Current Events in October 2024

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2024

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      Starbucks will stop charging extra for non-dairy milk

      It’s among the changes the company is making to win back customers

      Starbucks is taking steps to win back customers who’ve drifted away over the years. For starters, the coffee chain will no longer charge extra when customers request non-dairy milk in their coffee.

      The change will take place on Nov. 7, when Starbucks launches its holiday menu. CEO Brian Niccol, who recently took the helm after a successful stint as CEO of Chipotle, said customers should be encouraged to customize their beverages.

      “Core to the Starbucks experience is the ability to customize your beverage to make it yours, Niccol said. “By removing the extra charge for non-dairy milk we’re embracing all the ways our customers enjoy their Starbucks.” 

      According to Starbucks data, non-dairy milk – whether its soy milk, oat milk, almond milk or coconut milk – is the second most requested customization from Starbucks customers. Number one is a shot of espresso.  

      Starbucks estimates that dropping the extra charge will have an impact on customers’ wallets. It says almost half of Starbucks current customers who pay to modify their beverage at company-operated stores will see a price reduction of more than 10%.  

      Back to basics

      “I made a commitment that we’d get back to Starbucks, focusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas,” Niccol said. “This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”  

      Niccol announced the change during his first Starbucks earnings call as CEO and outlined some other changes he plans. Among them is a return to the coffee house vibe.

      At the same time, Niccol said he wants service to be faster. He has set a goal of having every drink delivered within four minutes of ordering, a goal he says is only now met about half the time.

      On the call, Starbucks announced its earnings for its fiscal fourth-quarter, showing transactions were down 10% for the period. It also reports a decline in traffic across all dayparts.

      Starbucks is taking steps to win back customers who’ve drifted away over the years. For starters, the coffee chain will no longer charge extra when custome...

      Auto insurance repair times down but costs up, J.D. Power finds

      Claims process "the moment of truth" for consumers and their insurers

      Auto insurers have been facing challenges since the pandemic, particularly with higher repair costs and longer repair times. But things may be looking up, at least as far as repair times go.

      According to the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, repair times have improved, dropping from an average of 23.9 days to 18.9 days later in the study period.

      On the downside, repair costs have increased by 26% in the past two years, leading to a 15% rise in premiums.

      “The claims process is the moment of truth for auto insurance customers, so when they experience rate increases and then have a claim with longer-than-expected repair times and other inconveniences, their overall trust in the brand is greatly diminished,” said Mark Garrett, director of global insurance intelligence at J.D. Power. 

      "However, premium increases have created a new challenge for insurers as trust is eroding and affecting the way customers view their claims. There are still many challenges the industry needs to navigate to maintain customer loyalty,” Garrett said.

      These rising costs have hurt customer satisfaction, especially for those who experienced premium increases before making a claim. Trust in insurers is dropping, with 80% of customers who had bad claims experiences saying they’ve already switched or plan to switch providers.

      While digital claims processing is improving customer satisfaction, older generations still prefer to handle claims through more traditional methods like phone calls. Good communication, especially making it easy for customers to reach insurer representatives, remains crucial to a positive claims experience. 

      Insurance companies ranked

      The study ranked NJM Insurance Co. highest for overall customer satisfaction, with a score of 782. Amica (746) ranks second and Erie Insurance (733) ranks third.

      The U.S. Auto Claims Satisfaction Study was redesigned for 2024. Scores are not comparable year over year with previous studies. The 2024 study is based on responses from 9,725 auto insurance customers who settled a claim within the past nine months prior to participating in the survey.

      It measures customer experience across eight core dimensions (in order of importance): trust; fairness of settlement; time to settle claim; people; communication; ease of resolving claim; ease of starting claim; and digital channels. The study was fielded from October 2023 through August 2024.

      Auto insurers have been facing challenges since the pandemic, particularly with higher repair costs and longer repair times. But things may be looking up, ...