Business

The Importance of Business Communication

In an increasingly technological world where customers and employees of companies are spread out globally, the importance of business communication cannot be overlooked. Business Communication skills are essential for the success of any company. They build an organizational culture, increase productivity and motivation, and improve customer satisfaction. However, how can one communicate effectively in a business environment? What exactly is business communication? We will analyze these questions in this article.

What is Business Communication?

Business communication can be defined as the process of sharing information within and outside of an organization. All activity within an organization depends on effective business communication.  The communication that takes place within an organization can be classified as internal communication. Inter-organization or communication with external parties is known as External communication. The key to successful communication is finding the right balance between the two.

Internal Communication

Internal communication can be Upward, Downward, or Lateral. Upward communication is that of an employee with their superiors, while downward communication is the other way around. Lateral communication deals with inter-departmental communication among co-workers.

External Communication

This type of communication is that of with anyone outside the organization. This may include customers, vendors, other organizations, suppliers, and so on. This type of communication is important in order to protect the brand and reputation of the company.

Importance of Business Communication

Increased Productivity

A team always works better than an individual. This is because no individual can have all the qualities necessary to complete bug tasks. Thus, Teamwork becomes essential. Hence, to work as a team an collaborate, effective communication is necessary. A lack thereof will lead to wastage of time and money with unsuccessful results. Effective communication among team members, however, will improve productivity and lead to better results.

Read: Improve Productivity at work

Increased Innovation

Innovation is the key to continuous success for companies, be it to maintain competitive advantage or gain it. Innovation, however, comes about through the bouncing off of ideas and research. Coming up with better ideas is largely down to effective communication. As people communicate their ideas, teams can work among themselves, give their input, and perfect that idea. That is how innovation is achieved, through continuous communication among team members.

Read: The First Mover Advantage and Why It May Not Be Important

Better employee engagement and motivation

It is essential for an organization to communicate its goals and expectations to employees effectively. It is even more important for them to recognize achievements and failures in order to motivate employees to do better or maintain standards. Thus, they have to communicate with them thoroughly to ensure maximum engagement and motivation is achieved.

Customer Satisfaction and Retention

This has more to do with external communication. Customers are the most important part of a business, and no business can survive without satisfying them. Therefore, taking feedback from them and acting on it becomes essential in satisfying and retaining them. Hence, this requires businesses to establish a smooth channel of communication between the organization and the customer.

Higher Profits

All of the above reasons add up to one thing: better performance and image of the firm measured by increased profits. If organizations communicate effectively and increase productivity, innovate, satisfy customers and employees, it will earn huge profits. Hence, effective communication would put the organization in a better financial position.

Steps of Effective Communication

So, how can you communicate effectively in a business environment? Here are a few steps you can follow:

  1. Firstly, you must establish trust with those you communicate with. If trust does not exist between the two parties, communication will never be possible.
  2. Be concise and clear. This is essential to fill in any communication gaps that may exist. Repeat yourself if necessary.
  3. Listening is more important than speaking. Entrench this in your mind. Listening to the other party enables them to trust you and for you to understand them clearly. Mutual understanding is essential for effective communication.
  4. Body language should be welcoming. While communicating, you must make sure the other party is at ease and trusts you. Keep your body language open and friendly.
  5. Lastly, empathy is essential for any sort of communication to take place. You will never be able to reach an agreement or achieve a target if you do not put yourself in the other person’s shoes and see things from their perspective. This is the most important quality a communicator should have.

As you can see, the importance of business communication cannot be overlooked. The ability to fill communication gaps is what separates successful companies from the very successful ones.

Let us know your thoughts in the comments below!

Syed Muhammad Ismail

Writer and Content Developer at PACE Business. With interests in Sports and Business, Ismail combined the two when he started his entrepreneurial journey. Along with the PACE Business, he has been running a sports management company, manufacturing Awards and Memorabilia for International sporting events. Check us out at: @sparkinnv