Why Is Effective Communication Important in Business?

by Lisa McQuerrey; Updated September 26, 2017

Regardless of the type of business you're running, effective communication between colleagues, management, staff and customers is vital to ensuring clear, concise and precise operations.

Common Goals

Effective communication is important in business because it ensures all employees are on the same page when it comes to fulfilling the organization's goals and objectives. Regular meetings, project plans, email updates and status reports are all vital forms of business communication. These vehicles help employees stay apprised of progress and direction of projects, changes in direction, holdups or outside influences that can impact the viability of a business objective.

Meeting Deadlines

Working within established time parameters is crucial for all businesses. Communicating with one another about delays, missed shipments or orders and backlogging problems is critical to ensuring budgets stay on track and overage costs are avoided or minimized. Communicating about deadlines can also help ensure high levels of productivity and reduce the potential for errors.

Connecting With Customers

Communication is a cornerstone of quality customer service, as it helps clients recognize their importance to a business or organization. Communicating about the status of a work order, clarifying information, responding in a timely manner to questions and requests all help foster good will with customers. Prompt and precise communication can make customers feel the business is focused and engaged in providing exceptional service. This might be accomplished through one-on-one in-person conversations, telephone calls, personalized emails or even vehicles such as email newsletters or website updates.

Communicating With Vendors and Suppliers

Vendors and suppliers can make or break a business, particularly in industries that rely on on-time deliveries, adequate product stock or other essential services. Communicating needs about schedules, drop-offs and pickups, delays and misdirected orders are all crucial to effectively running day-to-day business operations. Ongoing communication also helps alert vendor management of potential dissatisfaction and allows them to take corrective action before it becomes a more serious problem.

Video of the Day

Brought to you by Techwalla
Brought to you by Techwalla

About the Author

Lisa McQuerrey has been a business writer since 1987. In 1994, she launched a full-service marketing and communications firm. McQuerrey's work has garnered awards from the U.S. Small Business Administration, the International Association of Business Communicators and the Associated Press. She is also the author of several nonfiction trade publications, and, in 2012, had her first young-adult novel published by Glass Page Books.

Cite this Article A tool to create a citation to reference this article Cite this Article