

19 19 LET S TALK ABOUT GEN Y The Messaging Wars

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21 21 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

22 22 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

23 23 24 years First considered Superannuation

24 24 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.

25 SUPER: WHAT S THE POINT? 25

26 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)

27 27 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)

28 28 21% 23% 16% 15% They are realistic about the amount they will need per year in 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)

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30 30 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)

31 31 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 herding cats! Mail SMS Yes Yes Gen Y change their work and their home address regularly, but they will never give up their mobile phone number or gmail account!

32 32 Key take outs 1. Gen Y s lack of 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, at 24 years old 4. Parents, Employers and Unions are key influencers in Super decisions 5. Perception: Super is boring.but money to live a good life is not. 6. Gen Y want contact, but in a relevant, personalised manner to them.

33 Will they engage without major behaviour change? 33

34 34 A FRAMEWORK FOR BEHAVIOUR CHANGE Understanding and Influencing behaviour

35 How do we judge the effectiveness of our marketing and communication efforts? 7 Cut through re-call? 7 Is it liked/engaging? 7 Providing new information? 7 Changing attitudes? 7 Encouraging people to talk about the issue? 7 Encouraging people to seek help/more information? 7 Encouraging people to think about changing their behaviour? 7 Encouraging people to trial a behaviour change? 7 Lasting behaviour change? 7 Intended behaviour 7 change?

36 36 Rejection Precontemplation Contemplation Action If Behaviour Change is the bottom line...we need to understand that people move through stages... Maintenance Based on work by Alan Andreason: Marketing Social Change (1995)

37 37 Behaviour is affected by: Attitudes Values Beliefs Information Knowledge Value Know Do Other influencing factors Source: Strategic Social Marketing: What we know about influencing behaviour: Lessons from the literature and the field Actions Behaviours

38 38 At each stage of behaviour different tasks are required... Rejection Increase awareness of costs/gaps/disadvantages of status quo Precontemplation Create awareness of ideal behaviour as relevant, desirable and accessible Contemplation Action Maintenance Promote benefits of ideal behaviour Reduce costs of ideal behaviour Increase positive influence of others Improve ability to act Reward and remind through experience Inoculation to competitive behaviours Based on work by Alan Andreason: Marketing Social Change (1995)

39 39 Moving from Pre-Contemplation to Contemplation Pre- contemplation Contemplation People in pre-contemplation are either not aware that the behaviour they undertake is undesirable or don t care. They have not thought about undertaking the preferred behaviour. The marketing task is to create awareness of the risks or negative consequences of the undesired behaviour and the benefits of undertaking the desired behaviour. The desired behaviour needs to be positioned as relevant, desirable and accessible for the target audience.

40 40 Moving from Contemplation to Action Contemplation Action People in contemplation are aware of the consequences of the undesired behaviour and are aware of the benefits of the desired behaviour but have not yet taken action. They don t know how to overcome the barriers or don t have the tools / support / confidence to do so. The marketing task is to promote the benefit of the desired behaviour to outweigh the perceived benefits of the undesired. Need to make it easy for people to trial the desired behaviour and then consistently adopt the desired behaviour.

41 Behaviour Change WORKSHOP 41

42 Let s create an ACTION PLAN 48

43 49 Best practice behaviour change Who? Let s answer 6 key questions Image? How/when? Each aspect has implications for all of the others Action? Reward? Sourced from Sutton, Balch and Lefebvre Public Health Reports Nov/Dec 1995 vol. 110 Support?

44 50 Influencing Voluntary Behaviour Change Requires An Exchange If I (action) instead of (competitive behaviour) I will receive (benefit). I know this will happen because (support).