‘Word
of mouth’ recommendations just got so much better!
‘Word of mouth’ recommendations are generally accepted to be the best
form of recommendation one can get. Unfortunately for many consumers,
relying on ‘word of mouth’ recommendations can result in very costly
mistakes, poor standards or disappointment in the product or service
quality provided, or having to deal with rip offs, scams, unscrupulous
operators or service providers from hell.
‘Word of mouth’ recommendations need to be taken with caution, they can
be very unreliable or misleading as they are often made by a mate of a
mate, or by someone who is biased, or owes somebody a favor or slab,
gains a commission or some other form of undisclosed payment or
kickback.
Consumers are constantly being advised to do their homework very, very
carefully before engaging service providers or businesses offering their
products or services.
Quality ‘word of mouth’ recommendations can also be priceless, yet they
are often difficult for many consumers to access, or for genuine quality
service providers to effectively market or promote. Allowing for the all
the positives and negatives associated with ‘word of mouth’
recommendations they formed the basis of this initiative.
Selection guidelines
The selection guidelines were developed in consultation with the Federal
Bureau of Consumer Affairs, the Office of Fair Trading and Business
Affairs, and Small Business Victoria. Consumer, Small Business and
Industry groups have also generously contributed.
Part of the selection process consists of a police check, a random
selection and impartial and comprehensive evaluation of a client list
requiring a minimum 85% support of an applicant. Businesses must also
meet all statutory and regulatory requirements to operate legally.
Businesses must be operating for a minimum period of three years before
being eligible for selection. They must also provide current copies of
relevant insurance policies.
Applicants must be suitably qualified and where applicable,
appropriately registered and licensed. They must also commit to
continually striving for higher standards and applying ethical work
practices.
The sourcing of information from government authorities including the
sourcing of adverse findings also form part of the selection
process, as
do appraisals of independent character and business referees.
Industry memberships, codes of practice, the use of Australian Standard
contracts, and Quality Assurance management systems are all favorable,
however they are not pre requisites. Other considerations and supportive
material is also taken into account.
Earning Selection
Businesses approved to display the symbol are independently selected,
endorsed and acknowledged for providing quality standards. They have
earned selection following strict government guidelines and have
successfully documented and demonstrated proven histories of high
standards.
Restricted numbers not every Tom, Dick, Harry or Harriet
The Office of Fair Trading and Business Affairs (OFTBA) recommended
limiting the numbers of accredited service providers in any particular
area or industry. This serves to add prestige, greater competitive
advantages and helps to retain the integrity and validity of the
program. The number of accreditations in any particular area or industry
is aimed at effectively servicing and meeting consumer needs.
Freedom to choose
This initiative is a voluntary program. Businesses can choose whether or
not to have their standards or business histories tested. Some service
providers may choose not to participate, even though they would qualify
for selection. Many others would simply not meet the government
selection guidelines or be prepared to have their business histories or
standards independently scrutinized.
Nurture government consumer community business relationships
NAITD will continue to lobby, foster and nurture ongoing working
relationships with the appropriate federal and state government
authorities, together with interested consumer, community, small
business and industry groups. If you wish to register an interest please
email interestgroup@naitd.com.au
Some
comparisons, observations and considerations
The Office of Fair Trading and Business Affairs compared this initiative
to the heart foundations tick program whereby consumers can make food
choices that should be good for them, or as in this case, businesses
that should be good for them.
The Federal Bureau of Consumer Affairs considered this initiative to be
unique and to have enormous potential for helping consumers and approved
service providers.
A former Minister for Small Business Victoria and a former Shadow
Minister for Consumer Affairs also considered this initiative to be
unique, meet a genuine need and to have a great deal of merit. Political
advisers suggested there should be a program like this for politicians!
This initiative has been described by a former state government member,
as Australia’s answer to American consumer advocate Ralph Nader. The
Department of Justice compared NAITD to the Better Business Bureau.
NAITD has also been compared to Quality Assurance programs.
NAITD has also been considered by many, including an economist, and
marketers too be unique and have global applications.
A former City of Casey Mayor has also encouraged this initiative. He has
provided office space within the City of Casey Complex Cranbourne.
Senior marketing lectures from RMIT and the Chisholm Institute, along
with business advisers considered NAITD could help many businesses involved in various sections of the business community
like
financial advisers, professional consultants, as well as many others,
including small manufactures that stand by their products would also
benefit.
Small Business Victoria considered that not only small, medium size
businesses would also benefit.
Government invited to implement, develop and control this initiative
The Victorian government was informed that this initiative has the
potential to generate substantial funds, help consumers avoid poor
standards and make informed quality choices, while providing genuine
quality service providers with a very constructive, inexpensive and cost
effective way to gain greater exposure, effective marketing, referrals
and more business opportunities.
The government was also informed that this initiative could create many
new and real employment opportunities for a vast number of skilled and
unskilled people and that it would not need to rely on, or require
government funds to function.
NAITD informed the government that it was advised to register as a
private body as compared to a non - profit body and offered to dismantle
and restructure its composition to meet with any government
requirements. NAITD invited the government, without reservation, to
implement, develop and control this initiative. The offer is still open
for state or federal government consideration.
