Blog/What is Business Communication & Why Is It Important?

What is Business Communication & Why Is It Important?

What is Business Communication & Why Is It Important?

Business communication is vital for organizations as it helps ensure everyone in the organization is working toward the common goal. By understanding the different types of business communication, you can tailor your message to suit your audience and accomplish desired objectives.

In this blog post, we'll take a deep dive into what business communication is, its types, and why it's crucial.

What Is Business Communication?

Business communication is sharing information sharing within and outside an organization. It involves the exchange of ideas, knowledge, and messages between employees, customers, and other stakeholders. It includes everything from sharing ideas and thoughts to sharing information and data to keep everyone coherent and clear about their goals.

Type of Business Communication

Business communication can be - upward, downward, lateral, or external.

1. Upward Communication

Upward communication is communication between subordinates and their managers. For example, a manager communicates with the CEO, or a middle manager communicates with a top-level manager.

There are many reasons why upward communication is essential.

  • It allows employees to share their ideas and suggestions with those who have the power to make decisions.
  • It enables managers to inform their superiors about what is happening within the organization.
  • It allows employees to express their concerns or ask for help when needed.

Upward communication is essential as without it, there would be no way for leaders to have a pulse of the organization and for subordinates to voice their opinion.

2. Downward Communication

Downward communication is between the top and lower levels of the organizational hierarchy, including the CEO communicating with a manager or a top manager communicating with a middle manager. In short, it is a top-down communication where instructions or suggestions are transferred from higher to lower levels.

3. Lateral Communication

Lateral communication within an organization is generally between peers. Lateral communication is done for collaboration, and examples include a manager communicating with another manager or an HR manager communicating with a marketing manager.

It results in increased activity and innovation, collaboration, improved decision-making, and a greater understanding of the company's goals.

4. External Communication

When you communicate with your customers, clients, and people outside your organization, that would be external communication. External communication could be through advertising, public relations, and customer service. Email is another great option for external communication, but you need to regularly review your email list to make sure that all email addresses are legitimate. To do so, you can use an email verification API.

Similarly, an organization's external communication determines its success or failure in Outreach Campaigns. Poor communication results in poor engagement and business. Good external communication can help you resolve issues quickly and efficiently and can build customer loyalty.

Effective external communication helps you stay informed about your industry and alert to potential opportunities or threats. It also allows you to build a bond with your customers and partners.

Why is Effective Business Communication Important for Business?

1. Earn Client Trust

Be an effective communicator to earn client trust. This means being clear, concise, and respectful in your interactions. It also means being honest and transparent about your business practices.

Your clients need to feel like they can trust you, starting with communication. Communicate effectively to build a trustful and long-lasting relationship with your clients.

2. Good Communication Builds Teamwork

Organizations need the peaceful cooperation of team members to improve productivity. If employees have conflicts, they cannot reach their full potential, as conflicts create an energy drain.

Good communication builds teamwork by preventing conflicts and making employees feel valued. When team members feel they can openly communicate, they develop respect and trust toward one another. This leads to a cohesive team working together to achieve common goals.

3. Communication Within a Company Impacts Customer Service

Communication within a company impacts customer service in a few ways.

  • Customer interaction will be negatively affected if employees are not comfortable collaborating or delegating tasks among peers.
  • Employees not on the same page can create a lack of trust among customers, who may take their business elsewhere.
  • If a company's internal communication is not efficient, it will eventually lead to breakdowns in customer service.

Every company needs effective communication to engage and satisfy clients.

4. Generate New Ideas

New ideas are vital for the success of an organization. They come from exchanging ideas and brainstorming. For a successful brainstorming, ensure to integrate the mind mapping technique as it is effective when it comes to organizing ideas and is easy to create by using a mind map maker. Internal communication is key to making this happen. Encourage open dialogue and allow employees to be heard.

Ensure your employees feel comfortable sharing their thoughts and ideas with you and their colleagues. Motivate employees to engage and work better by making them a part of your decision-making process.

5. Increase Productivity

Communication is the key to any successful organization and is especially important for increasing productivity. Effective communication ensures that everyone knows their duty and what is expected of them. Therefore, it is easy for team members to perform their due responsibilities, remain clear, and act responsibly.

6. Reduce Employee Turnover

Employee turnover can be a big problem for businesses, creating a resource drain. To reduce employee turnover, it's essential to ensure that employees know their duties.

You can help reduce stress and create a more positive work environment by clearly communicating expectations and providing ongoing training. This can lead to increased job satisfaction and loyalty and, ultimately, lower turnover rates.

It should explain the importance of business communications for any business.

7. Build a Better Company Culture

A positive company culture values collaboration, respect, and open communication.

Unfortunately, only some businesses have a positive company culture. Some have downright toxic cultures. To build a better company culture, you must prioritize communication and implement the following:

  • Encourage open communication
  • Value collaboration
  • and respect differences.

Level Up Your Business Communication with Community Phone

Community Phone Business Phone Service

If you're looking for a simple, reliable phone service, Community Phone is perfect. The landline service provides clear, consistent calling without needing the internet. Plus, it's fast and easy to set up, so your phones can be up and running in no time.

You should consider using Community Phone to level up your business communication. Community Phone is a service that offers several features that can be beneficial for businesses, including call forwarding, landline texting, live call transfer, 3-way calling, and automated answering service.

How Does It Work?

Community Phone’s revolutionary landline base ensures your phones are truly wireless by connecting them to cell towers in your area. The built-in antennas amplify signal strength in low-reception areas ensuring excellent call quality. Here’s how you can set up the landline base in under 30 seconds.

  • Connect the base to a power outlet
  • Hook your phone to the landline base and power the device on.

Once all the lights on the landline base turn green, you can make and receive calls.

Community Phone Business Features

Call Forwarding

With Community Phone, you can forward your calls to a cell number to stay in touch with your customers or clients. This feature is suitable for people who want to add a second number to their cell phones for business purposes or want to avoid investing in a landline setup.

Landline Texting

Stay in touch with your customers by sending them personalized text messages from your user portal. The landline texting feature lets you send and receive unlimited messages from your business landline.

Custom Dial Menu

Program the automated answering service accompanying the Community Phone custom-dial menu to route calls, share information with customers, or route to voicemail. Impress your customers by creating a custom greeting for your business, or share important information through the dial menu.

Call Routing

Have several phones in your business ring simultaneously, or calls roll over from one number to another in case the first one is busy with the Community Phone call-routing feature. Impress your customer by minimizing hold time and showing them that you appreciate their time and value doing business with them.

Talk to the Community Phone business specialists at 866-219-7019 to learn more about fantastic calling features and how you can tailor them to your business.


What are the 7 C’s of Business Communication?

The 7 C’s of Business Communication are: Clear, Correct, Complete, Concrete, Concise, Considered, and Courteous.


Communication is an art and science that can make or break a business. As a business leader, you must ensure that the organization's objectives, aims, and culture have been communicated to the last employee and that everyone is on the same page.

Get the Community Phone business service to give your team the tools to collaborate, resolve conflicts, increase productivity, and increase revenue.

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