Communication is the Key to A Successful Business

Communication is an essential ingredient in the recipe for a successful business venture. Communication means there is a passage of ideas from the speaker to the listener. These ideas must be clearly and concisely transmitted by the speaker for effective communication. The listener must be receptive to the idea, or open to listening, for there to be an effective flow of ideas.

In communication, the listener is as important as the speaker. However, the speaker should also be a receptive listener, when it is the listener’s turn. In a business environment, there are several communication instances that play a big part in the success of the business.

Communication with target market
To be able to effectively communicate with your target market, it is important to identify them first. Decide whose need your product answers. Keep the geographic location specific. Branching out in a bigger area will spread your business too thinly. Choose the most appropriate age bracket. If you’re offering baby and toddler apparel, target the parents. Research the needs and wants of your chosen market. Then, answer that need. Lastly, be where they are. If your target market is composed of young professionals, focus your marketing strategies on coffee shops, bars, and other places young professionals frequent. If your target market is composed of teenagers, be seen on various social networks. Keep the communication line open. Be receptive of inquiries, comments, suggestions, and reviews.

Communication with employees
The success of the business depends largely on the employees. Happy employees are productive employees and productive employees mean productive and efficient business.

For starters, an open line of communication between the employee and the management, as well as among themselves is an absolute must. This can be a PBX phone system where everyone gets an extension line, or a company-wide instant communication or chat system, or an email address for every employee. Regular conferences and meetings where the employees can provide feedback are also considered as effective communication.

This empowers the employee to communicate his concerns, as well as any matter that can affect the business. In this sense, the speakers are the employees, and the management the listeners. It can be the other way around. In terms of changes in the business, whether negative, positive, or neutral to the employee, it is important to communicate with the employees the causes and the possible effects to the employee.

If the changes will have negative effects, it is important that the communication is sincere and honest so as to retain the loyalty and trust of the employee, as well as allow them to understand the changers. If the changes are positive or neutral, it is likewise important to communicate them clearly and in a timely manner so as not to be misconstrued as negative.

Communication with customers
Reaching the target audience and converting them into clients or customers is not the be-all and end-all of the business. A good business aims to retain its customers. However, retaining customers can be a costly affair.

Dr. Peter Fader, author of Customer Centricity, states that there are three types of customers. The Meh customers have no brand loyalty and will change products at the slightest change of offer. The Great customer is one with fierce loyalty to the product and will take a big incentive to shift. The Good customer is somewhere in between.

The Great customers consist of 10% of the whole customer group, the good customers are composed of the 20%, and the Meh customers make up the 70%. Trying to communicate with all the groups will be very expensive and time consuming. Fader suggests that the business owner should focus his efforts towards the Great customers as they are sure profits, as well as the Good customers, as they have the potential to become Great ones. In this instance, the business owner and leaders are the listeners, and the Great and Good customers are the speakers.