2009 brought more focus on businesses’ reputations

Every once in a while I head out of my corner office into the place where all the work is really done at the BBB. Like most managers, I can get way too far removed from why we are here, and I need to gently remind myself. So I sit down and answer the public phones for an hour or so. Then I clearly recall why more than 610,000 folks called on the BBB’s information last year to help them make decisions. And that is just our office; nationally the numbers for 2009 broke all records.

Recently a run-of-the-mill call turned into an education for both the caller and me. She had secured two estimates on a furnace replacement, and then called the BBB to check out the two companies. Smart lady. Both companies had good grades, so she went on to tell me about a better warranty on the product carried. As we talked, I suggested we check the ratings for the manufacturers, because a warranty is only as good as the company behind it. What an eye opener. The one offering the exceptional warranty had an F grade for a pattern of complaints about warranty problems and for unanswered complaints. We were both happy our search went past the company selling the product to the product itself.

That situation is actually more typical than most buyers realize. A company gets you in the door with lower prices and a better guarantee, but down the road their promises are not fulfilled. That is why you need to search a little deeper.

2009 was quite the year in the world of business. Trust fell to a new low. People were spending, but a whole lot more carefully, and more clients were looking for a strong personal relationship to ease them through this storm. So I took a look at which industries saw increases in prepurchase information requests. Those not in the top 25 industries people asked about in 2008, but which were in 2009:

•Payday lenders

•Accountants-certified public

•Bookkeepers

•Real estate services

•Time-share marketers

Those which saw double-digit ranking increases from 2008 to 2009:

•Credit and debt consolidation companies

•Banks

•Movers

So more people are asking about these industries before they do business – logical in many areas, such as banks. When the news is full of bank failures, people really started checking their bank, and if a decision to move to another bank was made, they looked before that move. Why accountants and bookkeepers moved up in such big way, I’m not sure.

What about complaints? Resolutions in 2009 fell to 70 percent, from 75 percent, in most cases because the company went out of business and did not respond to a complaint.

But there were three industries that made the top 25 list for complaints in 2009 that were not there in 2008: payday lenders, motorcycle dealerships and dentists. What an odd bunch!

Apply 2 Save, the Hayden mortgage modification company, really skewed the statistics with 229 complaints and 3,500 inquiries in 2009. Quite the numbers for a company that closed in May and saw the Idaho Attorney General issue a cease-and-desist order in June.

Other industries in the top 25 for complaints (as they are most of the time):

•New and used car dealers

•Contractors

•Car repair

•Real estate management

•Furniture retailers

•Hotels and motels

•Cell phone companies

Companies that do a lot of business on the Web really saw increased consumer interest, and the reports on retail sales online over the holidays echo that climb. The interactive BBB Accreditation Seal that companies display on their Web sites saw just over 165,000 clicks in 2008 and almost 303,000 in 2009. Wow.

Our business has changed, too. About 98 percent of the BBB’s information is delivered over the Internet. Yes, we still answer the phones every day and help people find electricians, financial planners and dentists, but the majority of potential customers use Google to find businesses and the BBB. That is good for all of us, because competition is good just as long as it is honest, fair and ethical.