What are the benefits of effective communication in business?

Updated April 17, 2017

The foundation of a good business team is regular and complete communication. Without it, confusion could arise, which leads to conflict and poor results. A team that is open and honest, as well as able to communicate information and suggestions, stands an excellent chance of succeeding and achieving their objectives.


Poor communication within a team can lead to low productivity as confusion renders team members unable to carry out certain functions. Effective communication removes this confusion and allows the team to focus on an objective, meaning that goals are met with results that are complete and correct.

Customer Satisfaction

The U.S. Office of Personnel Management notes that effective communication is a vitally important component in the achievement of high customer satisfaction. Customer happiness is a high priority on the list of many companies. Being able to communicate effectively with a customer, informing them of the benefits of your product or service as well as any issues you are experiencing, will result in a customer who feels respected and valued.


A team that communicates openly and honestly with one another, and that is prepared to listen to suggestions from members without dismissing them immediately, is an excellent environment for generating respect between colleagues. Each team member will value the input, skills and contribution of his or her co-worker, and this appreciation and trust will produce an efficient team.

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About the Author

Ben Wakeling graduated from Coventry University in 2009 with an upper second class honours B.Sc. degree in construction management. Wakeling is also a freelance writer, and works for a number of businesses, such as Demand Studios, Suite 101 and Academic Knowledge.