What is two-way communication, and how does it work?

Advancing beyond the old model in which businesses tended to talk at their customers rather than communicate with them, a two-way conversation proactively initiates a customer interaction on the digital channels where they are already most active and engaged — for example, by sending an SMS notification about an upcoming appointment or delivery that asks them to confirm the time or reschedule if desired.

Businesses can use these kinds of two-way conversations to deliver personalized, frictionless experiences and earn valuable customer trust. Two-way communication is sometimes also mentioned alongside related topics like conversational commerce.

What are the main components of a two-way communication model?

The main components of a two-way communication model are:

1. Sender: The person or entity who initiates the message.

2. Message: The information or content being communicated.

3. Receiver: The person or entity who receives and interprets the message.

4. Feedback: The response or reaction from the receiver back to the sender.

5. Channel: The medium through which the message is transmitted (e.g., face-to-face, phone, email).

6. Noise: Any external factors that may distort or interfere with the communication process.

Why is two-way communication important? The benefits

Businesses have two key reasons to initiate two-way conversations with their customers. First and foremost, they satisfy customer demand for a convenient and comfortable experience, while showing that the business cares about their concerns. Second, they significantly amplify the results that companies would otherwise gain from their existing marketing and commerce activities, including the potential for an increase in online sales.

Benefits for customers

A large portion of mobile device time is spent on chat apps, and this trend is already having a pronounced ripple effect on customer preferences for engagement. In fact, the Vonage Global Customer Engagement Report shows growing customer interest in messaging, social, and video chat apps. A key to the chat experience, as any avid chat user will tell you, is a snappy back-and-forth conversational dynamic. Not only is it convenient, but it also builds intimacy and trust over time.

Customers increasingly expect the same level of ease and familiarity when communicating with businesses, and two-way conversations can make it possible. When businesses send their customers push notifications about upcoming appointments or deliveries, they can kick off interactions that keep their customers engaged and inspire trust. These seemingly small, bite-sized exchanges serve to strengthen customer relationships in the long run.

Benefits for businesses

Businesses have discovered that two-way communications can provide opportunities for revenue growth, increased customer loyalty, and returning customer engagement. Two-way conversations accomplish these results by engaging customers on the channels they find most familiar and convenient. And the more comfortable customers are when communicating with a brand, the more likely they are to make a purchase. By offering customers timely and personalized engagement — for example via helpful chat sessions with AI conversational bots — businesses can reduce cart abandonment and improve conversions.

What are the advantages and disadvantages of two-way communication?

As with any customer engagement strategy, there are pros and cons to keep in mind when it comes to conversational commerce. Here are a few worth considering:

Advantages

• Meet customer demand for instant, convenient, satisfying service on their favorite digital channels

• Engage customers at exactly the right moment, when a purchase is top of mind

• Amplify the impact of existing marketing activities and campaigns, particularly in an omnichannel context

• Deepen customer relationships over time

Disadvantages

• Require strategic planning and staff resources to achieve maximum results

• Need the right technology tools and partnerships to be successful

Types of two-way communication

Here are some common types of two-way communication:

1. Horizontal communication occurs between peers or colleagues at the same level within an organization, often used for coordination, collaboration, or information sharing.

2. Vertical communication happens between different levels in an organization (e.g., manager to employee or vice versa), typically for giving instructions, reporting progress, or receiving feedback.

3. Asynchronous communication doesn't happen in real-time, allowing participants to respond at their convenience, such as emails, recorded messages, or forum posts.

4. Instantaneous communication takes place in real-time, with immediate feedback, like phone calls, live chats, or video conferencing.

Each type has its own use case, depending on the context and the speed at which communication needs to happen.

Tools needed for two-way communication

There are many tools and solutions to help you create two-way conversations. For those seeking to capture the conversation and opportunity, a conversational commerce platform is a great choice.

By creating AI-powered experiences, you can engage customers on their favorite channels — RCS (rich communication services), website, Facebook Messenger, Instagram, WhatsApp, SMS, and more — to help boost sales and secure customer insights. Just as important, conversational commerce operates 24/7 and adds information, automation, and self-service to conversations. So even if you’re not selling, you are continually servicing your customers — such as providing front-end FAQs, authenticating users, authorizing payments, and more.

Companies can quickly integrate conversational commerce through an end-to-end solution like Vonage Conversational Commerce, powered by Jumper.ai. For more complex requirements, Vonage Communications APIs can help shape a customized solution.

Messaging APIs have a strong role to play in conversational commerce, as messages are a key first step in starting a conversation with customers. By incorporating popular channels like WhatsApp and Facebook Messenger into your strategy, you can reach customers where they are already most active and engaged. Thus, the messages channel is a great first point-of-contact to engage potential customers.

3 two-way communication examples

Conversational commerce can sound like an abstract concept at first. Real-life two-way conversation examples can be helpful for understanding how this approach delivers results. Here's how three companies are using two-way conversations with impressive outcomes:

1. Beauty brand L'Oréal hosted a 12-hour beauty festival over Facebook Live using conversational commerce solutions — and generated a month's worth of online sales in 24 hours.

2. Ice cream company Ben & Jerry's ran a campaign bridging Facebook Messenger that secured a 220% increase in customer traction compared to other campaigns, as well as a 68% conversion rate.

3. Disney used conversational commerce to create the first-ever conversational purchase bot to help drive box office ticket sales via Facebook comments. The bot generated 18 times more engagement, a 58% conversion rate, and an 80% reengagement rate for Ant-Man and the Wasp.

The role of two-way communication in conversational commerce

When a business initiates a two-way conversation — for example, by sending out a notification about a retail sale — it can better engage customers and build a positive customer relationship early, when it's vital to earn customer trust. Simply inviting customers to confirm their appointments or reschedule for times that are more convenient for them puts customers in charge, making it clear that the business values their time and wants to provide them with high-quality service.

Notifications also set the tone about what the customer can expect from brand relationships going forward. They signal that a two-way conversation is not only welcome but encouraged, increasing the likelihood the customer will provide valuable feedback that the company can use to improve the customer experience.

How to encourage two-way communication in the workplace: best practices

Encouraging two-way communication in the workplace is essential for fostering collaboration, trust, and productivity. Here are some best practices to promote effective two-way communication:

1. Create an open-door policy: Encourage employees to share their ideas, feedback, and concerns without fear of judgment or reprisal. A transparent and accessible leadership style builds trust.

2. Foster active listening: Make sure managers and team members actively listen to one another by giving full attention, asking clarifying questions, and offering feedback, ensuring everyone feels heard.

3. Use collaborative tools: Implement tools like Slack, Microsoft Teams, or other instant messaging platforms to facilitate real-time communication and collaboration across teams.

4. Encourage regular feedback: Make it a habit to regularly ask employees for feedback on projects, processes, and management. Use surveys, one-on-one meetings, or team discussions to gather insights.

5. Host team meetings and check-ins: Regular team meetings or one-on-one check-ins ensure employees have the opportunity to voice concerns, share ideas, and align on goals and priorities.

6. Promote inclusivity: Make sure all voices are heard, especially from quieter team members or those from diverse backgrounds, creating a more balanced conversation.

7. Set clear expectations: Ensure expectations for two-way communication are clear, whether through guidelines or informal practices, so employees understand when and how to share their thoughts.

How can your business get started with the two-way communication process?

Customers expect seamless, two-way communication with businesses, just like they have with friends: quick, responsive, and convenient. To build trust, brands embrace conversational commerce through chat apps, social media, and AI-driven interactions like virtual agents and notifications.

You’re missing out if you're not leveraging two-way communication to enhance customer satisfaction and drive business growth. Now’s the time to explore this powerful engagement strategy with the Vonage Messages API. And if you're in retail, Vonage Conversational Commerce offers a seamless end-to-end e-commerce solution to keep your customers engaged and coming back.