The superannuation industry has dragged its heels in catching the big-data trend and, in a fiercely competitive environment, super funds are now at risk of becoming extinct if they do not change their approach to understanding what their members want and need, when they need it, according to Mercer.
Responding to the increasing competition and disruption in the super industry, Mercer has launched a new data-driven analytics, marketing and strategy platform that has the potential to change the shape of the industry by driving fund growth and shifting the dial on a fund’s relationship with its members.
The new platform, Mercer Edge, will exponentially increase a fund’s understanding of its members. It will predict, in near real-time, members’ behaviours; put simply, it will change the member retention and growth trajectory of a fund.
Data analytics is not new, but the super industry has been slow to tap into the potential of it. The game has changed and for super funds to be serious and sustainable consumer businesses they have to catch up with the big-data and consumer trend, says Mercer.
Ben Walsh, Mercer’s Managing Director and Pacific Market Leader, said, “We have strategically been transforming our services to help our clients not only weather, but thrive in, this incredibly competitive environment and Mercer Edge is the perfect example of how we’ve dramatically redesigned the way we work to allow us to focus on activating growth for our clients.”
“Our point-of-difference is the horsepower of our actuarial expertise combined with our retail and consumer capabilities that sit behind Mercer Edge, generating predictive analytic algorithms and member insights that can reveal new opportunities for funds,” he said.
“Some super funds have made in-roads to improving their data-analysis and insights, but relative to many other industries, the super industry is behind and there is an opportunity to be captured here,” Mr Walsh said.
Mercer Edge provides super funds with a one-stop interactive view of member data directly from the Mercer data warehouse. It enables advanced segmentation of member bases, including: geo-demographic, behavioural, value based and psychographic models.
Mr Walsh added, “This level of insight enables funds to have the most relevant and personal conversations with members with more tailored offerings, which leads to stronger, more mutually beneficial member relationships.”
Edge also measures member satisfaction and retirement readiness using Mercer’s unique Retirement Readiness Index. Funds can use this information to help members take actions now that could improve their retirement savings
“Mercer Edge provides super funds with an easy to use roadmap for growth by enabling more relevant and personal communication between funds and members.” Mr Walsh said.
It has already been proven to add value to a fund when used to drive marketing campaigns. It led to an incredible 392% return on investment from a rollover campaign leading to stronger growth for the fund and doubled conversion rates for a financial advice marketing campaign, helping more Australians better prepare for retirement.
NGS have once again secured their position as an industry front-runner by signing up as the inaugural client of Mercer Edge. According to Chief Executive Officer Anthony Rodwell- Ball, Mercer Edge will provide NGS Super with a flexible platform to further enhance its position in the market
“The nature of our industry is rapidly changing and it is critical we remain relevant to our customers. With Mercer Edge, our focus on customer intimacy will be further strengthened; providing the capability to undertake sophisticated analytics that will provide our customers with tailored services and offers, as well as supporting a single view of our customers,” said Mr Rodwell-Ball.
Mercer Edge is now available to any super fund administered by Mercer.
Insights and analytics delivered by Mercer Edge include:
- Advanced segmentation models - geo demographic, behaviourial, value based and psychographic – and predictive analytic algorithms - enabling the most relevant and personal conversations and interactions between funds and members
- World class data visualisation offering hundreds of different views of data uncovering trends previously hidden with the ability to export directly into internal reporting frameworks
- User friendly data filters enable data to be viewed in 1000’s of customisable ways
- Detailed geographic mapping of membership bases
- Mercer’s unique Retirement Readiness Index Scores for individual members
Mercer is a global consulting leader in health, wealth and careers. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s more than 20,000 employees are based in more than 40 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With 57,000 employees worldwide and annual revenue exceeding $13 billion, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerAu