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Better Business Bureau Opportunity

Better Business Bureau Opportunity. Tom Wilson President, The CareGiver Partnership BBB Board Member, NE Wisconsin November 29, 2010. BBB Purpose and Mission. An ethical marketplace where buyers and sellers can trust each other.

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Better Business Bureau Opportunity

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  1. Better Business Bureau Opportunity Tom Wilson President, The CareGiver Partnership BBB Board Member, NE Wisconsin November 29, 2010

  2. BBB Purpose and Mission An ethical marketplace where buyers and sellers can trust each other. Mission: Be the leader in advancing marketplace trust by: • Creating a community of trustworthy businesses • Setting standards for marketplace trust • Encouraging and supporting best practices • Celebrating marketplace role models, and; • Denouncing substandard marketplace behavior

  3. Background • Since its inception, the Better Business Bureau has been ‘in the business’ of providing trust to consumers. • A key impediment to growth of ecommerce has been trust. Consumers worry about having their personal and financial information stolen. • This ‘trust gap’ has created a growth market in ‘trust’. See examples of 12 trust symbols on the following page. This is just a small sampling. • The BBB is losing market share in the ‘trust’ market. • Costs for online ecommerce sites to license trust marks ranges from about $245 to $1,300+ annually depending on the mark. • BBB includes its online reliability mark in its annual fee. This trust mark does not offer the benefits such as virus protection, etc.

  4. Background • The equity of the BBB trademark has been seriously harmed by the recent ABC report claiming the organization has been scamming small businesses. • The initial response did not address the core issues which are: • A definition of the business the BBB is in (read Marketing Myopia) • The manner in which the BBB is organized resulting in: • a lack of centralized control • exorbitant overhead (up to 71% of revenue spent on compensation) • an incomprehensible salary structure where local leaders earn more than the national leader.

  5. Which one, should one trust?

  6. What is the opportunity? • The ‘trust symbol’ category is large and growing (metrics TBD). • The BBB can tap into this revenue stream by marketing a trust symbol utilizing all the protective best practices employed by the competing marks (its more than just a symbol). • This can be accomplished through a licensing arrangement with an organization that has the technical expertise, or building that capability internally within the BBB organization. • BBB is likely one of the most trusted symbols, albeit with an older audience. A marketing campaign targeted to younger consumers is required - one that is sustainable over a period of years. • Capitalizing on this opportunity could become a significant revenue stream and drive awareness among a younger target.

  7. Action Steps • If the BBB elects not to enter the online trust space or to begin marketing to a younger target (who shop online at a much greater degree than BBB’s older target), overtime the BBB mark will erode and become less relevant. • That’s why, the time is now to enter the market – before the BBB mark loses its relevancy. • Next steps: • Determine size of trust market (secondary research) • Develop a basis for interest around licensing as an entry strategy (potential partners, capabilities, licensing fee agreements). • Conduct primary research with online consumers (younger/older) to test the appeal of a BBB online trust mark. Develop a unique and distinctive brand positioning.

  8. BBB vs. VeriSign VeriSign is one of the most broadly recognized trust marks yet today BBB has more search (top graph). VeriSign has more news reference volume however (bottom graph)

  9. Quantitative Assessment of the BBB • Since 2008, The Caregiver Partnership, a national direct to consumer retailer of home medical supplies has conducted an ongoing tracking study of its consumers to identify areas for improvement. • The research is conducted under the direction of CenterBrain Partners, Inc., a national marketing research agency. • The CareGiver Partnership is so pasionate about customer service, their founders literally wrote the book on it. • www.caregiverpartnership.com/negotiate-anything.aspx

  10. BBB as a Purchase Motivator No consumers rated BBB as a primary reason for shopping with The CareGiver Partnership. National sampling – Jan-Oct 2010.

  11. BBB as a Purchase Motivator The BBB was rated as one of the least important reasons for shopping with The CareGiver Partnership

  12. Contacts Tom Wilson President, The CareGiver Partnership Consumer Advocate & Author of Negotiate Anything! BBB Board Member tomw@caregiverpartnership.com 920-729-7091

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