The way KiwiSaver works is customers make contributions either directly or via their employer, which are then deducted from their pay and invested in a fund the customer has selected. Provided a customer has been in the KiwiSaver Scheme for five years, they are eligible to draw down their savings at age 65.
A considerable percentage of AMP KiwiSaver Scheme customers withdraw all or part of their investments in the first 12 months after they turn 65, with the majority of these customers likely to be transferring money to the banks.
This is due to a strongly held belief that KiwiSaver Schemes are great for long-term retirement investments but the big banks are the experts at managing your daily banking needs.
To stem the flow of valuable customers moving to the banks, something was needed to change customer perceptions from believing only banks provide better, safer returns, then educate them on AMP’s offer and show how to maximise their savings growth.
It was not an easy task on a shoestring budget and facing fierce competition from the big banks.
Post campaign results indicate a 38.3% reduction in churn. Not only was the flow stemmed, but the flow of the funds was effectively redirected from the banks back to AMP.