2013 Year In Review Growth and Expansion westernmichigan.bbb.org

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1 2013 Year In Review Growth and Expansion westernmichigan.bbb.org 2013 Executive Committee Gary VanderVen / Amway Corporation (Chairperson) Eric Mills / Huntington Bank (Past Chairperson) John LaBarge Jr. / Owen-Ames-Kimball Co. (Treasurer) Scott Hill / Varnum, LLP (Chairperson Elect) Larry Andrus / Trivalent Group (Secretary) 2013 Board of Directors Bill Boss / Fifth Third Bank Randy Brink / Kent Companies Darrell Burke / Darrell Burke Construction Kathy Crosby / Goodwill Industries Vonnie Herrera / Grand Valley State University Rob Keller / Keller Ford - Kia Terry Reese / DK Security David Sayfie / AXA Advisors Brian Steketee / Agent-X Laurie Walter / Whirlpool Corporation Ron Wierenga / Plante & Moran, PLLC Steven Wolfe / Steelcase, Inc. James Peterson (Counsel) / Miller Johnson 2013 Educational Foundation Board Quincy Williams / Grand Valley State University Marcie Lewis / Ronald McDonald House Dale Rietberg / Varnum, LLP Brian Jackson / Cornerstone University Kari Overweg / West Michigan Document Shredding The following financial information is preliminary. It will be updated in May of 2014 when tax information has been filed with the IRS and an accounting review has been conducted. Renewal Income: $886,459 New Accreditation Sales: $164,371 Other Income: $151,067 Total Income: $1,201,897 Program Services Expenses: $1,030,072 Other Expenses: $113,927 Total Expenses: $1,143,999 Net Income: $57,898 Better Business Bureau Serving Western Michigan 2627 E Beltline Ave SE, Ste 320 Grand Rapids, MI Phone: Toll Free: info@westernmichigan.bbb.org VISION An ethical marketplace where buyers and sellers can trust each other. MISSION To be the leader in advancing marketplace trust.

2 A Letter From The President Your BBB is honored to report to you its community engagement and progress in Our team is growing significantly to serve West Michigan. In our area, paid staff has grown from 7 full-time team members to 10 full-time, 5 part-time, and 15 volunteers/interns. Plans in 2014 center on a newly designed website, providing increasing value for Accredited Businesses and Charities, substantial growth of investigations, increasing the number of participating Accredited Businesses and Accredited Non-Profits, more community events, regional engagement throughout our 38 county area, training programs, and so much more. On a national and international level, the BBB is growing in relevance and impact. The volume of traffic on the bbb.org website has grown to be among the leading websites in the world. BBB.org has ranked as high as 274, and is ranked 284 of all websites in the United States as of 3/10/14. This compares to 572 for Angie s List, and 847 for Consumer Reports according to Alexa as of 3/10/14. Looking back on 2013, here are some key accomplishments: Business Reviews with vital information about Western Michigan businesses and non-profit organizations are provided to the public at their request. The number of Business Reviews requested through the westernmichigan.bbb.org website has increased in two years from 452,673 to 836,536, over an 83% increase. Accredited Type of Business Rosters of Accredited Businesses have been provided to the public at their request, growing from 87,233 in 2011 to 169,126 in That is a 94% increase! More than 6,000 Complaints were handled through our BBB, with an 82% satisfactory resolution rate. The average complaint required one day to be processed into the BBB system, and 28 days to reach resolution. 156 Advertising Reviews were conducted, resulting in written communication processes with businesses to resolve advertising related issues. 38 Investigations by BBB staff delved into patterns of complaints or concerns about business activities, many leading to press coverage and some to government action. 3,409 Businesses are Accredited by the BBB Serving Western Michigan Businesses are approved to use the BBB Dynamic Seal, compared to 620 on January 1, 2012 an increase of 138%. 8,275 consumers clicked on equote for referrals in 2013, compared to 214 in 2011 and 2840 in equote usage by consumers has increased nearly 40x in two years! 23,820 consumers clicked on company URL s from the BBB website in 2013, compared to 12,547 in 2011, an increase of 90% in two years. Mobile users of the BBB website increased from 132,498 in 2012 to 207,865 in That s an increase of 56% in one year s were sent to businesses concerning a sales lead in 2013, compared to 254 in 2011, an increase of 8.7x. 84.2% of Accredited Businesses renewed their accreditation in BBB news media stories in the Grand Rapids/Kalamazoo/Battle Creek market, Traverse City market, and the Lansing market were consistent and impactful in shining a spotlight on poor business practices, and warning the public of possible problems. Website visitors increased to 2,947,030 visits compared to 1,597,550 in 2011, an increase of 84% in two years. Total page views totaled more than 4 million. Complaint Detail Publishing began in 2013, where all qualifying complaints are available to view on the BBB.org website, along with the business response.

3 Program, Outreach, Operations and Community Impact Growth in 2013: 1. Torch Awards The BBB Center for Character Ethics sponsored The Torch Awards for Marketplace Excellence in conjunction with the Grand Rapids Economic Club. With nearly 650 in attendance, RoMan Manufacturing of Grand Rapids, Springfield Inc. of Kingsley, and Catherine s Health Center of Grand Rapids were honored as Torch Award winners. Judging for the awards was done by an independent committee of community leaders. 2. Center for Character Ethics Staff Member Lynne Pope worked with the BBB Educational Foundation to develop the Partners In Ethics Program. The initial training sessions will be conducted early in 2014, providing leaders in business and non-profits the knowledge and tools to make their workplaces more successful through best leadership practices. 3. FINRA BBB Partnership More than 18 presentations were provided to more than 400 consumers on smart investing skills and how to detect investment schemes, scams and frauds. The BBB also gave away copies of a DVD, Trick$ of the Trade: Outsmarting Investment Fraud, an hour-long documentary that originally appeared on PBS and was recognized by Kiplinger s Best of Everything. 4. Charity Review Staff members Melissa Brewer and Shelby Creps are enhancing the quality and quantity of Charity Review reports available to the public, with the goal of making our BBB Charity Review the most useful and respected site available for non-profits to provide transparency about their operations to the public. The BBB published its Fall/Winter Guide to corporate and personal giving, providing information about area non-profits to 4,000 donors and business leaders. Melissa spoke in front of non-profit leaders at an informational session provided through Beene Garter, and participated in a workshop for non-profits provided by Parrish Consulting. 5. Compassion I.T. Pantry BBB Board Member Larry Andrus, and BBB President Phil Catlett volunteered along with a number of Trivalent staff members and other community leaders in brainstorming and judging Trivalent s Compassion I.T. $50,000 award to area non-profits. Dozens of non-profits entered, and 3 were awarded significant information technology assistance. Catherine's Health Center was the recipient of the main award valued at $30,000, Gilda's Club received approximately $15,000 and Degage received $5,000! In 2014, efforts are underway to grow the Compassion I.T. pantry among many area I.T. providers to award free assistance to worthy non-profits. BBB s Charity Review program will be integrated into the qualification process. 6. BBB Foundation Board The Board of Directors of the BBB appointed a separate Board of Directors to oversee the work of the BBB Foundation. This 501 c-3 Board will provide guidance and governance to the efforts of the Foundation, which is likely to grow substantially in the next few years. 7. Web and Background Reviews Each new Accredited Business applicant received a website review as part of their accreditation process, in addition to licensing and background checks. These standard processes assist the BBB in helping well-intended businesses to incorporate transparency and best practices. They also keep unqualified businesses from becoming Accredited. 410 new applicant company websites were reviewed. Website reviews are also conducted annually on current Accredited Businesses for approval to display the BBB Dynamic Seal. 1,258 current Accredited Business websites were reviewed in Annual Accredited Business Updates Each renewing Accredited Business is required to update their business information, meaning that approximately 300 updates are requested from these businesses each month. 9. License Reviews Each new and renewing Accredited Business is required to meet state licensing standards. BBB staff reviews each license required with the state to assure that our AB s are meeting state standards. If proper licensing is not held by the business, they are educated in how to go about meeting state standards. If the business does not do so, BBB Accreditation is rejected or revoked. 10. Volunteer Program - Volunteer Program Director Kathryn Crawford developed intern and volunteer programs at the BBB that now involve advertising review, arbitration, ask an attorney, charity review, ethics, mailings, social media marketing, office support, business mediation, and more. Volunteer/Intern recruitment postings are listed on the websites of 10 local colleges- universities, United Way s Volunteer Center, and BBB team members attended the GVSU Non-Profit Volunteer and Internship Fair. 11. Search Engine Optimization and Accredited Business Directories Bizzspot is a company that specializes in assisting businesses in improving search engine optimization and providing directories of BBB Accredited Businesses for consumers. Approximately 51 Accredited Businesses have Bizzspot search engine optimization, and 25 maintain business list premium placement. 12. Ask the Attorney Program An exclusive benefit for BBB Accredited Businesses providing free expert legal advice to common legal questions. More than 20 attorneys are offering their services. 13. Free Shred Days In the spring and the fall, BBB staff members spread out across our region to provide free document shredding in association with area businesses and organizations. Nearly 50,000 pounds of paper were shredded through partnerships with these shredding companies: GT Profile in Traverse City, West Michigan Document Shredding in Grand Rapids, Data Guardian in Kalamazoo, Advanced Document Destruction in Muskegon and Holland, and Shred-It in Battle Creek. We provided shredding drop off opportunities at: Babbitt s Sports Center in Muskegon, Consumers Credit Union in Portage, Northgate Appliance in Holland, GT Profile in Traverse City, Holy Spirit Church and Calvary Church in Grand Rapids, Hinman Company (Stadium Shoppes) in Kalamazoo and Oshtemo Charter Township. 14. Radio in Grand Rapids The BBB steadily educated the audience of WOOD AM-FM, WTKG, and WCSG 91.3 with 15 second messages in morning and afternoon drive. 15. West Michigan Whitecaps The BBB logo was placed prominently on the old-fashioned scoreboard in left field for every game and event at Fifth Third Ballpark. 16. Grand Rapids and Holland New Car Dealers Associations BBB Team Members worked with area car dealers to review and update the Automotive Advertising Standards. Revised guidelines were adopted in 2013.

4 INQUIRIES Pre-Purchase Reporting Most calls to your BBB are pre-purchase inquiries seeking reliability reports on area companies. These callers are seeking assurance that the company they are considering spending money with has no unresolved complaints or a history of unethical practices in advertising or selling of their products and services on file at the BBB. In 2013, your BBB provided information in response to 836,536 inquiries about local companies. Included in this statistic, 169,126 consumers requested we provide them with a listing of Accredited Businesses in a certain Industry. Miscellaneous inquiries such as general advice reports, agency referrals, BBB referrals and equotes totaled 8,783. To verify a company s BBB Accreditation, 13,288 consumers clicked on a BBB Dynamic Seal from the company s website. Most Complained About Industries 1. Appliances - Major - Wholesale & Manufacturers 2. Manufacturers & Producers 3. Insurance Companies 4. Auto Dealers - New Cars 5. Magazines - Subscription Agents 6. Vitamins & Food Supplements 7. Hotels - Reservations 8. Health Clubs 9. Labor Posters 10.Furniture - Retail Most Inquired About Industries 1. Multi-Level Selling Companies 2. Contractors - General 3. Heating & Air Conditioning 4. Auto Dealers - Used Cars 5. Roofing Contractors 6. Novelties - Retail 7. Insurance Companies 8. Auto Repair & Service 9. Plumbers 10.Construction & Remodeling Services COMPLAINTS Dispute Resolution Services BBB processed 6,231 complaints during the year. It should be of interest to both Accredited Businesses and consumers to know that BBB Accredited Businesses had a settlement rate of 99.90% in By comparison, Non-BBB Accredited Businesses had a lower resolution rate of 65.92%. Your BBB delved into patterns of complaints or concerns about business activities by conducting 38 investigations in BBB proactively worked with local companies to promote ethical advertising practices by conducting 173 Ad Reviews. Your BBB also provides service for the AUTO LINE program which concentrates on the Michigan Lemon Law guidelines. In 2013, the BBB conducted 11 AUTO LINE and non AUTOLINE arbitrations.

5 RESOURCES Internet at a Glance From the website, consumers may search a business by category or name and read a specific company report. BBB Reports on Accredited Businesses provide important information about a company s past marketplace performance, license verification, address, telephone numbers, plus a brief description of products and/or services offered. This website was visited 2,947,030 times with a total of 3,839,702 pages viewed in This service is available 24-hours a day, seven days a week. The local BBB website generated 76% new visits in ,955 81% Number of calls provide free information on how to Start With Trust Dispute Resolution Satisfaction 6, Request A Quotes Processed Consumers requested free price quotes from Accredited Businesses Number of Accredited Businesses who have elected to display the BBBOnline Seal on their website 836,536 BBB Business Reviews Provided