Active Super kickstarts reward programBY ANDREW MCKEAN | TUESDAY, 21 JUN 2022 12:41PM
Read more: Active Super, Super Booster, Loyalty Boomerang, Alex Dunnin, Best Interest Obligation, Chantal Walker, European Union Data Protection Regulation, Rainmaker Information
Active Super has launched a Super Booster reward program to accelerate the growth of members' super balances.
The Super Booster reward program is a 'set and forget' tool for members to top-up their super balances with eligible retail purchases.
The reward program will apply to more than 250 retail partners across 2000 locations around Australia. Though, as the program grows in scale and popularity, the range of retailers will also increase.
The Super Booster operates by enabling members to receive a percentage of a purchases value added to their super balance when shopping. Current reward percentages range from 2% to 25% of the value of a transaction. Notably, the cash top-up is paid for by retailers, not members.
The Super Booster is available to all Active Super members upon nominating one or more debit or credit cards.
Active Super launched the program in partnership with fintech Loyalty Boomerang and is the only fund with exclusive rights to the program for 12 months.
On why Active Super chose Boomerang over other fintech players, Active Super chief member experience and growth officer Chantal Walker told Financial Standard: "Boomerang is a nimble start-up that is more agile in its approach."
"Boomerang offers the 'set and forget' option which means members don't need to go through an online portal to get the cash top-up. Their pricing is competitive, and they gave us exclusivity for 12 months."
Active Super estimated that the average member could add more than $150 to their balance annually through Super Booster. Over a 20-year period this would give retirees an estimated additional $5000 on their super balance.
Walker added: "We saw a real opportunity to build a much greater level of engagement with our members, especially women, around superannuation by rewarding them and making super contributions a part of their day-to-day lifestyle."
"Super has become very competitive and we believe it is vital to engage with members to make it much more than just a regular transactional relationship that people would typically have with their super fund.
"We are proud to be driving better retirement outcomes by encouraging more Australians to top up their super every time they shop. It's a chance for people with lower balances to contribute and get extra funds into their super."
Active's new loyalty shopping program is the latest example of boutique public sector funds' more active brand-building, Rainmaker Information executive director of research Alex Dunnin said.
Dunnin explained while super fund loyalty shopping programs have had mixed success over the years, this one operated by Loyalty Boomerang claims that when consumers who link their credit cards to its offers, sales to these consumers can potentially increase for retailers with or without an existing loyalty program.
"From information on the Loyalty Boomerang website, it appears it charges retailers associated with their programs an upfront capex fee for the app development and implementation, and a small ongoing fee tied to the number of active users." Dunnin added.
"In this way, Active Super claim their fund members incur no fees to participate in the programme, which is important given the trustees' Best Interests obligations.
"Active Super fund members need to appreciate, however, that they are joining a third-party loyalty programme, albeit one regulated through European Union General Protection of Data (GDPR) laws."
ARDEA INVESTMENT MANAGEMENT PTY LIMITED