The Importance of Effective Business Communication

Effective Business Communication is the key to business success!

This is a common word in board room meetings or business team meetings, but as it turns out, it’s often easily ignored.


 effective business communication

Communication is the key to the success of a business or start-up. It is how you communicate or do your presentation that will make you onboard a new client or lose the chance. Ideally, the major factor that adds to the ‘bottom-line’ is the style of communication.

What is the bottom line essentially?

The bottom line is the net income of business after deducting all the expenses. If the expenses outweigh the invested capital, it means your bottom line is negative.  Similarly, when you’re making losses, chances of staying in business get slim by the day.

The bottom line determines whether you continue with your operations or hit the exit door. And without effective communication, you are the next to exit the market. 

Whether you are just starting, the CEO of a company, a manager or just an entry level employee, you need to be a great communicator if your company is to succeed?

What is effective communication?

Simply put, effective communication is the communication between two or more persons where the intended message is delivered, received and understood by the recipient in a manner that’s intended by the sender. 

The underlying idea in effective communication is that all the parties (both the sender and receiver) must have a common understanding of the message. 

Additionally, effective business communication is when the information shared by the stakeholders, employees or other businesses contributes to the ‘bottom line’.

How is effective business Communication Important for Business Success?

  • Customer service relies on effective communication

You cannot satisfy your customers if you do not know what they want. How do you know what they want? You need to listen, ask questions and fully engage your customers to understand what they need.

When you understand the needs of your customers and respond to their feedback on various media platforms, there are high chances of having repeat customers and gaining referrals as well. 

Good customer service is the key to customer retention. Thus, your business communication style is what makes the difference between customers promising to come back or cursing your services.

For this reason, it is important to note that the success of business depends on the customer base. The wider the customer base, the higher the revenue.

Benefits of effective business communication 

  • Effective Communication builds functional teams

As a matter of fact, leadership starts with being a good communicator. The team leader should communicate to the team in a manner that inspires and motivates them to work towards the common goal. Ultimately, the result is employees who are responsible, performs their duties and always keen on achieving the organization’s objectives.

  • Communication is key for better growth.

In a business setup where effective communication is valued, there’s a proper flow of information within employees and departments.

A smooth communication system is a big win for the company since implementation of strategies are timely. Also, you are able to create a good reputation with  clients and ultimately generate good revenue. 

  • With effective business communication, you too win.

We tend to think of everything we do for our business ventures or companies to be of help only to the company. No, it’s never all about the company, you’re improving yourself too.

When you improve your corporate communication, your entire communication life improves. Moreover, being an effective communicator sets you apart from your peers, improves your social life… and who knows?  You might land some business from your social circles.


According to the statistics of  successful companies due to excellent customer service which is anchored on effective business communication, it’s easy to tell the need to invest in good communication. It’s probably all you need to hit the dream profit margin.