What is business communication? [Guide + benefits]

We communicate every day without thinking about it. When you nod at a polite driver when crossing the road, text your hairstylist about a new appointment, or greet your kids after school — these are all moments of communication where valuable information is passed from one person to another. Sometimes, that information doesn’t even have to be verbal. It can be as simple as a gesture.

In business, things get a little more complicated. Direct and effective communication forms the backbone of nearly all company operations. After all, you can accomplish very few projects without at least some discussion about timelines, expectations, and goals.

Today, we’ll discuss what business communication is, why it’s distinct from other types of communication, and how to get better at it.

Business communication is the exchange of information or ideas — typically via speaking, writing, or an audiovisual component — in a business context. For example, sending your coworker an instant message via Zoom Chat to remind them of an upcoming deadline is business communication in action.

Communication in the workplace presents unique challenges and often higher risks than, say, a conversation with the cashier at the grocery store. The cost of miscommunication can be high — up to $12,506 per employee per year. However, the rewards of good communication are often proportionally high.

The importance of good business communication is perhaps obvious: Without clear and efficient communication, you can’t provide the products and services your customers know and love. This concept may seem simple, but to succeed at work, it’s critical to understand how business communication differs from other types of day-to-day communication.

Good communication helps make your operations more efficient, strengthen your internal and external relationships, and improve brand reputation. 

Bad communication can lead to missed deadlines, strained relationships between clients and coworkers, and incoherent processes that cost your team time and money. 

Incidentally, this is one of the biggest discussions around implementing artificial intelligence (AI). AI adoption can increase efficiency and productivity, but when it comes to communication, AI can struggle to provide a personal touch.

We don’t think (at least consciously) about communication often — but that’s because we do it all the time. And like many things we do all the time and don’t think about, sometimes it’s essential to go back to those processes and habits and make sure we’re doing them the right way.

We generally divide business communication into two types: internal and external. Each has its own quirks, and understanding both is necessary for effective communication in the workplace. 

Let’s look at some business communication examples for each type.

Internal communication 

Internal communication is communication within an organization. While historically, most of that communication has revolved around supporting company goals and objectives, lately many companies have shifted to focus on culture. In fact, 74% of organizations believe internal communication is meant to support culture and belonging. 

A few subtypes of internal communication you’ve probably experienced include upward communication, downward communication, and horizontal communication. 

Upward: From employees to management

Upward internal communication involves the flow of information from employees to management. When employees provide feedback, report issues, or share ideas, that’s upward internal communication in action.

Pros:

• Upward communication helps employees feel empowered since they have a voice in the organization. 
• It can also help improve management decision-making since employees can communicate issues and priorities. 
• Leadership also benefits from upward communication, as it offers transparency into employee perspectives
  

Cons:

• Information can become distorted as it moves up the chain of command. 
• There may be some lack of transparency when employees communicate upward due to fear of negative repercussions. 

Example: A sales team employee identifies a recurring customer complaint and submits a suggestion box entry proposing a solution to the product development team. This suggestion is then used to improve the product and ultimately helps the sales team close more deals. 

Tip: Maintain an open-door policy to create a safe and supportive environment for employees to share their experiences without fear of consequences. 

Downward: From management to employees

Downward communication occurs when information flows from management to employees. This usually involves providing instructions, goals, expectations, or insight about the company’s direction.

Some pros and cons of downward communication include:

Pros: 

• Downward communication is essential for providing clear direction for projects and initiatives.
• Managers can make goals transparent and accessible to employees. 
• Ensure employee projects are aligned with company goals and objectives. 

Cons: 

• Too much downward communication can feel one-sided, so be sure to balance upward and downward communication in your organization. 
• Employees may feel disconnected if communication flows entirely in one direction. 

Example: A manager sends a department email detailing upcoming project deadlines, task assignments, and team goals. This gives all employees a clear idea of upcoming projects and expectations. 

Tip: Establish regular feedback mechanisms or opportunities so that employees can ask questions and provide feedback on instructions and goals provided by managers. This helps facilitate a meaningful two-way dialogue between employees and managers. 

Horizontal: Between peers and departments

Horizontal communication, sometimes called lateral communication, is all communication between peers. This type of communication can happen across departments as long as all parties are at the same organizational level. 

Some pros and cons of horizontal communication include:

Pros: 

• Team collaboration helps reduce information silos company-wide. 
• Horizontal communication can help teams solve problems collaboratively — often making finding solutions faster and easier. 
• Teams can find innovative solutions with more eyes on each project. 

Cons:

• Horizontal communication can increase conflict if not managed well since more opinions are involved per project. 
• Employees can become overwhelmed with too much information.

Example: An engineer from the product development team consults with the design team to align a new feature with user experience best practices. This individual then creates a more optimized product for the end user.

Tip: Establish transparent processes for requesting and receiving horizontal feedback and collaborating across teams. The more transparent you can make these clear channels and processes, the better! This will make relevant information available to all stakeholders and keep managers in the loop.

External communication

External communication is communication between individuals within your organization and individuals outside your organization. Clear and effective communication is crucial for organizational goals and long-term brand reputation. 

Let’s take a look at the three types of external communication: customer communication, stakeholder communication, and public relations. 

Customer communication: Support and engagement

Customer communication may be the first thing that comes to mind when looking for an example of business communication. This often involves solving customer problems with the product or service, troubleshooting, managing customer relationships, and more. 

Some pros and cons of customer communication include:

Pros: 

• Great customer communication helps your clients or customers feel seen, heard, supported, and valued.
• An exceptional customer experience can lead to customer loyalty for life. 

Cons:

• Working with customers can be resource-intensive, as employees need training for customer interfacing.
• Specialized tools for customer communication can also be expensive, requiring significant upfront investment. 

Example: A company might create a knowledge base of frequently asked questions (FAQs) and troubleshooting guides on its website to empower customers to find solutions independently. 

Tip: An omnichannel contact center experience can streamline customer communication and help your team provide highly personalized responses. 

Stakeholder communication: Reporting and updates

Stakeholder communication is similar to upward communication but takes place outside the company. It can involve sharing company updates with investors, suppliers, or the wider community. 

Some pros and cons of stakeholder communication include:

Pros: 

• Communicating openly and building trust with stakeholders or shareholders, which can be valuable for the company. 
• Clear and positive stakeholder communication fosters long-term support with key community members.

Cons: 

• Providing too much information to stakeholders can overwhelm them, muddying the waters. 
• If there are errors in predictions or data, you may risk damaging the stakeholder relationship. 

Example: A company might report a successful year to investors by providing a list of achievements, such as 15% revenue growth, improved profit margins, and/or expansion plans.

Tip: Tailor all communications with stakeholders to each group’s interests, providing the most relevant information for further understanding your company. 

Public relations: Managing the company’s image

Finally, public relations (PR) involves sharing information from a company like yours to the public. This process usually involves shaping and maintaining a particular narrative or image to build a relationship with the audience. 

Some pros and cons of public relations include:

Pros:

• Effective PR strategies are essential in managing crises, as they can help to mitigate damage and shape public perception during difficult times. 
• PR can enhance credibility since third-party endorsements often carry more weight than paid advertisements.

Cons: 

• Building an effective PR campaign takes time, from forming relationships with the media to crafting the perfect messages.
• PR can also be resource-intensive, as multiple stakeholders may need to review on each end.

Example: A company proactively issues a press release to address a negative news story, clarifying the situation and taking responsibility for any shortcomings.

Tip: Stay engaged with your audience through multiple channels, including social media, press releases, and events. Staying connected with your audience helps build a positive presence in the community.

Now that we’ve covered the different types of communication, let’s talk about how to reach your audience with each kind of business communication. These are some of the most common business communication channels — most of which you’ve probably utilized at one point or another:

• Email: Best for formal communication and documentation
• Instant messaging: Favored for quick, informal conversations
• Video conferencing: Get face-to-face interaction from anywhere in the world
• Project management tools: Usually used to coordinate tasks and projects
• Social media: Best for engaging with clients and the public

Building efficient and effective business communication practices is essential to building and maintaining a successful business. After all, if you can’t communicate effectively, all parts of your business will be less efficient than they could be. 

With this in mind, we’ll look at five ways to improve communication within your operation. 

1. Set clear objectives and prioritize blockers

Setting clear expectations and goals for your team makes prioritizing easier across the board. By establishing clear objectives (and prioritizing problem areas), you can better track progress and make informed project adjustments as needed. 

2. Designate communication roles and responsibilities

A good communication process will struggle without comprehensive training! Make sure to train all team members in the communication expectations for their roles and responsibilities.

3. Invest in the technology your business communication needs

To empower your employees to communicate effectively, invest in technology like Zoom Meetings to keep everyone connected and on the same page. Video meetings and team chats centralize communication and make feedback and collaboration easy. 

4. Encourage feedback and discussion on communication processes 

Communication processes are rarely just set-it-and-forget-it. Encourage employees to give feedback on both internal and external communication processes to improve continuously. A transparent review process and open-door policies can go a long way in achieving this goal.   

5. Measure effectiveness and adjust processes accordingly

Finally, keep an eye on the success of your communication processes. Is information being distributed successfully? Is anyone confused? Are there regular moments of misunderstanding or need for clarification? 

Pinpointing these moments can help you identify where you need to adjust your business communication processes.

We’ve covered the types of communication in business and some common use cases; now we’ll go over practical applications. These tools can help your team do more — and do it more efficiently!

VoIP

VoIP, or Voice over Internet Protocol, is a tool that makes international business calls simple and easy. It functions just like a regular telephone but uses the internet to reach the other person on the line. This technology is more reliable than regular phone calls and can help your team communicate globally without interference. 

You can now add AI-powered features to many cloud VoIP packages, such as note-taking, SMS capabilities, and call summaries. 

Team chat software

Team chat software is indispensable to business communication in the modern workplace. Instant messaging through team chat is faster and often more efficient than email, allowing quick and easy communication with teammates and supervisors. 

Email

We all know and love the power of email for professional communication. But did you know you can do more with email than ever before? Zoom Mail Service offers end-to-end encryption, easy appointment scheduling, and customizable domains, all within the mail client. 

Contact center software 

Finally, a contact center software tool is essential to customer-facing communication today. When considering the customer’s preferences as part of an ideal customer experience, an integrated video-based contact center just makes sense.

Check out this checklist to see if your business could benefit from a cloud-based contact center solution.

If you feel inspired by these business communication examples and are ready to examine your processes again, we hope this overview of the available technologies and tools will help you optimize for success. Communication is a critical part of business operations — and the tools necessary to facilitate good communication are just as critical.

Ready to take the next step toward a more collaborative workplace? Bring your team together with virtual video conferencing from Zoom.