Why the BBB Changed Its Rating System
A conversation with the nonprofit about its new letter grades, in what manner the process works, and how to make it work for your small business
By Karen E. Klein
The Better Business Bureau is handing out report cards to businesses, and acquisition a excellence grade can help differentiate a feeble-minded firm from its competitors. Until this year, the BBB gave companies both a "satisfactory" or "unsatisfactory" label, says Steve Cox, vice-president of communications for the nonprofit’s general umbrella organization, the Council of Better Business Bureaus. He spoke recently to Smart Answers columnist Karen E. Klein about by what mode the new system of letter grades can provide consumers with confidence in an opposite direction a small business. Edited excerpts of their conversation follows.
Q: The BBB Reliability Report now goes beyond the make a pass/fail system in quest of its assembly integrity ratings to contain a epistle grade, from A+ into a denser consistence to each F. Why make that make different?
A: We felt like our ratings weren’t giving enough accusation. We decided to change with the times so we could give consumers a better snapshot of a trustworthy business. Consumers want greater degree of than marketing spin or a few comments about a business posted on the Internet. And rightly so, because given tough economic conditions, they literally can’t afford to make bad buying decisions.
Q: Why should a small-business owner go through the process of acquirement rated by the BBB?
A: Getting the letter grade helps differentiate a business and it helps consumers find a trustworthy business more easily. There are so multitude sites online these days that consumers are using to make their purchasing decisions. If you’re not rated, it’s almost like you slip on’t exist. And small companies penury to do everything they be possible to to differentiate themselves from their competition.
Q: A lot of those consumer review sites include slams on individual businesses that may not be justified, bound can be obliged a big effect on sales.
A: Absolutely. That’s why our grading system is based on a set of objective criteria and standards developed during the 100-year life of the bureau. We be delivered of 16 elements we evaluate, weighted based on importance. It’s a very pretty good, objective ratings method that is standards-based and fact-based, not opinion-based.
Q: How would small-business owners get their companies rated from one side your system?
A: Just go to our main Web site, type in your Zip Code and you’ll get the page for the BBB in your area. Contact them and ask them to get ready a rating for your business. You don’t regard to have being a member to answer the purpose that; We be seized of more than 4 million business ratings in our database. We also let consumers initiate the process of rating a company, or filing a ail.
Q: What’s the process of the ratings system?
A: The business fills away a standard business questionnaire, including questions respecting the kind of business, how long it’s been operating, what kind of licensing it has, and whether that grant authority to has at any time been hanging. There are 16 elements that go into the letter grade that’s produced. The BBB takes that information, assesses it, plugs it into a ratings formula and generates a reliability report through a rank associated with it.
Q: Is the rating based just on self-reported information, or is there confirmation that you do?
A: We establish the truth of the information provided and validate it through cross-checking information we engender from local, state, and federal agencies. We also check through other agencies to find complaints that may have been filed in requital for the business.
Q: How long does it take to beget a business rated?
A: It depends on the mass of requests we get, but typically it’sitting apparently six to eight weeks.
Q: How can small companies that get merciful ratings use them strategically in their marketing and sales efforts?
A: We encourage companies to advertise their alphabetic character grade in their marketing and in their matter. Be over-weening of it! Mention it to your customers and potential customers. Sometimes consumers are more wary of small businesses that they don’t know in the same manner with well as the larger brands. Getting a good grade can really help.
We likewise parallel them to take the next step and become an accredited member of the BBB.
Q: What does that involve?
A: It’s a more thorough evaluation and a more in-depth process. Accredited firms sign a contract that says they agree to adhere to BBB standards, including resolving consumer complaints with BBB. It involves a fee that varies, depending on the size of the business and other factors.
