What is the F rating on the Better Business Bureau (BBB)? Striving as a successful company in a highly competitive market by gaining customers’ trust with thousands of businesses already operating is not a piece of cake!
A customer will not even read the name of a company that is rated seven out of ten for buying anything rather it will pick only among the top-rated ones so rating is an important thing.
Better Business Bureau (BBB) is a self-regulatory organization that rates the profit and non-profit organizations and provides this information to the public. Profit organizations are all the operating legal firms and businesses whereas non-profit organizations are NGOs and charity centers.
It is a system that rates the businesses based on an A+ (highest) to F (lowest) scale.
This rating is based on certain criteria that are set to ensure proper compliance with basic business ethics and practices by building a relationship of trust between businesses and the public. This rating is simply an opinion of BBB about customer dealing. It provides guidance to businesses for building and retaining the trust of customers.
Rating Elements
Significant factors that decide the rating of a business are:
- Number of complaints against any business, filed by the customers
- Size of the business
- Number of properly dealt customer-related problems by the business
- Number of complaints that are timely handled along with customer satisfaction
- Age of resolved complaints
- Extent of effort used by BBB to solve a problem
- Type of the business
- Time length of a business when it has started operating
- Transparency of a firm about providing its services
- Failure to honor arbitration
- Eligibility of a business to attain a License of Competency
- Government actions known to BBB
F Rating on BBB’s Scale
A+ on the scale is getting points between 97 and 100 and F represents 0(zero) or complete failure. It is the lowest grade on BBB’s scale given to firms that fail to satisfy customers.
It is not about how many complaints a business is facing from customers rather it is about how a business is failing to handle them. Businesses receiving an F rank may also have a history of violating BBB’s standard rules and regulations. It also shows the poor trustworthiness and reliability level of a business.
F rating is a red flag for other businesses too, operating in the market. This information helps other companies to think wisely about doing business deals, making mergers and continuing operations with F-rated businesses.
Ratings give a scale to measure the performances, if taken positively, F-rated companies can take it as an improvement alert by reassessing their practices and operations.
In conclusion, the information provided by BBB about businesses is a great help for customers and other businesses in evaluating any business’ performance in the market by providing insight. This system saves customers from fraudulent activities, poor service and waste of money.
It assists failing companies in improving their quality and boosting their performance by providing better products or services to the customers.
