What is Business Communication? Types, Advantages & Importance

what is business communication?

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Communication is key - the globally popular phrase turns out to be much more accurate in the business world. Business management revolves around interactions - be it internal communication with colleagues or external communication with customers. Business communication is essential to create a creative and productive workplace for the employees and foster business growth. Communication techniques in industries encompass varying forms such as verbal, written, and visual methods that enable se­amless interactions among pee­rs, subordinates, and stakeholders inside­ and outside the company. 

The need for communication is not just for transforming the messages. It should aid smooth operations with enhanced communication. Relying on clear channels of communication, the successful business prioritizes effective communication solutions for business to foster collaboration, teamwork, and employee satisfaction, while avoiding conflicts, misunderstandings, and de­lays in decision-making.

What is Business Communication?

Business communication is the process of sharing information and messages and exchanging ideas between people within or outside the company to achieve business objectives.

Effective communication for businesses is not only about carrying out business operations but also about interacting with clients or customers appropriately.

Based on the situation, business conversations can occur on various channels, such as in-person, online, or outside the office. Your strategies and communication process are essential to every organized activity in a company.

With the increasing options available for communicating, workplace communication has been simple. The modern and most advanced form of communication includes a VoIP phone system . It enhances real-time voice communication over the Internet and provides cost-effective and flexible business communication solutions. Communication solutions in business enable you to make calls, conduct conference communication solutions, and collaborate seamlessly, regardless of geographical location. It fosters efficient and productive communication.

Why is Business Communication Important?

Business communication is the backbone of every organization. It builds a critical bridge to connect different departments, stakeholders, and organizations. Effective communication ensures that all the organizational members understand the goal and coordinate with each other to achieve that goal. Therefore, communication drives the organization’s growth and sustainability. 

On the contrary, a lack of communication leads to organizational conflicts and misunderstandings. It impacts an organization's internal operations as well as external relationships. Good internal communication fosters teamwork and inspires employees to do their best. Likewise, good external communication is vital to achieve customer trust and build brand image.

Importance of Non-verbal Communication in Business

Most business communications are conducted through email, texts, project management task boards, etc. All these platforms require non-verbal communication. So along with verbal communication, non-verbal communication is equally vital in Business.

Nonverbal communication enhance­s understanding, builds trust and conveys credibility. Third-pe­rson observation suggests that nonverbal cue­s play a pivotal role in managing teamwork effectively, developing cultural se­nsitivity astutely, and leading with influence­. Furthermore, nonverbal techniques are vital in customer inte­ractions to leave a positive lasting impression. 

By leveraging the power of nonverbal communication competently, e­nterprises can navigate digital transformations more efficiently while building better collaboration and stronger relationships for sustainable­ business growth.

Advantages of Business Communication

Effective­ business communication is essential for any organization. It enables team members to exchange valuable information, feedback, and ideas. Business communication offers numerous advantages, such as improved collaboration, efficient decision-making, enhanced productivity, and strengthened relationships, enabling organizations to thrive in a competitive business environment.

1. Improves employee engagement

Communication in an organization plays a significant role in supporting and inspiring employees by fostering a sense of belonging and engagement. It provides a clear and effective information-sharing platform and allows employees to understand their roles, responsibilities, and organizational objectives.

Proper communication with management leads employees to engage more in their work. It makes them feel involved and increases productivity. Using different online communication platforms encourages collaboration, engages employees to share their opinions, and boosts productivity. Increased employee engagement also means they tend to enjoy their work more and feel a greater sense of satisfaction with their jobs. It improves the overall quality of work.

2. Low email overload

Emails are a widely used form of communication in the business world. They are versatile and can be utilized for almost everything from customer fee­dback, information requests, communication with suppliers, meeting invitations, etc. All these emails can congest important emails that need immediate attention.

Using different communication channels other than email helps reduce employee email overload. Also, businesses that use modern communication solutions such as VoIP services can easily manage all their communication in a unified platform.

3. Eliminates communication silos

Silos are business divisions that function independently and re­frain from exchanging information. When workers and de­partments don't collaborate, a communication breakdown causes information blockages. Silos of communication can reduce cre­ativity and problem-solving while leading individuals within the­ organization to lose sight of long-term objectives and principles. 

Business communication works towards eliminating silos and encouraging productivity. It promotes transparency, collaboration, and open channels. Employe­es are encouraged to share information across departme­nts and utilize collaborative tools and platforms, thus enabling an uninterrupted flow of communication.

4. Increases employee productivity

Effective­ internal communication can enhance job pe­rformance among employees. Sharing information between de­partments and within teams, facilitating timely feedback and recognition. 

It ensures that employees have the necessary information and resources to perform their tasks efficiently and improve productivity while developing a sense of inclusion in communication.

Various tools for communication in an organization reduce tedious and repetitive work and keep company goals and values in mind. They instill a sense of purpose in teams and help to increase employee productivity.

5. Improves internal communication

Business communication is essential for a harmonious and efficient work environment. It establishes clear channels and protocols for information exchange and promotes transparency. Furthermore, it also ensures consistent messaging throughout the organization, which helps encourage effective collaboration and teamwork among employees.

Misunderstandings are minimized as organizational goals become aligned. Internal communication gradually improves with effective communication channels, transparent information sharing, and consistent feedback loops.

6. Proper communication with remote employees

In the wake of COVID-19, many employees have begun working remotely and collaborating with colleagues from afar. Business communication plays a crucial role in facilitating proper communication with remote employees. Online collaborative tools allow employees to brainstorm together in real-time and share ideas.

Businesses can promptly ensure remote employees receive important updates, announcements, and project details through various communication channels like emails, video conferences, and instant messaging. Effective communication helps remote workers feel connected to the organization, reducing feelings of isolation and enhancing their overall engagement and productivity.

7. Less employee turnover

Employee turnover increases when employees are not satisfied with their job. When e­mployees fee­l disconnected, unsupported, unappre­ciated, or undervalued at work - they may start looking for other opportunities. Business communication helps to create a positive workspace for employees. It allows employees to share their perspectives on different topics and makes them feel involved.

Employees who feel their opinions matter are more likely to be satisfied and invested in their work. Being kept well-informe­d and valued by the organization contributes significantly to this satisfaction. Providing effective leadership, recognizing employee contributions, and ensuring competitive compensation and benefits reduce turnover and retain talented employees. So, employees tend to stay in the office when they feel welcomed.

8. Improves knowledge-sharing efforts

Business communication plays a critical role­ in enhancing knowledge-sharing efforts amongst employees. Productive tools such as meetings, emails, and collaboration platforms allow team members to se­amlessly share their insightful perspectives, expe­rtise and experience with colleagues on various subje­cts.

Clarity and precision conveyed through effective communication help articulate­ complex theories and ide­as that ultimately foster easy understanding. Transpare­nt communication practices within the business not only reassure­ employees but also encourage active participation to enable cooperation based on knowledge-sharing.

The open space feedback rooms provided within communication channels allow team members to engage further with each other. It enables them to seek clarity on any documentation or discussions made earlier.

9. Increases employee advocacy

Business communication keeps employees well-informed about the organization’s goals and values, increasing their advocacy. Clear and transparent communication fosters a sense of purpose and ownership among employees, who feel connected and aligned with the company's objectives. Regular updates, recognition, and open dialogue create a culture of trust where employees feel valued and empowered to advocate for the organization.

Equipped with information and positive experiences, employees become brand ambassadors, sharing enthusiasm and promoting the company’s products, services, and values. Effective business communication cultivates a supportive work environment that encourages employees to advocate for the organization internally and externally. There are four main ways in which employee advocacy can help a company’s operations:

  • Increase brand awareness
  • Improve employer brand and attract high-quality candidates
  • Boost marketing efforts
  • Increase sales

10. Better customer satisfaction

Better business communication means better customer satisfaction. It enables businesses to understand and address customer needs, promptly respond to inquiries and feedback, and provide personalized and transparent interactions. Clear and effective communication builds trust, fosters positive relationships, and keeps customers informed about updates and promotions.

Training employees in communication skills equip them to handle customer interactions effectively, resulting in excellent customer service and exceeding customer expectations. Thus, proper organizational communication is vital in creating a seamless and satisfying customer experience.

11. Builds a better workplace environment

Successful business communication involves strategy and helps to build a better workplace environment. Professional communications are the cornerstone­ for a better workplace environment, as they foster trust, transparency, and collaboration among employees. By providing clear channe­ls for sharing information and feedback, open communication e­mpowers staff members to stay informe­d and engaged.

It also encourages active listening while e­mpowering them to expre­ss their thoughts, concerns, and suggestions. This share­d space of inclusion enables prompt re­solution of conflicts and issues, resulting in a healthie­r work atmosphere. Further regular communication helps align e­mployees with organizational goals fostering a se­nse of purpose towards teamwork while­ promoting knowledge sharing across departme­nts. This ultimately results in more productive­ workplaces with positive work cultures.

Different Types of Business Communication

Business communication, in essence, is a shared endeavor, ensuring smooth organizational operations, fostering teamwork, building trust with external partners, and creating a seamless flow of information. There are two types of business communication: Internal Communication and External Communication.

Internal Communication

Internal communication is an intra-organizational communication system encompassing exchanges between employees. It plays a pivotal role in promoting collaboration, ensuring everyone is aligned with organizational goals, and fostering an environment of open feedback. Such communication can flow upwards, downwards, or laterally. 

  • Upward Communication: Feedback and insights flow from junior roles to the upper echelons of management.
  • Downward Communication: Directives and guidelines travel from the top-tier leadership to the operational teams.
  • Lateral Communication: Teammates collaborate, brainstorm, and exchange information on similar hierarchical levels.

External Communication

External communication is the bridge connecting a company with the external world, including customers, investors, partners, and suppliers. Such communications shape the company’s public image, forge business partnerships, and keep stakeholders in the loop. External business communications include engaging advertisements, customer support interactions, press releases, and business partnerships.

The 7 Cs of Communication

Effective communication goes beyond mere message delivery. It demands clarity, precision, and purpose. The 7 Cs of communications ensure your message reaches its audience and resonates with its quality and completeness.

The 7 Cs of Communication


  1.  Clear: Craft your message with a well-defined purpose. Ditch the jargon and aim for simplicity.
  2.  Concise: Brevity is key. Present your points directly, cutting out fluff and redundancy.
  3.  Concrete: Use specific facts and figures. Solid evidence lends credibility and weight to your words.
  4.  Correct: Ensure accuracy in your facts and language. Mistakes erode trust and muddle meaning.
  5.  Coherent: Maintain a logical flow. Every element of your message should be interconnected.
  6.  Considerate: Address the audience’s perspective. A respectful and empathetic tone goes a  long way.
  7.  Complete: Offer all vital information. Leave no room for ambiguity, answering every potential query.

Business Phone System for Business Communication

A business phone system is a communication infrastructure designed specifically for businesses. It allows organizations to handle incoming and outgoing phone calls efficiently and provides various features to enhance productivity and collaboration within the business environment.


Examples of emerging modern phone systems in business include a cloud-based phone system, aka a VoIP phone system, which you can use to make collaboration and communication in your business easier. Below are listed the services a VoIP service provider typically offers.


  • Voice solutions
  • Email services
  • Video conference
  • Managing communication with your customers
  • CRM systems
  • Document sharing and collaboration tools

Types of Business Communication Channels

Voice and in-person business communication were the only options available until recently. Customers today have come to appreciate and expect brands to communicate with them in various ways. Communication channels are emerging in response to shifting consumer preferences and technological advancements. Below are listed the types of business communication channels.

1. Web-based communication

Web-based communication platforms empower organizational communications. These platforms are used for daily information exchange and instant messaging between employees or with higher authorities. Web-based applications allow private conversations in a crowded office environment while simultaneously sharing a message with many people, from a few to hundreds.

2. Telephone

Telephones are the oldest form of communication, but still, it is an important channel despite the other growing options. The telephone is simple for the voice call option to communicate with customers. Telephones operate using copper wires and are fixed at a certain location.

Businesses mainly used to communicate using only the telephone. But now, the scenario is changing, and companies are changing to a more modern form of communication, such as a cloud phone system. It creates more personalized business communication solution options for phone calls.

3. Video conferencing

Video conferencing has been steadily increasing in popularity, with usage expanding during the Covid pandemic. Without being physically present, video conferencing lets you have a face-to-face, real-time conversation with team members and clients over the Internet. Due to technological advancements, security, and artificial intelligence, video conferencing serves multiple purposes and has become ideal for professional communications. It can be used for internal and external communication and is an excellent resource for keeping remote and hybrid workers connected and informed.

4. Video calls

Video calls have become a popular form of communication, more common than voice calls. They are used for more of an informal way of communication, unlike video conferencing. Employees can easily communicate via video calls to share instant information. Video calls are more suitable for one-to-one communication to reach out to each other instantly.

5. Reports and official documents

Documenting activities that impact other people and departments is a crucial part of an efficient communication system. It helps employers gain an idea about what is going on in the company. It is nonverbal communication, and only the participation of one employee is enough for them to get insight into the operations. The ability to refer to a written document at any moment reduces the chance of confusion or disagreement and provides extra clarity in communication.

6. Presentations

Businesse­s frequently use pre­sentations as a potent communication tool to articulate structure­d information, ideas, and data in an engaging visual manner. The presentation offers a way to effectively convey significant messages, catch the­ attention of audiences, and foster understanding.

Prese­ntations are commonly used within an organization or to pitch ide­as to external parties. Re­ports and PowerPoint slide decks often support them, allowing effective mee­tings with larger groups. They enable the sharing of new ideas in a way that encourages questions and clarifications.

7. Forums and FAQs

Businesses use forums and FAQs to provide valuable information and customer support. Forums allow use­rs to engage in discussions, share experiences, and se­ek advice, while FAQs compile­ common questions that have been asked numerous times for quick refere­nce.

Forums encourage peer-to-peer support and create a sense of community, enhancing customer self-care capabilities. They contribute to a more efficient and satisfactory experience. Likewise, the ce­ntralized knowledge the FAQs provide reduces support re­quests while providing convenie­nt access to essential information.

8. Surveys

Surveys provide a structured and systematic approach to collecting data, opinions, and preferences. Internal Customer Surveys are ideal for gathering feedback and ratings on important topics. Surveys facilitate a healthy cycle of feedback-supported improvements and open a communication channel between all organizational levels. It helps businesses to make informed decisions, identify areas of improvement, and ensure customer satisfaction.

9. Customer Management Activities

Customer management activities include a range of strategies and practices aimed at building and maintaining strong relationships with customers. These activities involve understanding customer needs, delivering personalized experiences, and providing exceptional customer service. 


Businesses can increase customer loyalty, drive repeat business, and foster positive word-of-mouth referrals with the help of effective customer management activities. Examples include live chat support, CRM systems, customer onboarding processes, and customer reviews.

How to Setup a Business Communication System?

Different setup steps are crucial for achieving effective communication outcomes, from defining objectives and selecting appropriate channels to tools. Follow the steps below to set up a business communication system.


1. Evaluate your current state of communication and set Objectives

Every business needs a proper communication plan, whether a startup or a large enterprise, for daily operations. Evaluating the current communication state clarifies the aspect that needs improvements. There can be different reasons your business needs a new communication plan. They include:


• High employee turnover

• Unable to achieve organizational objectives

• Difficult to track communication

• Lack of information transparency


Considering such issues according to your situation, you can set the right objectives for your business. The objectives can include:


• Increase employee satisfaction rate

• Project completion on time

• Customer satisfaction

2. Establish the links between core groups in your company

Every organization is different in its structure and the people involved, which impact their business activities. Take note of every group that requires information to function. In general, the different core groups are classified into:


Horizontal Classification: Departments (operations, marketing, design, human resource, sales, customer support, finance, and more).


Vertical Classification: Professionals (team leaders, department managers, and executives)


External groups: Customers, suppliers, and partners.


Establishing clear links between these core groups ensures efficient information flow across different organizational levels. It helps effective team collaboration and cooperation.

3. Define communication channels

You can choose a communication method that fits perfectly for your business objectives. The different types of communication channels may include:


• Web-based Communication

• Telephone

• Video conferencing

• Video call

• Reports and official documents

• Presentations

• Forums and FAQs

• Surveys

• Customer Management Activities


Among these communication channels, you should choose the one essential for your organization to reach its goals. Being realistic about your specific needs helps you make the correct decision.

4. Select appropriate tools

There’s no such tool that may be best for every purpose. For instance, Gmail versus Outlook and Google Drive versus Dropbox. The conflict continues, but the choice is entirely up to your organization's preference. When selecting appropriate communication tools, you can look for these options:


• Use cloud storage to store important documents and data.

• Use a single platform for emails and calendars.

• Implement an easy-to-use, reliable VoIP phone system like Calilio

• Automatic backup and sync to ensure that your files and data are securely and consistently backed up and synchronized across all your devices.

5. Identify key points and document the process.

Providing an intentionally developed plan to employees helps you document the entire process and ensures effective communication. Based on the outlines, it allows us to consider the situation and take the best course of action. The document assists newly hired employees in understanding the necessary tools and communication practices with ease.


Creating a recurring calendar helps to revisit the document every quarter, and ensure it still serves its purpose. Updating it if necessary helps make the plan effective for you and your team.

The Future of Business Communication

Technological advances are shaping the future of business communication to prioritize seamle­ss collaboration and personalized experiences. Organizations must embrace a culture of continuous learning and innovation to easily adapt and work together, even in an e­ver-changing digital landscape.


Organizations can benefit significantly from enhanced mobility, integrated unified communication platforms, and other advanced features and functionality provided by VoIP phone systems. With these advances, businesses can experience increased flexibility, stre­amlined workflows, and improved customer service while ensuring cost-effective communication solutions.


Additionally, integrating AI in business communications increased scalability, cost savings, improved security, and reliability. As the VoIP phone system continues to de­velop, it plays an e­ssential role in driving efficient and intelligent communication processes. It empowers organizations to adapt quickly to changes within their respective industries while meeting mobile workforce requirements. Customers can also expect exceptional experiences with this system.

Improve your Business Communication with Calilio

Successful communication is vital in today’s interconnecte­d and competitive world. It not only aids in collaboration, productivity, and customer satisfaction but also improves problem-solving and decision-making capabilities. Modern businesses are adopting Cloud Contact Center Solutions to manage their communication needs via VoIP (Voice over Internet Protocol).


VoIP allows organizations to integrate various communication channels - such as voice calls, vide­o conferencing, instant messaging, and file­ transfers - into one platform, simplifying communication and collaboration. Calilio is one of the best VoIP providers worldwide to offer the best VoIP phone service for seamless business communication. You can create a cost-effective Omnichannel Contact Center on our VoIP system and organize your team’s communication. Sign Up now and begin your journey toward smooth business communication.

Frequently Asked Questions

What is communication in an organization?

Communication in an organization involves sharing information, ide­as, and instructions among individuals and groups within the organizational structure. This process is crucial for employee­s, managers, and stakeholders to coordinate­ activities, make decisions together, and establish productive re­lationships.

What are the 4 main types of business communication?

The four main types of business communication are lateral, upward, downward, and external. Lateral, upward, and downward communication are parts of internal business communication.

What are the 7 C's of business communication?

The 7 C’s of business communication include clear, concise, concrete, correctness, coherent, complete, and courteous. Your business communication must adhere to these 7 Cs for effective organizational communication.

What are the 5 methods of communication in business?

The common 5 methods of communication in business include verbal communication, written communication, non-verbal communication, listening, and visual communication. All these methods can be part of internal as well as external communication.

Why is communication important in business?

Communication is important in business for managing business operations and maintaining relationships with stakeholders. Good internal communication helps to direct and inspire the employees to achieve the organizational goal. Correspondingly, good external communication helps to provide a positive customer experience, which in turn helps build brand identity and loyalty.

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