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by Kristie Lorette, Demand Media; Originally published @ http://smallbusiness.chron.com/importance-good-communication-business-1403.html

Communication is an aid used in everyday life – be it personal or business. In the business world, good communication is important for the daily operation of the company, but can also affect sales and profitability. Without good business communication, the internal and external structure of a business can face numerous challenges that can ultimately lead to its demise.


The two primary forms of communication are one-way communication and two-way communication. One-way communication in business is when the business sends out a message to its customers or employees, but doesn’t accept responses from the customers or employees. One-way communication is important because it allows the business to share information with the customers who can benefit from the company’s products or services. One of the most common forms of one-way communications in business is advertising, such as print ads in newspapers and magazines on billboards are examples. Two-way communication occurs when customers can also respond to the company in business communication. Social media marketing is a form of two-way communication has gained in popularity because it not only allows businesses to communicate with its prospects and customers, but it also allows the prospects and customers to respond.


When communication lines are open between a business and its customers, it can directly affect the sales of the business. When a business effectively communicates to prospects and customers how its products and services can benefit them, it converts prospects into customers. Good communication ultimately boosts the bottom line of a business.


Good communication can take on several different forms. The three primary forms of communication are verbal, written and expressed (body language). All three forms of communication are used internally and externally in conducting business. Since each person processes information differently, it is wise to communicate with a combination of these Communication_Phoneforms of communication. For example, some people take in and process information better when they hear it (verbal) while others process things better when they can see and read it (written). For this reason, many businesses send out information to their employees and their customers in several different ways. A business owner may conduct an employee meeting where an item is announced verbally so employees can hear the information and watch the body language of the presenter. In addition, an email memo may go out to the employees as a follow-up to the announcement. In promoting its product, a business may follow a similar pattern with its marketing communication to its prospects and customers. An email may go out that contains a video of the business owner making the announcement and offering a special to buyers so customers can see and hear the announcement. A written sales letter may be sent in the mail to the same audience a few weeks later and weekly ads may also be printed in the local newspaper to cover reaching those who need to see the information in writing.

Communication_Message in a BottleBenefits

When the internal forces of a business are working toward communicating the same message to vendors, suppliers and customers, good communication can also lead to a boost in sales for the business. Essentially, good communication creates a win-win situation. The customers who can benefit from the company receive the messages they need to make them aware of the company and to make a purchase, which in turn boosts the sales of the company.


Perception plays a pivotal role in good communication. Communication may only be beneficial when the message the business is sending is the same as the one received by its customers. If customers misinterpret the message, it can have detrimental effects on a company’s sales.

About the Author

Kristie Lorette started writing professionally in 1996. She earned her Bachelor of Science degree in marketing and multinational business from Florida State University and a Master of Business Administration from Nova Southeastern University. Her work has appeared online at Bill Savings, Money Smart Life and Mortgage Loan.