Business Management: Marketing and Communication

by on 4. Februar 2010

The way we communicate with others is such a habitual part of us that we rarely stop and think about it. This translates into business communication too. Organizations, after all, aren’t faceless entities, but groups of real people.

Effective communication affects processes, efficiency, and every layer of a company.

Organizations with connected employees have a spike in productivity of up to 25%.

How would a 25% productivity lift impact your company’s success? Would you see a revenue increase?

Better customer service and hence, happier customers? Higher profits?

All of the above (and more)?

In this guide, we’ll cover all you need to know to set up a successful business communication process.

  • What is Business Communication? The Definition
  • Types of Business Communication
  • Methods of Business Communication
  • Problems That Effective Business Communication Can Solve
  • How to Set Up Your Business Communication Process

What is Business Communication? The Definition

Business communication is the process of sharing information between people within and outside a company.

Effective business communication is how employees and management interact to reach organizational goals. Its purpose is to improve organizational practices and reduce errors.

The importance of business communication also lies in:

  • Presenting options/new business ideas
  • Making plans and proposals (business writing)
  • Executing decisions
  • Reaching agreements
  • Sending and fulfilling orders
  • Successful selling
  • Effective meetings

Related: State of Business Communication Report Reveals Shocking New Trends in 2020

All organized activity in a company relies on the process of business communication. This could be anything from managerial communication to technical communication with vendors.

And once communication becomes unclear, the company’s core systems risk falling apart. Data shows that 60% of internal communications professionals do not measure internal communications. Potential reasons include not knowing where to start, the next steps, or how to calculate ROI.

If you feel the same, consider this:

Strong business communications in a company will likely result in higher employee engagement.

Companies with an engaged workforce see a 19.2% growth in operating income over a 12-month period. Those with low engagement scores earn 32.7% less.

How much more successful would you be if you had better employee engagement?

And how can you ensure a business communication process that will make it possible?

Check out the Business Communication Report
1,000+ professionals share actionable insights.
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Types of Business Communication

Let’s first differentiate the main types of communication in a typical organization.

First, we have internal business communication.

Internal business communication can be:

  • Upward communication: any communication that comes from a subordinate to a manager. Or from another person up the organizational hierarchy.
  • Downward communication/Managerial communication: anything that comes from a superior to a subordinate.
  • Lateral communication/Technical communication: internal or cross-departmental communication between coworkers

To combat this, 70% of companies are committed to increasing their lead generation budget to expose their brand and products to new sources of traffic. One method growing in popularity for lead generation is affiliate marketing.

What is affiliate marketing

Affiliate marketing involves a publisher (affiliate) signing up to an affiliate program offered by a retailer (advertiser) to promote and sell their products on a commission-based payment model. The publisher promotes the products or services using a unique link, which sends traffic to the company’s website. If the lead purchases the product, the publisher is paid a percentage of the sale. From a business perspective, it can be thought of as a way of expanding the marketing team by hiring people through third-party companies who are paid only following successful sales are made. Try out the best automated affiliate software.

Growing in popularity

In a world where businesses are being bombarded from all directions with different marketing channels and strategies, it may feel overwhelming to try and embrace a new advertising method. Yet, there are many reasons why affiliate marketing is a popular method for brands to grow.

Hand pick your partners

As a retailer, you can pick who you choose to work with. Affiliates apply to come onboard your affiliate program, providing you with the opportunity to assess their suitability and hand pick those who can be the best ambassadors for your brand and products.

Targeted traffic

All traffic is not created equal. If you sell spa products, for example, you don’t want to waste your advertising budget attracting people who are looking for car products. By working with affiliates who understand your industry and are already active in it, you will receive targeted sales from a warmed up audience. This makes it easier to maintain the relationship with your new customer going forward.

Pay for performance and sales

With traditional pay-per-click advertising, you are charged per click or lead sent your way. These leads then need to be converted into a paying customer, and there is no guarantee at this stage that will happen. In its simplest form, with affiliate marketing you only pay out when a sale is made, while also offering flexibility to pay publishers for influencing sales. If the affiliate marketing partner has an ineffective campaign, it won’t affect your budget. Whereas a poor PPC campaign that sends you low quality leads will still need to be paid for, even if you make no sales. This ensures your marketing is cost effective.

Then, there is external business communication.

External business communication is any messaging that leaves your office and internal staff. It involves dealing with customers, vendors, or anything that impacts your brand.

You can sort all communication in this spectrum into four types of business communication.

  1. Getting and receiving instructions and assignments both upward and downward. This includes an effective delegation from one person to another. Most problems in business begin with unclear communications in this area.
  2. Sharing and discussing information, including information sharing that goes on in meetings. When communication fails in this area, it causes tasks to be done improperly or not at all.
  3. Giving feedback, correction, and discipline to people who report to you so that they can have the knowledge and the tools that they need to do their jobs better. Giving great, actionable feedback is a key skill for anyone in a leadership position. Non-verbal communication and body language also play a role here.
  4. Problem-solving and decision-making meetings and discussions. These are considered among the most important discussions for any organization. This involves higher critical thinking and better communication technology.

Methods of Business Communication

When business communication actually happens, it’s either verbal or written.

Furthermore, communication takes place either in person/face-to-face or remotely.

Neither of these are better or worse for your company on their own and entirely depends on the context.

Written communication is great for keeping a paper trail of decisions and actions made as well as for putting together strategies and plans in place. Verbal interactions enable instantaneous idea generation and a more open flow of thoughts.

Some companies are in a single office. Some have offices in various time zones. Others are fully remote and don’t have a physical location (Buffer and Zapier are great examples of location-independent companies). These are the methods of business communication applicable to some or all of the above scenarios:

1) Web-based communication

This includes everyday communication channels like emails and instant messaging applications (such as Slack, Hangouts, or even Nextiva Chat).

The benefits of emails and messages lie in the ability to lead private conversations in a busy office environment, as well as sharing a message with many people—from a few to hundreds—all at once.

2) Telephone meetings

Phones removed the location barrier to running productive, fast-moving meetings. It allows for better idea exchange thanks to the non-verbal communication (tone of voice) compared to written communication. Cloud phone systems can accelerate onboarding and overall team collaboration.

3) Video conferencing

Great video conferencing systems enable people at remote locations to run meetings that feel as close to in-person meetings as possible. They take phone meetings one step up.

4) Face-to-face meetings

In-person meetings can help a business move forward with ideas quickly. Research shows that in-person meetings generate more ideas than virtual meetings.

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