VoIP Solution

Why are Effective Business Communication Systems so Important?

Good business communication systems are vital for a healthy business. Effective business communication systems can increase productivity, and boost sales.

In a world where consumers expect instant service and products to be delivered quickly, if not quicker, an effective business communication system is a necessity to keep up with the fast paced demand of your customers. Communication systems are used to maintain relationships, increase productivity, and of course, increase sales.

Communication is a vital part of any healthy business, but having the wrong system, or no system at all, can lead to significant issues. In fact, many businesses fail because they do not have adequate communication systems in place and/or they lack the ability to communicate effectively with employees and customers. The results often lead to missed opportunities, loss of potential customers, and internal chaos.

An effective communication system allows businesses to provide better customer service and create more client referrals, leading to additional revenue.

Bottom line - A sound business communication system is an organization's lifeblood, and without it, businesses cannot survive, let alone thrive. A successful business must have methods in place to facilitate strong communication between all those involved.

With this in mind, below we’re sharing more reasons your company needs to look into how to improve communication in a business. What we’ll cover can potentially help you save a struggling business, or take one that is already doing well to the next level of success.

1. Convert Prospects Into Customers

Perhaps one of the biggest ways to lose potential and previous customers is by having long hold times or directing them to the wrong department. This problem can be mitigated with effective communication systems that can route customers to the right place and hand callers off to available representatives that can quickly handle their needs.


Communication is even more critical when you have a customer that has a complaint or an issue that needs to be solved. If they’re already unhappy and you can’t address their needs quickly you risk not only losing the customer, but having them go online to complain about your lack of customer service. Once that bad word of mouth takes hold, things can escalate and could lead to additional losses not only of your online reputation but of other potential customers.

Every interaction whether it be with a prospect or a previous customer is an opportunity to turn that person into a loyal brand advocate or into a person that goes on a social media fueled rant. We know you want the former, so avoid the latter by routing calls efficiently!


2. Land Additional Projects With Clients

Organizations that want to grow and develop must have effective communication systems - not just with customers, but with your internal team as well. Growth requires getting ideas from many different people, and that’s why having a way to communicate with everyone related to your organization is so important.

This can help you extract additional business from current customers as well. You might be wondering how, and the answer is that your team may have ideas for products and services that they can bring to market quickly. With a VoIP phone system in place, team members and vendors can work together across time zones to share their ideas and give each other feedback without even needing to come into an office. They can take their office with them wherever they go! Then, once ideas are brought to market, you can go back to current customers and ask for additional sales.

Even if you don’t have new ideas to bring to market, your communication system can result in additional sales. Calling to check in on how they are doing with their current or most recent order is a great opportunity to ask if they need anything else. Having your best customer service representatives following up can lead to additional purchases, or even just warm fuzzy feelings that help with word of mouth. Finding ways to extract additional business from current customers is necessary for companies that want to grow and communicating is a critical component for achieving more business.

3. Don't Miss Opportunities

Communication systems allow businesses to capitalize on new opportunities or acts of customer loyalty. A business with an ineffective communication system misses out on many opportunities, including new customers and the chance to make long-lasting impressions on existing clients. A company that does not manage its communication systems well will have more difficulty finding new growth opportunities.

Choosing the right business phone system can make all the difference in improving your business communication. Keep in mind that when purchasing a phone system, you essentially buy the experience your team and customers will have when communicating with you. Use this information to help you choose the right system for your business needs.

What does taking advantage of an opportunity look like in practice though?


Let’s say for example Annie in shipping has an idea that can remove bottlenecks in packaging orders and get them ready to ship out faster. She tries to call Lloyd in operations, but can’t reach him because he’s out of the country. He’ll be back in two weeks, but that means Annie will have to send an email that Lloyd may or may not be able to respond to quickly. Now, Annie’s brilliant idea is sitting waiting to be considered and for every day that her idea is not being implemented, your company is missing out on the potential to expedite orders more quickly.

Imagine what could have happened instead if Annie called Lloyd via the company’s VoIP phone system and he was able to answer even though he was in another country because he was able to connect to WiFi. He heard Annie’s idea instantly, and implemented it that day. Now your company’s shipping time has gone from 2-days to 1-day to get orders out the door. Your customers are happier, and feel more confident ordering more because they know they won’t have to wait as long for delivery. That’s the power of an effective communication system!

4. Don't Get Overbooked

Often, businesses will say they wish they had the problem of being overbooked because it means they are doing well. But there is a downside to overbooking. It often involves not attending to customers promptly because the organization's communication systems cannot accommodate this increase in business.

Overbooked businesses can lose potential customers when they are forced to turn them away due to too many appointments or urgent priorities. When a company overbooks itself, they often have to cancel appointments with long-time customers, severely impacting customer loyalty.

Overbooking leads to inefficient communication systems. This is because employees are forced to work faster, or multiple employees follow the same task list, clogging the system for those who need more attention. Ineffective communication systems can take away from a business's ability to meet the demands of its customer base.

5. Increase Customer Satisfaction

Businesses with effective communication systems will produce a better product and provide exceptional service to customers. Customers notice when a company is prepared with an efficient way to help them, increasing loyalty. When they see businesses looking out for them, they become more likely to turn to this company in the future.


More satisfied customers can lead to increased referrals, which means more business for the company. This allows businesses to expand and grow to handle more customers with ease.

Efficient communication systems affect internal and external communication between an organization and its partners or customers as well. When organizations are better prepared to handle their own internal and external processes, they in turn can provide better service to their customers.

6. Increase Employee Productivity

Having the best employees is not enough if the proper tools are not available to help them succeed. Employees already have a lot on their plate with daily responsibilities, and communicating is another chore they need to handle. A method to enhance employee performance is to use sales incentives, encouraging employees to surpass their previous achievements.

Your communication system should allow employees and customers to interact with ease, increasing the efficiency of your company overall. Employees can only be as productive as the company enables them to be by giving them the tools to help their efficiency.

7. Decrease Telecommunication Costs

Having the best communication system doesn't mean paying the most for it. When searching for a VoIP system for your business, don't get pressured into spending more because a company offers shiny features that are not practical. Businesses should find a phone system that fits their needs without overpaying for features they will never use.

That’s where Ring4 comes in. With us, businesses can stay connected with their customers, and employees can communicate more efficiently. Ring4 offers a variety of features that make communication systems affordable to all companies, no matter the size or budget.

Final Thoughts

Effective communication systems allow employees to work more efficiently, increase productivity, strengthen customer relations, and create additional opportunities.

Choosing the right system is not only vital to maintaining your current business but for future growth as well. With Ring4, businesses have access to the tools they need to grow. Try out Ring4 for yourself and see how it can benefit your business. Sign up today!

The Ultimate Small Business Communication Guide 2.0

About the author

Similar posts

Get new insights on business phone systems

Be the first to know about new advancements and insights on cloud business phone systems to optimize the operations of your remote or hybrid workforce.