2012

BBB 2012 ANNUAL REPORT

ADVANCING MARKETPLACE TRUST

An ethical

marketplace where

buyers and sellers

can trust each other.

VISION

To be the leader

in advancing

marketplace trust.

A letter from the President and CEO

BUILD TRUST: Establish and maintain a positive track record in the marketplace.

ADVERTISE HONESTLY: Adhere to established standards of advertising and selling.

TELL THE TRUTH: Honestly represent products and services, including clear and adequate disclosures of all material terms.

BE TRANSPARENT: Openly identify the nature, location and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

HONOR PROMISES: Abide by all written agreements and verbal representations.

BE RESPONSIVE: Address marketplace disputes quickly, professionally and in good faith.

SAFEGUARD PRIVACY: Protect any data collected against mishandling and fraud, collect personal information only as needed and respect the preferences of consumers regarding the use of their information.

EMBODY INTEGRITY: Approach all business dealings, marketplace transactions and commitments with integrity.

MISSIONBBB ACCREDITATION STANDARDS

®

®

2012 marks an important milestone in BBB history as we celebrate our centennial year. For 100 years, BBB has helped consumers make smarter buying decisions, and has evolved to meet the ever-changing needs of the marketplace. The past year has been one of strong growth and continued momentum as we made great strides to strengthen our commitment to our mission of advancing marketplace trust.

In 2011, your BBB experienced tremendous growth through the merger of the Permian Basin BBB to form BBB serving Central, Coastal, Southwest Texas and the Permian Basin. The newly combined territory, spanning 79 counties, increased BBB’s capacity to serve even more consumers and businesses through a single, reliable resource.

An innovative year, 2011 marked the launch of the interactive BBB Dynamic Seal program, allowing consumers to connect online with trustworthy businesses. BBB also launched its new report format, renamed BBB Business Review®. This enhanced review provides more information to consumers and allows BBB Accredited Businesses to highlight their products and services through photos and videos and connect with potential customers through social media channels. BBB also introduced the Cities Served program as an enhancement to its exclusive online directory, BBB Member Pages. This new program helps BBB Accredited Businesses reach their potential customers in each city where they do business.

2011 brought yet another year of outstanding results and recognition. Your BBB continues to be recognized as one of the most influential BBBs in North America, and the efforts of BBB staff have rendered record-breaking results at both the local and national levels. BBB received five international awards at the BBB International Assembly of Better Business Bureaus, including the highly coveted Marshall A. Mott Award, the highest honor a local BBB can obtain. This award recognizes overall excellence in communications. In addition, your BBB received recognition for all facets of BBB work including overall operations, public awareness and the number one business development representative in the nation. BBB was also honored by The NonProfit Times as one of the “Best NonProfit Organizations to Work for,” in addition to earning three MarCom Awards and two Hermes Creative Awards in recognition of its marketing and communication efforts.

In closing, I want to express my pride in the BBB team for their hard work, discipline and dedication to the communities we serve. Congratulations to all BBB Accredited Businesses for earning BBB Accreditation and furthering BBB’s mission of advancing marketplace trust.

Respectfully Submitted,

Carrie A. Hurt, President/CEO

BBB Serving Central, Coastal, Southwest Texas and the Permian Basin

“I just had to take a moment to thank you for the quick way you responded to my complaint. I only wish that every organization in this country could run as efficiently and respond to matters as well as yours.”

”Thank you for your guidance and wonderful service of assistance during a time of adverse customer service. Your online system is wonderful and response time expedient. The positive side of this experience was discovering all of the upgrades of Better Business Bureau.”

“I am thankful for BBB in helping me resolve my complaint. My gratitude for all your efforts cannot be overstated. Although I filed with multiple agencies, the most effective results came directly from actions taken by BBB!”

“Request A Quote is an awesome program! We’ve been getting steady leads since joining, and we’ve been able to turn over more than 85% of the requests we’ve received into booked jobs! We appreciate the great leads as well as the personalized service we receive from your staff. Thanks BBB!”

“I am so proud to be associated with the Better Business Bureau, not only because of the wonderful purpose and history, but also because of the incredible staff we are so fortunate to have. Your outstanding daily efforts on behalf of the members and consumers make the world a better place. Thank you all for the work you do.”

Scott BarrSouthwest Exteriors

Maria Bleier Dell, Inc.

Martin Bomba Window World of San Antonio

Randy Brunnemann Crowne Plaza Hotel Austin

John Carlson Braswell Office Systems

Mike Church Cody Pools, Inc.

Holly Dunham Waco Hyundai

John Dunn Barbed Cross Construction, LLC

Kathryn Frank Kathryn Frank CPA

Tommy Gardner Aransas Autoplex

Bobby Jenkins ABC Home & Commercial Services

Stan Johnson, Jr. Stan’s Heating & Air Conditioning, Inc.

Susan Jones Extraco Banks Mortgage Department

Mat Naegele Lamar Outdoor Advertising

Mitchell Neubert Baylor University

Odis Pippins Fort Hood National Bank

Rick Ravel Karavel Shoes

Philip Robinson Covert Auto Group

Darrell Sander Frost Bank

Angie Sinkfield Seigman, Starrit-Burnett and Sinkfield, PLLC

Linda Smith En Su Casa Caregivers

Patti Smith KVUE-TV, Inc.

Greg Wallace Bogan, Dunlap & Wood Insurance Agency, LLC

2012

BBB Officers & Executive Committee

CHAIRNancy Thompson

Bolton Real Estate Services

CHAIR-ELECT Monica Davis

Davis Group, Inc./Teleclip, Inc.

SECRETARY Bobby Hoxworth

First National Bank - Texas

TREASURER Doug Davidson

BMC Select

IMMEDIATE PAST CHAIR Laurens Fish III

Weed-Corley-Fish Funeral Home

PRESIDENT/CEO Carrie A. Hurt

Better Business Bureau, Inc.

EXECUTIVE COMMITTEE Jon Eckert

BBVA Compass Bank

EXECUTIVE COMMITTEE Jeff Evins

Evins Personnel

EXECUTIVE COMMITTEE T. Getterman

Supercuts

2012 BBB Board ofDirectors

TESTIMONIALS

®

2012

BBB 2012 ANNUAL REPORT

ADVANCING MARKETPLACE TRUST

An ethical

marketplace where

buyers and sellers

can trust each other.

VISION

To be the leader

in advancing

marketplace trust.

A letter from the President and CEO

BUILD TRUST: Establish and maintain a positive track record in the marketplace.

ADVERTISE HONESTLY: Adhere to established standards of advertising and selling.

TELL THE TRUTH: Honestly represent products and services, including clear and adequate disclosures of all material terms.

BE TRANSPARENT: Openly identify the nature, location and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

HONOR PROMISES: Abide by all written agreements and verbal representations.

BE RESPONSIVE: Address marketplace disputes quickly, professionally and in good faith.

SAFEGUARD PRIVACY: Protect any data collected against mishandling and fraud, collect personal information only as needed and respect the preferences of consumers regarding the use of their information.

EMBODY INTEGRITY: Approach all business dealings, marketplace transactions and commitments with integrity.

MISSIONBBB ACCREDITATION STANDARDS

®

®

2012 marks an important milestone in BBB history as we celebrate our centennial year. For 100 years, BBB has helped consumers make smarter buying decisions, and has evolved to meet the ever-changing needs of the marketplace. The past year has been one of strong growth and continued momentum as we made great strides to strengthen our commitment to our mission of advancing marketplace trust.

In 2011, your BBB experienced tremendous growth through the merger of the Permian Basin BBB to form BBB serving Central, Coastal, Southwest Texas and the Permian Basin. The newly combined territory, spanning 79 counties, increased BBB’s capacity to serve even more consumers and businesses through a single, reliable resource.

An innovative year, 2011 marked the launch of the interactive BBB Dynamic Seal program, allowing consumers to connect online with trustworthy businesses. BBB also launched its new report format, renamed BBB Business Review®. This enhanced review provides more information to consumers and allows BBB Accredited Businesses to highlight their products and services through photos and videos and connect with potential customers through social media channels. BBB also introduced the Cities Served program as an enhancement to its exclusive online directory, BBB Member Pages. This new program helps BBB Accredited Businesses reach their potential customers in each city where they do business.

2011 brought yet another year of outstanding results and recognition. Your BBB continues to be recognized as one of the most influential BBBs in North America, and the efforts of BBB staff have rendered record-breaking results at both the local and national levels. BBB received five international awards at the BBB International Assembly of Better Business Bureaus, including the highly coveted Marshall A. Mott Award, the highest honor a local BBB can obtain. This award recognizes overall excellence in communications. In addition, your BBB received recognition for all facets of BBB work including overall operations, public awareness and the number one business development representative in the nation. BBB was also honored by The NonProfit Times as one of the “Best NonProfit Organizations to Work for,” in addition to earning three MarCom Awards and two Hermes Creative Awards in recognition of its marketing and communication efforts.

In closing, I want to express my pride in the BBB team for their hard work, discipline and dedication to the communities we serve. Congratulations to all BBB Accredited Businesses for earning BBB Accreditation and furthering BBB’s mission of advancing marketplace trust.

Respectfully Submitted,

Carrie A. Hurt, President/CEO

BBB Serving Central, Coastal, Southwest Texas and the Permian Basin

“I just had to take a moment to thank you for the quick way you responded to my complaint. I only wish that every organization in this country could run as efficiently and respond to matters as well as yours.”

”Thank you for your guidance and wonderful service of assistance during a time of adverse customer service. Your online system is wonderful and response time expedient. The positive side of this experience was discovering all of the upgrades of Better Business Bureau.”

“I am thankful for BBB in helping me resolve my complaint. My gratitude for all your efforts cannot be overstated. Although I filed with multiple agencies, the most effective results came directly from actions taken by BBB!”

“Request A Quote is an awesome program! We’ve been getting steady leads since joining, and we’ve been able to turn over more than 85% of the requests we’ve received into booked jobs! We appreciate the great leads as well as the personalized service we receive from your staff. Thanks BBB!”

“I am so proud to be associated with the Better Business Bureau, not only because of the wonderful purpose and history, but also because of the incredible staff we are so fortunate to have. Your outstanding daily efforts on behalf of the members and consumers make the world a better place. Thank you all for the work you do.”

Scott BarrSouthwest Exteriors

Maria Bleier Dell, Inc.

Martin Bomba Window World of San Antonio

Randy Brunnemann Crowne Plaza Hotel Austin

John Carlson Braswell Office Systems

Mike Church Cody Pools, Inc.

Holly Dunham Waco Hyundai

John Dunn Barbed Cross Construction, LLC

Kathryn Frank Kathryn Frank CPA

Tommy Gardner Aransas Autoplex

Bobby Jenkins ABC Home & Commercial Services

Stan Johnson, Jr. Stan’s Heating & Air Conditioning, Inc.

Susan Jones Extraco Banks Mortgage Department

Mat Naegele Lamar Outdoor Advertising

Mitchell Neubert Baylor University

Odis Pippins Fort Hood National Bank

Rick Ravel Karavel Shoes

Philip Robinson Covert Auto Group

Darrell Sander Frost Bank

Angie Sinkfield Seigman, Starrit-Burnett and Sinkfield, PLLC

Linda Smith En Su Casa Caregivers

Patti Smith KVUE-TV, Inc.

Greg Wallace Bogan, Dunlap & Wood Insurance Agency, LLC

2012

BBB Officers & Executive Committee

CHAIRNancy Thompson

Bolton Real Estate Services

CHAIR-ELECT Monica Davis

Davis Group, Inc./Teleclip, Inc.

SECRETARY Bobby Hoxworth

First National Bank - Texas

TREASURER Doug Davidson

BMC Select

IMMEDIATE PAST CHAIR Laurens Fish III

Weed-Corley-Fish Funeral Home

PRESIDENT/CEO Carrie A. Hurt

Better Business Bureau, Inc.

EXECUTIVE COMMITTEE Jon Eckert

BBVA Compass Bank

EXECUTIVE COMMITTEE Jeff Evins

Evins Personnel

EXECUTIVE COMMITTEE T. Getterman

Supercuts

2012 BBB Board ofDirectors

TESTIMONIALS

®

2011 Award Recognition

Carrie A. Hurt honored as a Woman of Influence by Austin Business Journal’s Profiles in Power

Named one of the Best Non-Profits to Work For by The NonProfit Times

Recipient of the Marshall A. Mott Award for Overall Communications at the International Assembly of BBBs

Outstanding BBB Award for Overall Operations at the International Assembly of BBBs

Outstanding BBB Award for Advertising Review-Single Case at the International Assembly of BBBs

Platinum, MarCom Award for Trust Talk newsletter

Gold, MarCom Awards for USB Card and BBB Welcome Brochure

Honorable Mention, MarCom Award for BBB blog – Watch Your Buck

Gold, AMCP Hermes Creative Award for eTrust Talk newsletter

Honorable Mention, AMCP Hermes Creative Award for BBB Welcome Brochure

Connecting Consumers with Trustworthy Businesses Celebrating Marketplace Role Models Empowering Through Results

Since 1912, BBB has served consumers and businesses as an authority on trust in the marketplace. BBB sets and upholds high standards for ethical marketplace behavior and is the preeminent resource for objective, unbiased information on businesses and charities. More than 116 BBBs support communities across the United States and Canada, evaluating and monitoring more than 4 million local and national businesses and charities. Your BBB, founded in 1950, serves 79 counties through its five offices in Austin, Corpus Christi, Harker Heights, Midland and San Antonio. Highly recognized as one of the most influential BBBs in the system, BBB serving Central, Coastal, Southwest Texas and the Permian Basin offers local consumers and businesses the resources they need to Start With Trust®.

BBB provided more than 3.5 million instances of service in 2011. BBB offered various events, programs and services to advance marketplace trust for both consumers and businesses.

BBB partnered with the city of San Antonio to implement the Better Buildings Program. Through continuing education on how to find trustworthy contractors, BBB helped reach consumers in the greater San Antonio area.

BBB’s social media platform continued its growth through Facebook, Twitter and the BBB blog, Watch Your Buck. In 2011, BBB’s social media garnered 60,018 views through its continual efforts to inform consumers and businesses in its local communities.

In 2011, BBB enhanced its Advantages of Accreditation through the launch of new programs and improvements to existing services.

BBB introduced the new BBB Business Review format with a photo and video option for BBB Accredited Businesses. This online enhancement provides more information to consumers, as well as highlights Accredited Businesses and their products and services to connect with potential customers.

BBB continues to be on the forefront of technology-based services with the launch of the interactive BBB Dynamic Seal program for Accredited Businesses’ web and social media sites. Consumers clicked the seal 22,108 times to verify the business’ Accreditation status.

BBB also launched the new Cities Served program to Accredited Businesses through BBB Member Pages. This program allows Accredited Businesses to reach potential customers in all cities where they do business.

IN 2011, BBB PROVIDED 3,598,884 INSTANCES OF SERVICE.

CREATING A COMMUNITY OF TRUSTWORTHY BUSINESSES

h Increased total BBB Accredited Business locations to 10,694, an increase of 8% from 2010

h Increased total number of BBB Business Reviews provided to 1,565,813, an increase of 10% over 2010

CELEBRATING MARKETPLACE ROLE MODELS

h Increased the average number of monthly BBB website visits to 148,607, an increase of 9%

h Featured BBB Accredited Businesses in BBB’s exclusive online directory, Member Pages, which hosted 12,092,320 listing views

h BBB’s Request A Quote program provided 11,523 price quotes to BBB Accredited Businesses, a 60% increase

TOP 10 MOST COMPLAINED ABOUT LOCAL INDUSTRIES

1.

2. Auto Dealers - New Cars (403)

3.

4.

5.

6.

7.

8. )

9.

10.

TOP 10 MOST INQUIRED ABOUT LOCAL INDUSTRIES

1. Roofing Contractors (54,662)

2. Home Builders (46,403)

3. Air Conditioning Contractors & Systems (43,296)

4. Construction & Remodeling Services (36,510)

5. Insurance Companies (35,203)

6. Auto Repair & Service (27,381)

7. Auto Dealers – Used Cars (25,538)

8. Plumbers (25,319)

9. Movers (25,203)

10. Swimming Pool Contractors, Dealers, Design (23,759)

ABOUT BBB

Permian Basin BBB and BBB serving Central, Coastal and Southwest Texas joined in 2011 to form BBB serving Central, Coastal, Southwest Texas and the Permian Basin. The newly combined territory, spanning 79 counties and over a third of the state of Texas, boasts more than 10,000 Accredited Business locations in seven media markets.

In 2011, BBB also purchased permanent office space in downtown San Antonio. BBB’s expanded territory has made a significant impact on all BBB Accredited Businesses and increased their exposure through BBB Member Pages, social media communications and more.

BBB GROWTH IN 2011

COMMUNITY

4,706 Media Appearances

102 Press Releases Issued

89 Total Investigations

73,417 Phone Assistance

Value of Non-Paid Media$1,219,900

2011 ACTIVITY

Website Visits: 1,783,278BBB’s website received an average of 4,800 visits per day in 2011, an 8% increase over 2010

BBB Business Reviews Provided: 1,565,813 Consumers searched BBB’s database of more than 105,000 BBB Business Reviews, and 64% of those searches were for BBB Accredited Businesses

Member Pages Directory Searches: 258,109Consumers turned to BBB’s Accredited Business Directory to find trustworthy businesses. In 2011, BBB hosted an average of 700 searches per day

Phone Assistance: 73,417BBB fielded an average of 1,410 calls per week to provide free information on how to Start With Trust®

2011 SERVICE DELIVERY HIGHLIGHTSComplaints Handled: 19,887 BBB’s dispute resolution process offered conciliation, mediation and arbitration to consumers and businesses

Request A Quotes Processed: 11,523Consumers requested free price quotes from Accredited Businesses through BBB’s website, a 60% increase from 2010

Media Appearances: 4,706BBB worked closely with media outlets across its service area to inform consumers of scams and promote the use of BBB programs and services

Advertising Review and Assistance: 216BBB proactively worked with local companies to promote ethical advertising practices

2011 CAMPAIGN HIGHLIGHTSDriving Consumers to Trustworthy Businesses

Multimedia Testimonial Campaign in San AntonioBBB launched a multimedia testimonial campaign in San Antonio featuring local BBB Accredited Businesses. The campaign included both outdoor and radio advertising, and yielded more than 83 million impressions.

“We Invented This Whole Idea” Cable TV CampaignBBB introduced its first-ever cable TV advertising campaign called “We Invented This Whole Idea.” The campaign covered five media markets resulting in 889,082 impressions.

DENOUNCING SUBSTANDARD MARKETPLACE BEHAVIOR

h Conducted 89 investigations to expose scams and fraud

h Revoked 54 BBB Accredited Businesses for failure to meet BBB Accreditation Standards

h Issued 102 press releases to protect consumers and businesses

ENCOURAGING AND SUPPORTING BEST PRACTICES

h Launched a multimedia testimonial campaign in San Antonio featuring BBB Accredited Businesses that yielded 83 million impressions

h Introduced a cable TV advertising campaign to drive consumers to trustworthy businesses consumers that resulted in 889,082 impressions

SETTING STANDARDS FOR MARKETPLACE TRUST

h Reviewed 8,421 applications and reapplications for BBB Accreditation

h Worked with 216 local companies to promote ethical advertising practices

83%

155

Average Days to Settle Disputes19.5

19,887

2011 DISPUTE RESOLUTION

Dispute Resolution Satisfaction

Total Complaints Handled

Total Mediations and Arbitrations

®

2011 Award Recognition

Carrie A. Hurt honored as a Woman of Influence by Austin Business Journal’s Profiles in Power

Named one of the Best Non-Profits to Work For by The NonProfit Times

Recipient of the Marshall A. Mott Award for Overall Communications at the International Assembly of BBBs

Outstanding BBB Award for Overall Operations at the International Assembly of BBBs

Outstanding BBB Award for Advertising Review-Single Case at the International Assembly of BBBs

Platinum, MarCom Award for Trust Talk newsletter

Gold, MarCom Awards for USB Card and BBB Welcome Brochure

Honorable Mention, MarCom Award for BBB blog – Watch Your Buck

Gold, AMCP Hermes Creative Award for eTrust Talk newsletter

Honorable Mention, AMCP Hermes Creative Award for BBB Welcome Brochure

Connecting Consumers with Trustworthy Businesses Celebrating Marketplace Role Models Empowering Through Results

Since 1912, BBB has served consumers and businesses as an authority on trust in the marketplace. BBB sets and upholds high standards for ethical marketplace behavior and is the preeminent resource for objective, unbiased information on businesses and charities. More than 116 BBBs support communities across the United States and Canada, evaluating and monitoring more than 4 million local and national businesses and charities. Your BBB, founded in 1950, serves 79 counties through its five offices in Austin, Corpus Christi, Harker Heights, Midland and San Antonio. Highly recognized as one of the most influential BBBs in the system, BBB serving Central, Coastal, Southwest Texas and the Permian Basin offers local consumers and businesses the resources they need to Start With Trust®.

BBB provided more than 3.5 million instances of service in 2011. BBB offered various events, programs and services to advance marketplace trust for both consumers and businesses.

BBB partnered with the city of San Antonio to implement the Better Buildings Program. Through continuing education on how to find trustworthy contractors, BBB helped reach consumers in the greater San Antonio area.

BBB’s social media platform continued its growth through Facebook, Twitter and the BBB blog, Watch Your Buck. In 2011, BBB’s social media garnered 60,018 views through its continual efforts to inform consumers and businesses in its local communities.

In 2011, BBB enhanced its Advantages of Accreditation through the launch of new programs and improvements to existing services.

BBB introduced the new BBB Business Review format with a photo and video option for BBB Accredited Businesses. This online enhancement provides more information to consumers, as well as highlights Accredited Businesses and their products and services to connect with potential customers.

BBB continues to be on the forefront of technology-based services with the launch of the interactive BBB Dynamic Seal program for Accredited Businesses’ web and social media sites. Consumers clicked the seal 22,108 times to verify the business’ Accreditation status.

BBB also launched the new Cities Served program to Accredited Businesses through BBB Member Pages. This program allows Accredited Businesses to reach potential customers in all cities where they do business.

IN 2011, BBB PROVIDED 3,598,884 INSTANCES OF SERVICE.

CREATING A COMMUNITY OF TRUSTWORTHY BUSINESSES

h Increased total BBB Accredited Business locations to 10,694, an increase of 8% from 2010

h Increased total number of BBB Business Reviews provided to 1,565,813, an increase of 10% over 2010

CELEBRATING MARKETPLACE ROLE MODELS

h Increased the average number of monthly BBB website visits to 148,607, an increase of 9%

h Featured BBB Accredited Businesses in BBB’s exclusive online directory, Member Pages, which hosted 12,092,320 listing views

h BBB’s Request A Quote program provided 11,523 price quotes to BBB Accredited Businesses, a 60% increase

TOP 10 MOST COMPLAINED ABOUT LOCAL INDUSTRIES

1.

2. Auto Dealers - New Cars (403)

3.

4.

5.

6.

7.

8. )

9.

10.

TOP 10 MOST INQUIRED ABOUT LOCAL INDUSTRIES

1. Roofing Contractors (54,662)

2. Home Builders (46,403)

3. Air Conditioning Contractors & Systems (43,296)

4. Construction & Remodeling Services (36,510)

5. Insurance Companies (35,203)

6. Auto Repair & Service (27,381)

7. Auto Dealers – Used Cars (25,538)

8. Plumbers (25,319)

9. Movers (25,203)

10. Swimming Pool Contractors, Dealers, Design (23,759)

ABOUT BBB

Permian Basin BBB and BBB serving Central, Coastal and Southwest Texas joined in 2011 to form BBB serving Central, Coastal, Southwest Texas and the Permian Basin. The newly combined territory, spanning 79 counties and over a third of the state of Texas, boasts more than 10,000 Accredited Business locations in seven media markets.

In 2011, BBB also purchased permanent office space in downtown San Antonio. BBB’s expanded territory has made a significant impact on all BBB Accredited Businesses and increased their exposure through BBB Member Pages, social media communications and more.

BBB GROWTH IN 2011

COMMUNITY

4,706 Media Appearances

102 Press Releases Issued

89 Total Investigations

73,417 Phone Assistance

Value of Non-Paid Media$1,219,900

2011 ACTIVITY

Website Visits: 1,783,278BBB’s website received an average of 4,800 visits per day in 2011, an 8% increase over 2010

BBB Business Reviews Provided: 1,565,813 Consumers searched BBB’s database of more than 105,000 BBB Business Reviews, and 64% of those searches were for BBB Accredited Businesses

Member Pages Directory Searches: 258,109Consumers turned to BBB’s Accredited Business Directory to find trustworthy businesses. In 2011, BBB hosted an average of 700 searches per day

Phone Assistance: 73,417BBB fielded an average of 1,410 calls per week to provide free information on how to Start With Trust®

2011 SERVICE DELIVERY HIGHLIGHTSComplaints Handled: 19,887 BBB’s dispute resolution process offered conciliation, mediation and arbitration to consumers and businesses

Request A Quotes Processed: 11,523Consumers requested free price quotes from Accredited Businesses through BBB’s website, a 60% increase from 2010

Media Appearances: 4,706BBB worked closely with media outlets across its service area to inform consumers of scams and promote the use of BBB programs and services

Advertising Review and Assistance: 216BBB proactively worked with local companies to promote ethical advertising practices

2011 CAMPAIGN HIGHLIGHTSDriving Consumers to Trustworthy Businesses

Multimedia Testimonial Campaign in San AntonioBBB launched a multimedia testimonial campaign in San Antonio featuring local BBB Accredited Businesses. The campaign included both outdoor and radio advertising, and yielded more than 83 million impressions.

“We Invented This Whole Idea” Cable TV CampaignBBB introduced its first-ever cable TV advertising campaign called “We Invented This Whole Idea.” The campaign covered five media markets resulting in 889,082 impressions.

DENOUNCING SUBSTANDARD MARKETPLACE BEHAVIOR

h Conducted 89 investigations to expose scams and fraud

h Revoked 54 BBB Accredited Businesses for failure to meet BBB Accreditation Standards

h Issued 102 press releases to protect consumers and businesses

ENCOURAGING AND SUPPORTING BEST PRACTICES

h Launched a multimedia testimonial campaign in San Antonio featuring BBB Accredited Businesses that yielded 83 million impressions

h Introduced a cable TV advertising campaign to drive consumers to trustworthy businesses consumers that resulted in 889,082 impressions

SETTING STANDARDS FOR MARKETPLACE TRUST

h Reviewed 8,421 applications and reapplications for BBB Accreditation

h Worked with 216 local companies to promote ethical advertising practices

83%

155

Average Days to Settle Disputes19.5

19,887

2011 DISPUTE RESOLUTION

Dispute Resolution Satisfaction

Total Complaints Handled

Total Mediations and Arbitrations

®

2011 Award Recognition

Carrie A. Hurt honored as a Woman of Influence by Austin Business Journal’s Profiles in Power

Named one of the Best Non-Profits to Work For by The NonProfit Times

Recipient of the Marshall A. Mott Award for Overall Communications at the International Assembly of BBBs

Outstanding BBB Award for Overall Operations at the International Assembly of BBBs

Outstanding BBB Award for Advertising Review-Single Case at the International Assembly of BBBs

Platinum, MarCom Award for Trust Talk newsletter

Gold, MarCom Awards for USB Card and BBB Welcome Brochure

Honorable Mention, MarCom Award for BBB blog – Watch Your Buck

Gold, AMCP Hermes Creative Award for eTrust Talk newsletter

Honorable Mention, AMCP Hermes Creative Award for BBB Welcome Brochure

Connecting Consumers with Trustworthy Businesses Celebrating Marketplace Role Models Empowering Through Results

Since 1912, BBB has served consumers and businesses as an authority on trust in the marketplace. BBB sets and upholds high standards for ethical marketplace behavior and is the preeminent resource for objective, unbiased information on businesses and charities. More than 116 BBBs support communities across the United States and Canada, evaluating and monitoring more than 4 million local and national businesses and charities. Your BBB, founded in 1950, serves 79 counties through its five offices in Austin, Corpus Christi, Harker Heights, Midland and San Antonio. Highly recognized as one of the most influential BBBs in the system, BBB serving Central, Coastal, Southwest Texas and the Permian Basin offers local consumers and businesses the resources they need to Start With Trust®.

BBB provided more than 3.5 million instances of service in 2011. BBB offered various events, programs and services to advance marketplace trust for both consumers and businesses.

BBB partnered with the city of San Antonio to implement the Better Buildings Program. Through continuing education on how to find trustworthy contractors, BBB helped reach consumers in the greater San Antonio area.

BBB’s social media platform continued its growth through Facebook, Twitter and the BBB blog, Watch Your Buck. In 2011, BBB’s social media garnered 60,018 views through its continual efforts to inform consumers and businesses in its local communities.

In 2011, BBB enhanced its Advantages of Accreditation through the launch of new programs and improvements to existing services.

BBB introduced the new BBB Business Review format with a photo and video option for BBB Accredited Businesses. This online enhancement provides more information to consumers, as well as highlights Accredited Businesses and their products and services to connect with potential customers.

BBB continues to be on the forefront of technology-based services with the launch of the interactive BBB Dynamic Seal program for Accredited Businesses’ web and social media sites. Consumers clicked the seal 22,108 times to verify the business’ Accreditation status.

BBB also launched the new Cities Served program to Accredited Businesses through BBB Member Pages. This program allows Accredited Businesses to reach potential customers in all cities where they do business.

IN 2011, BBB PROVIDED 3,598,884 INSTANCES OF SERVICE.

CREATING A COMMUNITY OF TRUSTWORTHY BUSINESSES

h Increased total BBB Accredited Business locations to 10,694, an increase of 8% from 2010

h Increased total number of BBB Business Reviews provided to 1,565,813, an increase of 10% over 2010

CELEBRATING MARKETPLACE ROLE MODELS

h Increased the average number of monthly BBB website visits to 148,607, an increase of 9%

h Featured BBB Accredited Businesses in BBB’s exclusive online directory, Member Pages, which hosted 12,092,320 listing views

h BBB’s Request A Quote program provided 11,523 price quotes to BBB Accredited Businesses, a 60% increase

TOP 10 MOST COMPLAINED ABOUT LOCAL INDUSTRIES

1.

2. Auto Dealers - New Cars (403)

3.

4.

5.

6.

7.

8. )

9.

10.

TOP 10 MOST INQUIRED ABOUT LOCAL INDUSTRIES

1. Roofing Contractors (54,662)

2. Home Builders (46,403)

3. Air Conditioning Contractors & Systems (43,296)

4. Construction & Remodeling Services (36,510)

5. Insurance Companies (35,203)

6. Auto Repair & Service (27,381)

7. Auto Dealers – Used Cars (25,538)

8. Plumbers (25,319)

9. Movers (25,203)

10. Swimming Pool Contractors, Dealers, Design (23,759)

ABOUT BBB

Permian Basin BBB and BBB serving Central, Coastal and Southwest Texas joined in 2011 to form BBB serving Central, Coastal, Southwest Texas and the Permian Basin. The newly combined territory, spanning 79 counties and over a third of the state of Texas, boasts more than 10,000 Accredited Business locations in seven media markets.

In 2011, BBB also purchased permanent office space in downtown San Antonio. BBB’s expanded territory has made a significant impact on all BBB Accredited Businesses and increased their exposure through BBB Member Pages, social media communications and more.

BBB GROWTH IN 2011

COMMUNITY

4,706 Media Appearances

102 Press Releases Issued

89 Total Investigations

73,417 Phone Assistance

Value of Non-Paid Media$1,219,900

2011 ACTIVITY

Website Visits: 1,783,278BBB’s website received an average of 4,800 visits per day in 2011, an 8% increase over 2010

BBB Business Reviews Provided: 1,565,813 Consumers searched BBB’s database of more than 105,000 BBB Business Reviews, and 64% of those searches were for BBB Accredited Businesses

Member Pages Directory Searches: 258,109Consumers turned to BBB’s Accredited Business Directory to find trustworthy businesses. In 2011, BBB hosted an average of 700 searches per day

Phone Assistance: 73,417BBB fielded an average of 1,410 calls per week to provide free information on how to Start With Trust®

2011 SERVICE DELIVERY HIGHLIGHTSComplaints Handled: 19,887 BBB’s dispute resolution process offered conciliation, mediation and arbitration to consumers and businesses

Request A Quotes Processed: 11,523Consumers requested free price quotes from Accredited Businesses through BBB’s website, a 60% increase from 2010

Media Appearances: 4,706BBB worked closely with media outlets across its service area to inform consumers of scams and promote the use of BBB programs and services

Advertising Review and Assistance: 216BBB proactively worked with local companies to promote ethical advertising practices

2011 CAMPAIGN HIGHLIGHTSDriving Consumers to Trustworthy Businesses

Multimedia Testimonial Campaign in San AntonioBBB launched a multimedia testimonial campaign in San Antonio featuring local BBB Accredited Businesses. The campaign included both outdoor and radio advertising, and yielded more than 83 million impressions.

“We Invented This Whole Idea” Cable TV CampaignBBB introduced its first-ever cable TV advertising campaign called “We Invented This Whole Idea.” The campaign covered five media markets resulting in 889,082 impressions.

DENOUNCING SUBSTANDARD MARKETPLACE BEHAVIOR

h Conducted 89 investigations to expose scams and fraud

h Revoked 54 BBB Accredited Businesses for failure to meet BBB Accreditation Standards

h Issued 102 press releases to protect consumers and businesses

ENCOURAGING AND SUPPORTING BEST PRACTICES

h Launched a multimedia testimonial campaign in San Antonio featuring BBB Accredited Businesses that yielded 83 million impressions

h Introduced a cable TV advertising campaign to drive consumers to trustworthy businesses consumers that resulted in 889,082 impressions

SETTING STANDARDS FOR MARKETPLACE TRUST

h Reviewed 8,421 applications and reapplications for BBB Accreditation

h Worked with 216 local companies to promote ethical advertising practices

83%

155

Average Days to Settle Disputes19.5

19,887

2011 DISPUTE RESOLUTION

Dispute Resolution Satisfaction

Total Complaints Handled

Total Mediations and Arbitrations

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2012

BBB 2012 ANNUAL REPORT

ADVANCING MARKETPLACE TRUST

An ethical

marketplace where

buyers and sellers

can trust each other.

VISION

To be the leader

in advancing

marketplace trust.

A letter from the President and CEO

BUILD TRUST: Establish and maintain a positive track record in the marketplace.

ADVERTISE HONESTLY: Adhere to established standards of advertising and selling.

TELL THE TRUTH: Honestly represent products and services, including clear and adequate disclosures of all material terms.

BE TRANSPARENT: Openly identify the nature, location and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

HONOR PROMISES: Abide by all written agreements and verbal representations.

BE RESPONSIVE: Address marketplace disputes quickly, professionally and in good faith.

SAFEGUARD PRIVACY: Protect any data collected against mishandling and fraud, collect personal information only as needed and respect the preferences of consumers regarding the use of their information.

EMBODY INTEGRITY: Approach all business dealings, marketplace transactions and commitments with integrity.

MISSIONBBB ACCREDITATION STANDARDS

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®

2012 marks an important milestone in BBB history as we celebrate our centennial year. For 100 years, BBB has helped consumers make smarter buying decisions, and has evolved to meet the ever-changing needs of the marketplace. The past year has been one of strong growth and continued momentum as we made great strides to strengthen our commitment to our mission of advancing marketplace trust.

In 2011, your BBB experienced tremendous growth through the merger of the Permian Basin BBB to form BBB serving Central, Coastal, Southwest Texas and the Permian Basin. The newly combined territory, spanning 79 counties, increased BBB’s capacity to serve even more consumers and businesses through a single, reliable resource.

An innovative year, 2011 marked the launch of the interactive BBB Dynamic Seal program, allowing consumers to connect online with trustworthy businesses. BBB also launched its new report format, renamed BBB Business Review®. This enhanced review provides more information to consumers and allows BBB Accredited Businesses to highlight their products and services through photos and videos and connect with potential customers through social media channels. BBB also introduced the Cities Served program as an enhancement to its exclusive online directory, BBB Member Pages. This new program helps BBB Accredited Businesses reach their potential customers in each city where they do business.

2011 brought yet another year of outstanding results and recognition. Your BBB continues to be recognized as one of the most influential BBBs in North America, and the efforts of BBB staff have rendered record-breaking results at both the local and national levels. BBB received five international awards at the BBB International Assembly of Better Business Bureaus, including the highly coveted Marshall A. Mott Award, the highest honor a local BBB can obtain. This award recognizes overall excellence in communications. In addition, your BBB received recognition for all facets of BBB work including overall operations, public awareness and the number one business development representative in the nation. BBB was also honored by The NonProfit Times as one of the “Best NonProfit Organizations to Work for,” in addition to earning three MarCom Awards and two Hermes Creative Awards in recognition of its marketing and communication efforts.

In closing, I want to express my pride in the BBB team for their hard work, discipline and dedication to the communities we serve. Congratulations to all BBB Accredited Businesses for earning BBB Accreditation and furthering BBB’s mission of advancing marketplace trust.

Respectfully Submitted,

Carrie A. Hurt, President/CEO

BBB Serving Central, Coastal, Southwest Texas and the Permian Basin

“I just had to take a moment to thank you for the quick way you responded to my complaint. I only wish that every organization in this country could run as efficiently and respond to matters as well as yours.”

”Thank you for your guidance and wonderful service of assistance during a time of adverse customer service. Your online system is wonderful and response time expedient. The positive side of this experience was discovering all of the upgrades of Better Business Bureau.”

“I am thankful for BBB in helping me resolve my complaint. My gratitude for all your efforts cannot be overstated. Although I filed with multiple agencies, the most effective results came directly from actions taken by BBB!”

“Request A Quote is an awesome program! We’ve been getting steady leads since joining, and we’ve been able to turn over more than 85% of the requests we’ve received into booked jobs! We appreciate the great leads as well as the personalized service we receive from your staff. Thanks BBB!”

“I am so proud to be associated with the Better Business Bureau, not only because of the wonderful purpose and history, but also because of the incredible staff we are so fortunate to have. Your outstanding daily efforts on behalf of the members and consumers make the world a better place. Thank you all for the work you do.”

Scott BarrSouthwest Exteriors

Maria Bleier Dell, Inc.

Martin Bomba Window World of San Antonio

Randy Brunnemann Crowne Plaza Hotel Austin

John Carlson Braswell Office Systems

Mike Church Cody Pools, Inc.

Holly Dunham Waco Hyundai

John Dunn Barbed Cross Construction, LLC

Kathryn Frank Kathryn Frank CPA

Tommy Gardner Aransas Autoplex

Bobby Jenkins ABC Home & Commercial Services

Stan Johnson, Jr. Stan’s Heating & Air Conditioning, Inc.

Susan Jones Extraco Banks Mortgage Department

Mat Naegele Lamar Outdoor Advertising

Mitchell Neubert Baylor University

Odis Pippins Fort Hood National Bank

Rick Ravel Karavel Shoes

Philip Robinson Covert Auto Group

Darrell Sander Frost Bank

Angie Sinkfield Seigman, Starrit-Burnett and Sinkfield, PLLC

Linda Smith En Su Casa Caregivers

Patti Smith KVUE-TV, Inc.

Greg Wallace Bogan, Dunlap & Wood Insurance Agency, LLC

2012

BBB Officers & Executive Committee

CHAIRNancy Thompson

Bolton Real Estate Services

CHAIR-ELECT Monica Davis

Davis Group, Inc./Teleclip, Inc.

SECRETARY Bobby Hoxworth

First National Bank - Texas

TREASURER Doug Davidson

BMC Select

IMMEDIATE PAST CHAIR Laurens Fish III

Weed-Corley-Fish Funeral Home

PRESIDENT/CEO Carrie A. Hurt

Better Business Bureau, Inc.

EXECUTIVE COMMITTEE Jon Eckert

BBVA Compass Bank

EXECUTIVE COMMITTEE Jeff Evins

Evins Personnel

EXECUTIVE COMMITTEE T. Getterman

Supercuts

2012 BBB Board ofDirectors

TESTIMONIALS

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