Why Communication is Important to Managing a Business

Communication is KEY when it comes to managing a business. The personal within the business need to understand processes, procedures and policies (PPP).

Employees ranging from directors, officers, managers, shareholders and various other stakeholders need to have a strong communication network if the business is to run efficiently, especially if they want to see a return on investment (ROI), increase in productivity, profits and of course happy customers!

Communication between all employees, stakeholders and of course it’s customer is a business essential! Added to this, communication regarding alterations in a process or product offering toward the specific customer(s) is paramount. For example, a few years ago I went to small supermarket that has a small bakery, my grandfather and I would get bread rolls for a church function at a reduced rate.

One day we go to get the bread rolls, I was sent in as per usual to collect and pay. When I went to go pay I noticed that we had been overcharged, however there was new staff and I assumed they had told the new staff about the reduced rate.

Anyway we ended up paying a bit more and I went to go check with my grandfather if anything had been changed and he said, “No.” We went back in to clear it up, thankfully one of the owners was present, we eventually ended up paying the right amount in the end and gave us back the extra money that was spent. So the reason for this communication breakdown was the owners failed to inform the staff of a specific process.

At the time I was about 18/19, even back then I knew business communication is a necessity, especially if you want to provide a good service or product. There was a mishap with an order, the service was incorrect, it caused confusion with the staff and frustration as a customer.

Businesses can reduce frustration, confusion and inefficient processes with all stakeholders by establishing and ensuring a strong communication style and network is utilsed in all operations.

Product-Service Communication:

When communicating effectively, the business also needs to understand the product and/or service they offer to their customer. Businesses should analyse a product or service offering, and by understanding FAB:

• Features

• Attributes

• Benefits

Features:

Businesses must know the features of the product(s) and/or service(s) they offer like the back of their hand. Such as what makes the product or service unique, what makes it stand out of the crowd. Product or service features will help to differentiate them from their competition, differentiation will help secure a place in the market. This will ensure delivery on value to customers seeking a product that has the right features that have the capabilities to satisfy the customers need and wants.

Attributes:

These help to describe whether or not the product(s) and/or service(s) are tangible or intangible, are subjective or objective. Now with regards to services most are intangible or on become “tangible” when a service is being carried out or has been completed to produce the “product.” Attributes will help to assist the consumer if it will be a suitable option when comparing other options.

Businesses of course need to ensure the explanation of each attribute is concise, clear and easy to understand. This would of course help the consumer make the choice more easily. Effective communication of attributes will emphasis the product and why the consumer will need it – as stated previously the business will need to understand their offerings with a deep connection.

Benefits:

Businesses need to communicate the benefits of their product in order to attract and draw customers in, again they need to differentiate from the competition if they want to ensure they stay ahead of the competition.

Moreover, communicating the benefits to consumers will assist consumers to identify whether or not their need or want will be satisfied sufficiently enough. If the benefits outweigh any drawback, consumers will be willing to compromise and ultimately still satisfy their need or want.

Communication Channels:

Firstly, although still relevant a shift from traditional communication channels such as signs, posters, direct mail, referrals and billboards has been on the rise.

In today’s connected internet age there are numerous communication channels through various virtual and digitalplatforms that businesses could use to their advantage. This includes social media platforms (Instagram), video platforms (YouTube), blogging platforms (Blogger), web platforms (WordPress).

Secondly, if businesses are to survive the emergent age of rapid technological evolution, they will have to innovate and utilise the above said virtual channels if they have not yet done so.

Most business either have an outdated virtual channel that is in dire need of update or they lack one completely. Start-up businesses in today’s market could use this as an advantage of growth if they are willing and wanting to “get out there”. Lastly, communications channels for the future will be short.

Such as the use of YouTube shorts which are becoming more and more popular, this is due to the reduced attention span of us homo-sapiens. People don’t want to spend 5, 10, or 20 minutes reading or watching a video they want something, short and sweet, but effective at the same time. Communication is slowing shifting into that sphere and it will only grow more and more in the near and far future.

Overcoming Communication Barriers:

There are copious communication barriers that may arise internally within the business as well as externally, affecting the business. One such example would be a language barrier. Businesses need to put the necessary people and processes in place to address said language barrier – by doing so businesses will be viewed as more inclusive.

Another example would be the broken-telephone. So say an executive officer told a director about an issue they have noticed within the company. That director has been told to let the other employees lower down the tier to sort out the issue and the director tells the manager and the manager tells the relevant employees. Now during that whole communication process a few details are left out here and there… Of course the issues will still remain and the executive officer finds out a week late that the issue still has not been resolved.

Again, emphasises the need for a strong, well established and interconnected communication network within the organisation, between ALL members of the organisation in order to overcome and prevent the broken-telephone.

Extra Reading Links:

https://courses.lumenlearning.com/boundless-business/chapter/introduction-to-business-communications/

https://www.aha.io/roadmapping/guide/requirements-management/what-are-product-features#:~:text=Product%20features%20are%20discrete%20areas,)%20design%2C%20and%20performance%20upgrades.

Definitions of Marketing

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/12287-product-benefits.html

Communication is KEY when it comes to managing a business. The personal within the business need to understand processes, procedures and policies (PPP). Employees ranging from directors, officers, managers, shareholders and various other stakeholders need to have a strong communication network if the business is to run efficiently, especially if they want to see a…

Communication is KEY when it comes to managing a business. The personal within the business need to understand processes, procedures and policies (PPP). Employees ranging from directors, officers, managers, shareholders and various other stakeholders need to have a strong communication network if the business is to run efficiently, especially if they want to see a…