In the fast growing and changing competitive market, it is inevitable for the business to win the trust of their customers. Building trust with the customers is a process of creating an emotional bondage between them and that needs to be seriously taken. Past studies showed that in service industries, trust with the customers can be created by positively engaging with them through an honest and effective communication. The current literature review is to show how effective communication influences the customer satisfactions which help to build strong relationship between the customers and the business in the context of service industries.The argument is therefore built along the extra-organization trust development between the business and the external customers, where studies of trust development and impact of communication in service firms like Financial Services and Healthcare have been taken for example. Finally a theoretical proposition is developed for future research to explore whether firm performance is positively influenced by effective communication and trust between the service provider and the customer.