The Council of Better Business Bureaus: Taking Care of Business

By Paige H. Muller

Here's a simple fact: No matter who you are, a multimillion dollar advertising campaign is worthless without marketplace credibility and consumer trust.

In today's scandal-filled society, in which "Enron" is becoming an adjective for corporate misconduct, electronic direct response marketers need to be creative and innovative, yet they must do so without deceit.

Fairness and honest business practices are, of course, enduring principles but the seismic shift that led the Democrats to win both the House and Senate in the November mid-term elections points to an even greater call for the DR industry to get its house in order. Pundits and policymakers predict that when the new Congress convenes, marketers can expect: renewed scrutiny on media as an influencer of consumer behavior, stepped up regulatory practices and sharpened debate on issues that affect advertisers.

For DR marketers, this must feel like déjà vu all over again. This time around however, the industry has made great strides in terms of building goodwill capital through ERA's Electronic Retailing Self-Regulation Program (ERSP), which is administered by the Council of Better Business Bureaus (CBBB) to ensure independence and fairness. Together, ERA and the CBBB are working to advance the industry's trustworthiness and credibility among consumers and on Capitol Hill.

The CBBB, the international organization for 129 Better Business Bureaus in the U.S. and Canada, is committed to building trust between businesses and consumers, strengthening consumer confidence and contributing to a flourishing marketplace. The CBBB is a partner in the National Advertising Review Council (NARC), which sets the policies and procedures for the Council's advertising self-regulation units, of which ERSP is a part.

ERA spoke with CBBB President and CEO Steve Cole about the organization's goals and strategies to meet the challenges of a marketplace that has changed in ways unimagined when it was established in 1970, and the changes he sees for the ERSP and other NARC self-regulatory efforts.

ERA: A year has passed since you where named president of the Council. What have been the biggest challenges you faced and accomplishments you had in year one?
When taking the helm at the Council last year, I felt distinctly optimistic about our future and confident that our Better Business Bureau system was primed for change and progress. Today, I feel even more confident and optimistic about where we are going as an organization based upon what I have seen, heard and felt this past year.

I have seen spirited debate and cooperation, heard challenges and encouragement, and felt enthusiasm and electricity throughout our organization for the opportunities ahead of us. Over the past 12 months, I think the BBB system has recognized that we must make changes, that we can grow, and we need to work together more effectively to better serve businesses and consumers. In the near future, I think you will see a more cohesive BBB system, tightly focused on enhancing our position as the leader in advancing marketplace trust.

While we do cite more than 90 million instances of service across the BBB system last year, one of our biggest challenges and biggest accomplishments were one in the same--strategic planning. Our research shows that the BBB system is more relevant than ever, as consumer confidence is declining and marketplace trust is a continuing news story. At the same time, we have more competitors than ever in the information and trust marketplace, in large part because of the availability of web-based services for the public that offer serious challenges to our position, but also offer significant opportunities for our own growth.

What we have developed is a roadmap aimed at building consumer confidence in our trustworthy members. Our roadmap is far more market-oriented than our system has ever been before, with core tenets that commit us to: leveraging the power of the BBB system to work and deliver value as one; removing barriers to participation and engagement for both businesses and consumers; aggressively pursuing diversification of our membership; improving the quality and relevance of our products and services; and increasing BBB system visibility to create more awareness for and understanding of our role in shaping and guiding marketplace ethics.

ERA: As you look to the future, what can consumers and businesses look for from the BBB system in the coming year, and how do you see the BBB system evolving over the next five years?
I want to emphasize that our plan--its mission and vision, and all of the underlying strategic directions--is centered on "trust." The BBB system can be trusted by our business and consumer customers to be fair and transparent and to deliver the highest quality information, products and services. In addition, our members can be trusted and relied upon by their customers, partners and employees. We believe that in current and future business environments, trust matters--trust will never go out of style.

We have outlined a number of first-year priorities for our strategic plan implementation, but there are three in particular I want to highlight.

First, our newly adopted organizational mission is to be the leader in advancing marketplace trust. The BBB system will re-brand and reposition ourselves in the coming year in line with that mission. More than just logos, taglines, colors and images though, consumers and businesses can look for action in the form of new products, services, capabilities and functionality from the BBB system--but most importantly, a new, updated attitude that will determine who we partner with, and the issues we choose to engage in. At bottom, we will deliver on a strategy that recognizes that our value predominantly relies on our ability to drive customers to trustworthy businesses.

Second, we are currently in the process of testing and evaluating a new system for rating businesses. The new ratings system will represent a departure from our long-standing practice of assigning "satisfactory" or "unsatisfactory" ratings to businesses. We anticipate adopting some form of a letter-grade rating system in which businesses would receive marks ranging, for example, from A (best), to F (worst). This will better serve customers, and better reward those companies (members or not) who best exemplify "trust" in the marketplace.

Third, the key underpinning for both our re-branding and ratings systems efforts is technology improvement. We will be revising our BBB system web presence with an updated look and feel on both the www.bbb.org site and on our local BBB sites across North America. As well, consumers will benefit from greater functionality via a new online complaint form and a more user-friendly and capable search tool.

Other items that consumers and business can look for in the coming year include a continuation of our staple consumer education programs, which will include both a new book series and video series. Also, our Wise Giving Alliance is partnering with local Bureau charity review experts to identify opportunities for expanding charity review across the U.S.

The coming year holds a lot of promise for the BBB system through the value we will provide and create for consumers and businesses. Five years from now, I am confident both groups will see a BBB system that is leading the drive for an ethical marketplace, where buyers and sellers can trust each other.

ERA: Given the Council's role in implementing the Electronic Retailing Self-Regulation Program (ERSP), and with the naming of former FTC stalwart Lee Peeler to lead the National Advertising Review Council (NARC), what are your impressions of the ESRP to date, and what changes do you envision for the ERSP and other NARC self-regulatory efforts?
The ERSP program is a terrific success story, in large part because of the support of the ERA membership. We know, through our 35 years of experience with advertising self-regulation, that industry commitment to the process is one critical factor in its success.

In its first two years of operation, ERSP has issued 102 decisions and has established a compliance rate well over 90 percent. ERSP also is seeing an increase in competitive challenges. These developments both demonstrate a high level of commitment on the part of the industry to making self-regulation work, and are a testament to the professionalism of the ERSP staff and the growing confidence of industry members in the fairness and objectivity of ERSP decisions.

As the Federal Trade Commission's associate director for advertising practices and later as deputy director of the Bureau of Consumer Protection, Lee has closely observed the development of direct response advertising since the early 1980s.

Lee's involvement with the ERSP certainly pre-dates his joining the BBB system team in September. He has consistently been an outspoken advocate for adoption of a strong, independent, self-regulatory program in the electronic retailing industry, and felt that ERSP, which was based on the BBB/National Advertising Division (NAD) model, fit that bill.

As the new president of NARC, he's committed to capitalizing on that momentum to ensure the program's continued success. I know he looks forward to working with the ERA leadership and members to make the program even more active, effective and responsive.

Ultimately, the ERA and CBBB leaders want to elevate the ethical business climate for the entire direct response industry. Together, the two organizations have made great strides in improving both its public and political perception, but better simply isn't good enough. Why not push it another step higher?

Paige H. Muller is ERA's vice president, marketing communications. She can be reached at (703) 908-1020, or via e-mail at pmuller@retailing.org.