Consumer packaged goods companies are facing many challenges, not the least of which is regulatory compliance. How can you mitigate your risk, reducing fines and litigation costs?
Today's customers are looking for unique and authentic products and experiences in an increasingly fragmented marketplace, driving large organizations to undertake costly restructuring efforts and SMBs to spend a small fortune on multi-channel marketing initiatives.
In addition, consumer packaged goods companies are supporting a growing number of communication channels. Delivery and marketing are becoming more and more digitized, providing companies with an ever-growing repository of customer data that can be used to inform decisions on purchasing, staffing, and service escalation.
Amid all this, many global CPG brands are looking for smarter ways to comply with regulatory communication requirements. They're already spending millions on training for their contact center agents -- an average of around $20,000 per employee per year -- not to mention one third of their profits annually on litigation. These companies often have trouble with their current customer relationship management systems, struggling to maintain correct, accurate information for agents to use and to capture what agents actually say to customers.
On average, Fortune 500 companies spend one third of their profits on litigation.
CPG companies often believe that constant retraining and expensive litigation are just a cost of doing business. But what many fail to consider is the potential cost savings and risk mitigation that come from precise agent guidance, an accurate audit trail, and a system that delivers the right answer every time.
The challenge of regulatory compliance is enough to keep company leaders (like you) up at night, and enough to keep the training team on their toes. In addition to the financial costs, there's the negative word-of-mouth associated with bad press. For large brands that already face a certain amount of public distrust, negative publicity can often be especially harmful. For example, one million people view customer service-related tweets every week, of which 80% are critical or negative in nature. Plus, it takes an average of 12 positive experiences to make up for one unresolved negative one.
One million people view customer service-related tweets every week, and 80% of them are critical or negative.
If your CPG leverages technology to guide agents, document communication, and report on customer interactions with confidence, you will have more control over your risk of non-compliance and negative press.
The resulting cost savings are significant. For instance, Fortune 500 companies collectively spend $210 billion per year on litigation -- $420 million per firm. If the ability to identify and prevent potential issues can reduce your risk by even 1%, your CPG company would save $4.2 million annually.
Here's how Astute Solutions helps CPGs reduce compliance risk and nip potential issues in the bud: