Effects of poor business communication

Poor communication with customers can cost you revenue.Poor communication with customers can cost you revenue.

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Customer satisfaction is essential to maintaining ongoing revenue and developing successful products. When a company has poor customer communication methods, the company is missing out on consumer feedback. The better a business owner understands the importance of effective customer communication, the more likely he'll want to repair any of the company's poor customer communication policies or practices.

Customer Life Cycle

There are several stages to the customer life cycle. Those stages include initial purchase, customer retention, and ongoing marketing to existing clients. To maximize profitability, you put proactive customer communication policies in place that follow up after an initial purchase to insure customer satisfaction, and to maintain contact with clients. Poor customer communication won't sustain the customer life cycle and your company will miss out on repeat business.


Customers who call in to your company should receive prompt and courteous service. An example of poor customer communication is a system that transfers phone calls to multiple destinations before putting the correct person on the line, or an automated call answering system that doesn't allow the customer to speak with a person. If a customer cannot get quality service, then she'll buy her products elsewhere.

Related Reading: Importance of Communication in the Business World

Product Development

Your customers provide the source of your revenue. If you don't reach out to ask your clients' opinions on your products, then it's difficult to tell which product improvements or upgrades are necessary to increase sales. Poor communication doesn't allow for customer input that can become critical market research when you're developing new products or considering upgrades to existing items.

Customer Confusion

Poor customer communication can show up in marketing pieces as well as from your sales force. For example, if you own a magazine that offers trial subscriptions, you may forget to mention that a credit card is required for clients to receive the free offer. While this is a function of bad proofreading and poor marketing follow-up, it's also a good example of how poor customer communication can cause confusion among potential clients and damage your ability to secure new business.

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