With the fast pace of business today, it’s easy to overlook the large part of our work life that is consumed by communication. Whether we’re drafting emails and documents, taking meetings by phone, Zoom, and in person, or managing a constant stream of Slack notifications, we’re all moving business forward through communication. 

But business communication can take many forms. There is no one “right” way to communicate within an organization—but there are consequences for getting it wrong. Poor communication can negatively impact your brand’s reputation, employee engagement, and the bottom line. In fact, businesses in the US may lose as much as $1.2 trillion per year due to communication breakdowns. 

That’s why it’s important to understand the different forms of communication in your briefcase (so to speak). In this blog, we’re breaking down the 14 types of business communication and laying out the pros and cons of each so you can determine which strategies are best to get your message across. But first, let’s start with a fundamental question: What is business communication?

The TL;DR (Generated by Grammarly’s AI)

• Business communication is the exchange of information and ideas within an organization, as well as with customers, partners, and other external stakeholders.
• Effective business communication is also a strategic imperative to fuel success in today’s competitive landscape. It leads to enhanced employee productivity, heightened customer and employee satisfaction, new business deals, and significant cost savings. But when you get it wrong, it can take a toll on your bottom line, your brand, and your employees’ and customers’ satisfaction. 
• There are 14 main types of business communication, and knowing when to use each type is crucial for successful communication. Whether it’s the chit-chat between team members (internal communication), the updates from the top (downward communication), or even just face-to-face messages, each type has its moment to shine and pitfalls to avoid.
• Choosing the right types of business communication for your message involves considering your audience, what information you’re sharing, where you’re sharing it, and your desired outcome. It’s like choosing the right outfit for the occasion—some situations call for formal attire, while others are more casual.
• The rise of generative AI promises to make our communication even more productive and creative, but the key to success is still choosing the right communication style for the message and the moment.

What Is Business Communication?

Business communication is the exchange of information and ideas within an organization, as well as with customers, partners, and other external stakeholders. Without good communication, your company cannot function. According to the 2024 State of Business Communication report, knowledge workers spend a staggering 88% of their workweek on communication alone. Today’s workplace has become so saturated with communication that staying connected is not just a norm but a necessity. 

Good business communication is also a strategic imperative to fuel success in today’s competitive landscape. Effective business communication can lead to enhanced productivity, heightened customer and employee satisfaction, new business deals, and significant cost savings. On the other hand, as we mentioned above, poor corporate communication can negatively impact your brand’s reputation, employee engagement, and the bottom line.

The rise in popularity of generative AI (gen AI) has added a new element to the mix. It has the potential to transform business communication, unlocking new levels of employee productivity, creativity, quality, and automation. It also accelerates the already high pace and volume of communication we see at work today, an increase that could multiply the costs of poor communication.

Understanding the Main Types of Business Communication

As we mentioned before, there is no single “right” way to communicate. Because each type of business communication accomplishes a unique set of goals, most businesses use multiple communication skills and strategies within their organization. Choosing the right types of business communication for your message involves considering your audience, what information you’re sharing, the communication channel where you’re sharing it, and your desired outcome.

To help you understand the different types of business communication, let’s define them and break down when to use each one—and what to look out for when you do.

1. Internal Business Communication

• What it is: Interactions between team members,
including leadership
• When to use it: To share information, memos, and updates that foster teamwork and culture
• What to look out for: Can be easily oversaturated, leading to information overload
• Tips for effective internal communication: Carefully select the channel(s) to convey your message to ensure that information reaches all relevant stakeholders in a timely manner
• Learn more: What Is Internal Business Communication, and Why Does It Matter?

2. External Business Communication

• What it is: Interactions between employees and customers, clients, and the public
• When to use it: To share messages that create a positive public brand and reputation
• What to look out for: Miscommunication can have a lasting negative impact on a company’s success, reputation, and consumer trust
• Tips for effective external communication: Tailor your message to a specific audience to build credibility and trust
• Learn more: 4 Customer Communication Skills Your Team Should Have

3. Upward Business Communication

• What it is: When direct reports reach out to managers or when managers reach out to top-level executives
• When to use it: For leadership to keep a finger on the pulse of what’s happening on the ground floor
• What to look out for: Can only be successful if there is trust and openness
• Tips for effective upward communication: Be concise and provide the necessary context for your audience

4. Downward Business Communication

• What it is: When executives reach out to managers or when managers connect with direct reports
• When to use it: To quickly disseminate necessary information, tasks, and feedback
• What to look out for: Can be a slow process, especially when information must flow through multiple levels of hierarchy
• Tips for effective downward communication: Clearly outline your expectations and provide actionable steps to achieve them

5. Lateral Business Communication

• What it is: When team members or leaders of equal standing interact
• When to use it: For collaboration, information sharing, problem-solving, and coordinating tasks between team members 
• What to look out for: The more casual, informal nature may lead to issues with authority, tone, or accountability
• Tips for effective lateral communication: Encourage an open dialogue by actively listening to others’ perspectives and collaborating on solutions to break down silos

6. One-to-One Business Communication

• What it is: Interactions between two individuals
• When to use it: For personalized interactions like giving feedback in performance reviews 
• What to look out for: Requires a tailored approach to address individual concerns and foster trust
• Tips for effective one-to-one communication: Practice active listening and empathy to understand the other person’s perspective and build rapport, no matter if face-to-face or remote

7. One-to-Many Business Communication

• What it is: Communication from one sender to multiple recipients
• When to use it: When disseminating information to a large audience, such as company-wide announcements or marketing campaigns
• What to look out for: Presents a potential for information overload and therefore requires clear, concise messaging to ensure engagement
• Tips for effective one-to-many communication: Incorporate storytelling to engage your audience, using anecdotes, case studies, or real-life examples to bring your message to life

8. Written Communication

• What it is: Communication conveyed through text, such as emails, blogs, ebooks, reports, proposals, and presentations
• When to use it: For asynchronous communication, record-keeping, and knowledge-sharing
• What to look out for: Requires careful attention to clarity, tone, and grammar to ensure effectiveness
• Tips for effective written communication: Use formatting techniques such as bullet points and headings to make your message easy to read and comprehend
• Learn more: A Quick Guide to Effective Business Writing

9. Verbal Communication

• What it is: Communication conveyed through words spoken, including face-to-face conversations, meetings, videoconferencing, and phone calls
• When to use it: To give feedback, provide clarification, or discuss sensitive or personal topics
• What to look out for: Can be prone to misunderstanding without clear articulation, active listening, and attention to nonverbal cues; not preferred by everyone, including neurodivergent persons
• Tips for effective verbal communication: Speak clearly and confidently, and notice body language and other nonverbal communication cues to ensure the effective delivery of your message
• Learn more: How to Upgrade Your Business Communication Skills

10. Visual Communication

• What it is: Communication conveyed through images, including sign language, presentations, charts, videos, and illustrations
• When to use it: To convey complex information quickly and effectively, allowing people to grasp complex concepts more easily
• What to look out for: Has the potential for misinterpretation or ambiguity
• Tips for effective visual communication: Choose visuals that enhance understanding and convey information succinctly, avoiding clutter and unnecessary detail

11. Formal Business Communication

• What it is: Communication conveyed through official channels established by the organization, such as company policies, procedures, official announcements, press releases, and reports
• When to use it: When you want to ensure consistency, clarity, and adherence to organizational standards
• What to look out for: Can create barriers to effective interactions and collaboration within the organization
• Tips for effective formal communication: Follow your organization’s preferences on formality and consider your audience to determine which level you should employ
• Learn more: Understanding the Different Business Writing Styles

12. Informal Business Communication

• What it is: Casual and unofficial interactions among employees, such as Slacks and in-office or casual Zoom conversations
• When to use it: When building relationships, promoting camaraderie, and sharing ideas
• What to look out for: Can lead to the spread of inaccurate information if not managed effectively
• Tips for effective informal communication: Maintain a respectful tone while being open and approachable to encourage conversation and collaboration
• Learn more: Formal vs. Informal Writing: A Complete Guide

13. Synchronous Business Communication

• What it is: Communication that happens in real time, allowing for immediate responses
• When to use it: For real-time collaboration, such as in person, in virtual meetings, or on phone calls
• What to look out for: Requires active listening and participation to be effective
• Tips for effective synchronous communication: Practice active listening during real-time interactions, paying careful attention to tone
• Learn more: Choosing the Right Communication Channel for Every Task

14. Asynchronous Business Communication

• What it is: Communication that does not require real-time interaction, allowing for flexibility in response times
• When to use it: For flexible communication where immediate response isn’t required, like email or project management tools
• What to look out for: Could cause delays in decision-making and requires clear documentation to ensure continuity
• Tips for effective asynchronous communication: Clearly outline when you expect others to respond to ensure a timely follow-up and avoid misunderstandings
• Learn more: What Is Asynchronous Communication?

Now that you know the proper terminology and use cases for each type of business communication, you’re better able to create an enterprise communication strategy. This should consist of the right team communication tools, proper training for employees to uplevel their communication skills, and formalized communication processes so everyone within your organization is on the same page.

Ensuring Business Communication Success With Grammarly

Effective business communication is how you will win in the age of AI, and Grammarly gives your business a competitive edge. Grammarly is your AI-powered communication assistant that both coaches and improves your team’s business communication. Beyond grammar, spelling, and punctuation, Grammarly delivers real-time suggestions within your workflows for improving clarity, tone, and engagement with every message, so your team can nail the right type of business communication every time.

Contact us to learn more about how your company can up-level your business communication with Grammarly.