why is good communication vital in business relations?

Answer 1

I have a six year old son who's name is Sam. He could answer this question. However he is in bed so I will.

Basically, you need everyone within the organization to know what is happening within the business. Everyone that the business deals with has to know what you do, what you can do, what your policies are etc.
Your suppliers need to know what you need, when you need it, how much you are willing to pay etc.

This requires good communication.

Answer 2

Let me provide several examples.

You are a small manufacturing company. You will be unable to meet the date you had promised another company for the delivery of a new product. As the business owner, you have two choices. (A) Communicate to the other company immediately that their delivery will be delayed and offer to compensate them in some way. (B) Just keep working on other projects and don't let the company know of any issues until the last minute. Why face the music now, when you can't do anything about it anyway?

Your inability to make the delivery on time doesn't change, but your handling of the situation can greatly affect the long-term outcome. When you communicate upfront, and this communication comes from the business owner, you have hopefully shown your integrity, honesty and concern for the customer. You stand a better chance of preserving that relationship.

Let's build on this example, with another one. You and your sales team don't communicate the situation to your receptionist. In addition, the receptionist has no training on the basics of this "new product." When the owner of the company calls in, he has a simple question about the new product. Your receptionist tells him she "doesn't know" and that "nobody is available" to answer his question. She pulls up his order on the computer and there are no notes showing he did not receive delivery on time. She then proceeds to ask him if he received the shipment. Ouch!

You can see how breakdown in communication within a company can happen at many levels. It is vital that communication flow within an organization, from the top to the customer contact points, in order to provide the level of service that will maintain your business relationships.

Answer 3

Good communication is vital in any interaction between two or more human beings if the goal is towards satisfaction for both or all parties.