Consumers are demanding transparency around ingredients and product claims, regulators are increasing their activity, and pressure is mounting to compress product launch cycles. To address these concurrent business forces, companies across regulated industries are finding that establishing an efficient claims management process is a competitive advantage.
However, most organizations have a long way to go in this area and remain reliant on outdated, disparate and siloed claims management tools and processes.
In fact, 94% of companies are looking for a better way to manage claims.
These findings are just a small sampling from the new report - Product Claims Management – the Risk and Opportunity Cost.
The report, conducted by Hanover Research, surveyed 255 participants with director-level or above job titles working in Legal, Regulatory Affairs, Marketing, and Research & Development at consumer goods, cosmetics and chemical companies with at least $250 million in annual revenue.
In this post, we’ll take a closer look at three of the biggest survey takeaways.
1. Companies are spending more time on claims management tasks
While many departments are spending more time on product claims management, Marketing and Legal were singled out as being most frequently involved.
- In fact, 80% of marketers and legal professionals perform claims management tasks at least once a week.
- 70% are having to defend product claims weekly.
- 67% spend at least six months to bring a new claim to market.
Digging deeper into the data, almost one-third of all survey respondents said their biggest challenge was timely product claim review and approval.
This burden isn’t just falling on a few legal or regulatory experts. The majority of companies surveyed employ more than 40 people across marketing, legal, regulatory, and R&D to focus on product claim management tasks, with many employing significantly more.
This is complicated by the fact that most companies are relying on a loosely connected web of disparate tools and systems from spreadsheets and email to different CRM and database systems to manage the process instead of an all-in-one solution such as Veeva Claims. This creates silos between departments, delays time to market, and introduces significant risk since there is no single source of truth in the organization.
2. Significant opportunities lie in automating more elements of the claims management processes
With companies spending more time than ever before on claims management, it is no surprise that they are looking for more opportunities to leverage automation.
Larger organizations (more than $500 million in annual revenue) were most interested in automating process related to managing claims. This was especially true in the following areas:
- Tracking competitor claims
- Enforcing policies
- Legal clearance
- Claims substantiation
- Usage tracking
- Evaluating marketing assets
This type of time and resource-saving automation is simply not possible with the disparate mix of spreadsheets sheets and email most companies use to manage claims today. To seize the opportunity to automate and streamline elements of this process, market leaders are increasingly exploring purpose-build product claims management solutions.
3. Legal challenges can add up quickly
With increased consumer and regulatory scrutiny on product claims, legal challenges are costing companies a lot more time and money than just court fees and lengthy calls with lawyers. These challenges impact nearly every function from Sales and Marketing to Regulatory, Legal, R&D, Product Supply and Sourcing.
Faced with a claim challenge, companies often scramble to find the relevant substantiation and identify which packaging and marketing assets use a specific claim. This can result in increased employee hours, more claims testing, significant repackaging costs, product recalls, interruptions in supply, damages, and the cost associated with pulling advertisements where claims are referenced.
It seems like the larger the organization, the more likely they are to experience a significant legal issue. In fact, nearly 70% of companies with more than $1 billion in annual revenue have experienced at least one major claims issue.
Take the Next Step for Your Company
Investing in a best-in-class modern claims management solution allows organizations to harmonize the global claims management process from creation and substantiation to approvals and usage tracking in marketing assets - all in one application.
Eliminate manual handoffs, establish a single source of truth, and improve collaboration between Regulatory, Research & Development, Marketing, and Legal to bring new products and claims to market in less time and reduce risk to the business.
Want to learn more? Download a complimentary copy of this industry report, connect with a claims management expert to discuss your specific needs, or visit our site to learn more about Veeva’s Claims Management solution.