What is External Business Communication?

What is External Business Communication?

External business communication refers to any communication that takes place between an organization and external parties outside of the company. This includes communication with customers, vendors, partners, investors, media, government agencies, and the general public.

Effective external communication is crucial for any business as it helps build brand awareness, manage reputation, promote products and services, strengthen customer relationships, and drive sales. Unlike internal communications within a company, external communications require more strategy, planning and finesse to ensure the intended message is conveyed positively.

Some examples of common external business communications include:

• Marketing communications - Advertising, social media, email campaigns, promotional events etc. aimed at customers and prospects.
• Public relations - Press releases, media relations, analyst relations, conference participation etc.
• Customer service - Responding to customer queries, complaints and feedback across channels like phone, email, chat.
• Sales - Communication during the sales process via emails, calls, presentations and relationship building.
• Investor relations - Communications with shareholders, potential investors, financial analysts and business media.
• Community outreach - Philanthropy, volunteering, environmental initiatives, local partnerships.
• Recruiting - Employer branding, job postings, campus recruiting aimed at attracting talent.
• Regulatory communications - Interactions with regulatory bodies, licensing, compliance reporting.

The goal of effective external business communication is to build lasting relationships that foster trust, demonstrate expertise, convey credibility and ultimately create business value.

Types of External Communication

External business communication can take many forms depending on the audience and goals. Here are some of the most common types:

Sales and Marketing Communications

This refers to the external messages used to promote products, services, and the overall brand. It includes advertising, public relations, direct marketing, packaging, and more. The goal is to attract new customers and generate leads and sales.

Public Relations

PR focuses on managing the public image of a company and building beneficial relationships with stakeholders like media, investors, partners, and consumers. PR teams communicate through press releases, media interviews, event planning, sponsorships, and other efforts.

Investor Relations

Companies need strong communication with shareholders, creditors, and financial analysts. Investor relations involves providing information on financial performance, business strategy, leadership changes, and other details relevant to investors through reports, presentations, and events.

Customer Service

This external communication happens through support centers, social media, FAQs, user manuals, and other channels. The focus is solving problems, answering questions, and improving customer satisfaction. Effective customer service communication builds loyalty.

External communication takes many forms depending on the target audience. Strategic external messaging helps attract customers, investors, media attention, and other benefits for business success.

Internal vs. External Communication

Internal communication refers to the exchange of information within an organization, while external communication represents the sharing of information outside company boundaries. Though different in nature, internal and external communications are closely interlinked and support each other.

Some key differences between internal and external communication:

• Audience - Internal communications target employees while external communications are directed at outside stakeholders like customers, investors, media etc.
• Objective - The goal of internal communications is to inform, engage and motivate employees. External communication aims to build brand image, generate leads and sales, and manage public perception.
• Message - Internal communications focus on company news, policies, events and culture. External communications highlight product benefits, thought leadership, CSR efforts etc.
• Channel - Popular internal channels are email, intranet, chat tools, and townhalls. External communications leverage media, websites, social media, conferences etc.
• Frequency - Internal communications are continuous, happening daily or weekly. External outreach occurs periodically based on campaign launches, events, news.
• Legal obligations - Companies are legally required to communicate certain information to shareholders and regulators. No such obligations exist for internal communications.

While their focus differs, internal and external communication are closely linked. Effective external communication rests on informed and engaged employees. And internal culture reflects how a company presents itself externally. By aligning internal and external messaging, companies can craft an authentic and consistent brand narrative.

External Communication in the Digital Era

The rise of digital technologies over the past few decades has dramatically changed external business communication. Whereas businesses previously relied on traditional methods like print advertising, direct mail, and PR, today's external communication strategies leverage the power and reach of the internet.

Some of the major digital channels used for external business communication include:

• Social media - Platforms like Facebook, Twitter, Instagram, LinkedIn, and YouTube allow businesses to directly engage external audiences, build brand awareness, handle customer service issues, and promote products and services. Social media provides two-way communication between businesses and stakeholders.
• Email marketing - Email newsletters, promotions, surveys, and other email campaigns targeted at customers, prospects, partners, and other external groups are an extremely popular digital external communication method. Email marketing enables personalized, measurable, and cost-effective communication.
• Websites - A company's website is its digital face to the outside world and one of the most fundamental external communication tools. Websites can inform and persuade visitors through written content, videos, images, and more. Websites also facilitate lead generation, sales, and customer support.
• Blogs - Company blogs that provide news, expertise, behind-the-scenes insights, and other valuable content are an excellent way for businesses to attract visitors, build trust and credibility, and foster engagement with external audiences.
• Online PR - Digital press releases, contributor articles on industry websites, and online media relations help businesses communicate key messages to external stakeholders through third-party websites and publications. This can increase awareness and influence audience perceptions.

The digital transformation has enabled instant, interactive, data-driven, and cost-efficient external business communication. While traditional methods still have value, embracing digital channels is essential for modern external communication strategies.

Social Media for External Communications

Social media platforms have become essential tools for external business communication. Popular social networks like Facebook, Twitter, LinkedIn, Instagram and YouTube allow companies to directly engage target audiences and build relationships.

Facebook is the largest social network, with over 2 billion active monthly users. Businesses use Facebook Pages to share content, run ads, host events and interact with customers and fans. Facebook Groups can be used for community building.

Twitter is ideal for real-time communication, sharing news and updates, and monitoring brand mentions. Businesses can tweet, retweet, host Twitter chats and build audiences through hashtags. Twitter is great for customer service, PR and driving website traffic.

LinkedIn is the world's largest professional network with over 500 million members. Company Pages share industry news, job openings and content. Individual employee profiles establish thought leadership. LinkedIn Groups facilitate discussions. The platform is used for lead generation, recruitment and B2B marketing.

Instagram is a visual platform with over 1 billion monthly active users. Businesses use Instagram to share high-quality photos and short videos that showcase products, behind-the-scenes content and user generated content. Instagram Stories and IGTV provide engaging video content options.

YouTube has over 2 billion monthly logged-in users. It is essential for video marketing. Businesses can create branded channels, share commercials, host webinars, and publish help videos, testimonials and behind-the-scenes footage. YouTube builds brand awareness and trust.

Social media allows for two-way external communication at scale. When used strategically, social networks help businesses expand reach, drive website traffic, generate leads and build brand loyalty.

Traditional vs. Modern Communication Methods

Business communication has evolved significantly over the past few decades. Traditional external communication methods like print, TV, and radio are still useful but face strong competition from modern digital and social channels.

Print

Print publications such as newspapers, magazines, brochures, and direct mail used to be the primary way for businesses to reach broad external audiences. Print ads can convey branding, messaging, offers, and other details. However, print circulation and readership have declined with the rise of the internet. Print still offers creative options for communication but lacks the immediacy, personalization, and measurability of digital channels.

TV and Radio

Television and radio ads can reach a mass audience through sight, sound, and motion. They work best for brand-building versus direct response. Scaling TV and radio ads across different markets can be expensive compared to digital options. And it's hard to target specific customer segments. Still, TV and radio remain staples for awareness-driving campaigns.

Digital and Social Media

Digital and social media enable targeted, measurable, and cost-efficient external communication. Email, websites, blogs, and social platforms like Facebook, Instagram, Twitter, LinkedIn, YouTube, TikTok etc. make it easy to directly engage external audiences. Companies can tailor messaging and offers to different customer profiles based on data and insights. Unlike traditional media, results can be closely tracked in real-time. The rise of digital external communication has transformed marketing and PR.

Choosing the Right Platform for Your Business

When choosing an external communication platform for your business, it's important to consider your audience, goals, and messaging. The platform you choose should align with who you are trying to reach and what you hope to achieve through your communications.

Consider Your Audience

Get very clear on who your target audience is. Are you trying to reach potential customers? Investors? Media? Industry partners? Understanding your audience will inform what platforms make the most sense. For example, LinkedIn may be better for reaching other businesses, while Instagram provides access to consumers. Know who you need to connect with and where they are spending their time online.

Align with Your Goals

What are you trying to achieve through your external communications? Are you driving sales? Enhancing brand awareness? Recruiting talent? Your goals should steer your platform selection. If you're focused on ecommerce sales, ensure your platform has shoppable features. If recruiting is a priority, lean towards platforms that provide talent sourcing tools. Match your platforms to the outcomes you want.

Tailor Your Messaging

While your core messaging should stay aligned across platforms, you can tailor tone, format, and specific content to resonate with each audience. For example, messaging on Twitter can be more conversational, while LinkedIn provides room for thought leadership content. Ensure your communications style suits each platform's expectations while staying true to your brand voice.

Choosing the right external communication platforms takes thought, but the effort pays dividends through effectively reaching your audiences. Define your goals, know your audiences, and tailor your voice to set your business communications up for success.

Strategies for Impactful External Communication

Effective external communication requires clear objectives, consistent messaging, and engaging your audience. Here are some key strategies:

Set Clear Objectives

Before communicating externally, define your goals and desired outcomes. What response do you want to elicit? How do you want people to perceive your company after reading your message? Setting objectives keeps communications focused and aligned with business needs.

Maintain Consistent Messaging

Consistency builds trust and credibility. Make sure information across all platforms and channels is unified and reinforces the same core messages. Repetition also aids retention, helping audiences remember your brand.

Engage Your Audience

Two-way communication fosters stronger relationships than one-way messaging. Encourage feedback through surveys, social media, and other interactive channels. Craft content that speaks directly to your audience's needs and interests. Share behind-the-scenes glimpses to build rapport. Respond promptly and thoughtfully to questions and concerns. An engaged audience becomes invested in your brand.

With clear goals, unified messaging, and active audience participation, your external communications will make a powerful impact. Consumers today want openness, transparency and a connection with the companies they support. Effective strategies help position your business as approachable, trustworthy and responsive.

Examples of Great External Communication

External communication campaigns can significantly boost brand awareness and customer engagement when done right. Here are some stellar examples from top brands:

Coca-Cola's "Share a Coke" Campaign

Coca-Cola personalized their classic Coke bottles by printing common names on the labels and encouraging people to find bottles with their name and share with friends and family. This simple but creative concept went viral on social media and connected with consumers on an emotional level.

Always' "#LikeAGirl" Campaign

Always flipped the common insult "like a girl" on its head by showing that doing things #LikeAGirl is actually powerful. Their empowering Superbowl ad and social campaign combatted stereotypes and engaged audiences.

Dove's "Real Beauty" Campaign

Dove focused on authenticity and body positivity by featuring real women of diverse shapes, sizes and backgrounds in their ads. Their viral campaigns like "Real Beauty Sketches" resonated with women and redefined narrow beauty standards.

Nike's Colin Kaepernick Ad

Nike took a stand on a controversial issue by featuring Colin Kaepernick in their "Believe in Something" ad campaign. Despite some backlash, the ad aligned with their brand values and engaged their target demographic.

Starbucks' "Race Together"

Starbucks aimed to spark dialogue on race relations by having baristas write "Race Together" on cups. While criticized by some as superficial, it showed Starbucks' willingness to address social issues.

External Communications and Business Success

Effective external business communication is critical for the success and growth of any organization. The way a company communicates with the outside world directly impacts brand awareness, reputation, and sales.

Driving Brand Awareness

External communications help elevate a brand by increasing visibility and reach. The more a company interacts with customers, media, investors and other external stakeholders, the more awareness it generates. Strategic PR, social media marketing, events, and advertising campaigns expose the brand to new audiences and get people talking. This expands the company's presence and influence.

Building a Positive Reputation

What an organization communicates externally affects perceptions and reflects on the brand image. Maintaining open, transparent and proactive communications portrays the company as trustworthy and responsible. Positive PR and word-of-mouth shape stakeholder opinions and support a favorable reputation. On the other hand, poor or misleading communications can damage credibility and trust.

Generating Sales

Effective external communications convert interest into sales. Advertising, email marketing, social media and other channels directly promote products and services to prospects. Useful, engaging content and experiences on the company website also nurture leads and drive conversions. PR raises awareness just before product launches. And good customer service ensures existing buyers have a positive experience that turns them into brand advocates.

In today's interconnected world, external communications are indispensable for business success. A strategic, multi-channel approach drives brand awareness, shapes reputation and generates sales. Organizations that communicate clearly, consistently and effectively are best positioned for sustainable growth.

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