Customer Remediation

In today's fast-changing world, it is important to innovate in order to continue to meet customer wishes. At the same time, problems from the past in the form of remediation cases or compensation processes have a big impact on customer confidence. Companies and government agencies struggle to find the right way of handling these cases. Issues of this kind arise from infringements of regulations or duty of care, operational or IT errors or other statutory compensations such as for earthquake damage or the recent Covid-19 support measures from the government.

Various examples of previous remediation cases and compensation processes demonstrate the high degree of complexity in compensating customers and citizens and/or remediating current products or cases. Firms and government agencies will continue to be faced with event-driven errors that require corrective measures in the future. Often, an ad hoc and reactive approach is taken to the handling of remediation cases, resulting in dissatisfied customers or citizens, high costs and longer processes.

Acting with integrity and transparency are important qualities that play a role in customers’ experience and degree of loyalty towards companies[1]. Customer remediation offers companies and government agencies the opportunity to transform negative customer experiences into positive memories. Our research[2] shows that negative customer experiences have six times as much impact on future customer behaviour and annual sales figures as positive experiences. Rapid and adequate resolution of errors from the past is essential for companies in order to win or win back the trust and loyalty of customers.

Based on our cross-sector experience, there are various factors that contribute to the complexity of the remediation case or compensation process. Examples are a lack of historic data, the need for non-regular calculations and uncertainty around legal and other standards. In the context of typically high and escalating pressure from stakeholders to quickly deliver the right compensation or remediation, an effective approach is essential.

In recent years, KPMG has helped various companies and government agencies with a number of large-scale and complex compensation processes. To do so, we use a proven approach supported by standardised technology. If you would like more information or you would like to know what we can do for you, please feel free to contact us and/or download the brochure.

[1] 2020 NL Customer Experience Excellence report

[2] KPMG Nunwood