What is the BBB?
The BBB stands for the Better Business Bureau. It is a non-profit organization that focuses on advancing marketplace trust between businesses and consumers. The BBB allows businesses to apply for accreditation by meeting certain standards and committing to follow BBB’s code of business practices.
What are the benefits of BBB accreditation?
There are several potential benefits for businesses that become BBB accredited:
- Increased customer trust and loyalty – Studies show that consumers are more likely to trust and patronize BBB accredited businesses.
- BBB seal for your website and marketing materials – Once accredited, businesses can display the BBB seal showing their commitment to ethics and building trust.
- Improved online reputation – The BBB provides objective reviews and ratings for over 5 million businesses. Good BBB ratings can help counteract negative reviews.
- Higher search engine rankings – Companies that display the BBB seal and have active BBB profiles tend to rank higher in search engines.
- Access to BBB advertising and marketing campaigns – Accredited businesses get access to customized BBB advertising and publicity campaigns.
Essentially, BBB accreditation signals that a business meets high standards and is transparent about its practices. This can improve consumer perception and set a business apart from competitors.
What are the requirements for BBB accreditation?
To become BBB accredited, a business must:
- Be operational for at least 6 months
- Agree to abide by the BBB Code of Business Practices
- Respond appropriately to consumer complaints
- Maintain at least a B rating with the BBB
- Pay accreditation fees
The business must also disclose important background information such as licensing, proper identification, business history, and advertising/sales practices.
The BBB has separate accreditation standards for specific industries such as auto dealers, movers, home improvement contractors, and charities. Businesses must meet all industry-specific requirements.
What are the costs of BBB accreditation?
The costs of BBB accreditation include:
- One-time processing fee – Ranges from $200 to $400 depending on business size
- Annual accreditation fee – Ranges from $340 to over $10,000 depending on business size and location
- Complaint processing fee – $70 for each complaint received against the business
There may also be optional fees for mediation/arbitration services if the business chooses to use them for complaint resolution.
So for a small to mid-sized business, expect to budget $500 to $1000 annually in BBB fees. Larger corporations pay more.
How difficult is it to get and maintain BBB accreditation?
Getting approved for BBB accreditation involves:
- Submitting an application proving you meet BBB standards
- Paying the accreditation fee
- Passing a vetting process by BBB staff
- Maintaining at least a B rating through ethical business practices
The initial accreditation process can take several weeks to a few months depending on the responsiveness of the business.
To maintain accreditation, a business must continue to resolve complaints from customers, avoid false advertising claims, disclose required information, and keep any government/industry licenses up to date.
Failing to meet BBB’s continuing accreditation standards can result in probation or possible expulsion from the BBB.
Overall, BBB accreditation signals a commitment to customer satisfaction and transparency. For conscientious businesses, maintaining accreditation is not overly burdensome.
Is BBB accreditation mandatory?
BBB accreditation is completely voluntary. No laws require a business to get accredited. A company can still operate and advertise normally without the BBB seal.
That said, some industry associations and government procurement processes encourage BBB accreditation. Consumers might also expect larger or more established companies to have BBB approval.
So while optional, BBB accreditation can bolster a company’s reputation and separate it from less credible competitors.
Can any business get BBB accredited?
The BBB has eligibility requirements that not all businesses can meet. Here are some key types of businesses that generally cannot obtain BBB accreditation:
- Businesses less than 6 months old
- Franchisees without separate branding from the franchisor
- Businesses undergoing bankruptcy or reorganization
- Non-profits other than charities
- Business soliciting exclusively over the internet/phone
The BBB also has standards prohibiting accreditation of companies involved in illegal activities, gambling, adult content, or tobacco and liquor sales.
Before applying, businesses should check if they fall under any prohibiting categories. Meeting eligibility requirements is the first step.
Can you advertise as BBB accredited without approval?
No, it would be unethical and illegal to advertise as “BBB accredited” without going through the official accreditation process.
The BBB regularly scans for situations where non-accredited businesses display BBB logos or claim false affiliation. Doing so can lead to trademark infringement claims and legal action from the BBB.
Consumers rely on BBB endorsement to mean a business achieved accreditation through demonstrated trust and transparency. Falsely claiming accreditation erodes that trust.
Is BBB accreditation necessary for a small business?
BBB accreditation is not mandatory for small businesses. Many succeed without pursuing accreditation.
However, there are benefits that make BBB approval worthwhile for some small companies:
- Raises credibility for newer businesses still building brand recognition.
- Signals commitment to customers for highly service-oriented businesses.
- Provides impartial feedback and ratings as small business marketing grows.
- Can give a competitive edge for businesses in crowded markets.
The choice comes down to whether the costs and effort of accreditation match the value of increased consumer trust and recognition in a small business’ market.
What are the alternatives to BBB accreditation?
For businesses questioning whether BBB accreditation is beneficial, some alternatives include:
- Monitoring online reviews on Google, Yelp, etc. Responding to customer feedback shows dedication.
- Seeking endorsements from established industry organizations, clubs, or associations when available.
- Highlighting expertise through certifications, awards, and media coverage on your website.
- Emphasizing customer satisfaction policies like warranties, guarantees, and loyalty programs.
Relying solely on self-promotion has risks though. Objective third-party validation from an entity like the BBB can go further in building consumer trust.
Can a business lose its BBB accreditation?
Yes, a company can lose BBB accreditation by:
- Dropping below BBB rating standards, usually below a B.
- Failing to resolve customer complaints adequately.
- Refusing to continually meet BBB accreditation criteria.
- Engaging in dishonest advertising or business practices.
Before revoking accreditation, the BBB will issue warnings and allow time for the business to correct any problems.
If problems remain unresolved, the business will be removed from the accredited list on BBB.org and lose privileges to use the BBB seal and services. Reinstatement may be possible but can take 6+ months.
Should I rely solely on BBB reviews?
While BBB provides useful objective ratings, consumers should not rely entirely on BBB sources when evaluating a business. Some additional steps for smart consumers:
- Research the company through multiple review sites like Yelp, Google, and industry forums.
- Verify licenses and certifications through government databases.
- Look for complaints at consumer protection agencies.
- Search news articles for any troubling incidents.
- Ask people in your network about firsthand experiences.
Multiple viewpoints reveal more than a single rating source. But BBB accreditation does indicate 360-degree vetting from an established authority.
Conclusion
BBB accreditation provides multiple benefits for accredited businesses by boosting consumer perceptions of trust and credibility. Approval must be earned through transparent practices and standards.
While optional and not free, BBB endorsement can be a worthwhile investment for many companies seeking to stand out and position themselves as ethical. This is especially true for service-oriented businesses that rely heavily on reputation.
Smaller businesses have more flexibility in evaluating if the cost and effort of accreditation make sense. Weighing alternatives like online reviews and direct customer satisfaction measures is prudent.
For consumers, BBB approval is a useful indicator but should not be the only factor in judging a business. Holistic research provides a fuller picture.
Overall, BBB accreditation standards reflect positively on businesses committed to openness and customer care. Maintaining accreditation keeps companies accountable through third-party oversight.