Leading with Questions: Why Socratic Questioning Can Change Your Business For the Better

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Perhaps you’ve heard the term “Socratic Questioning” before, or even the “Socratic Method.” We’re revisiting the term today as a business value driver where the right questions can lead to critical thinking that helps a company spot its opportunities for growth.

The concept itself is therefore about digging deeper into your company and brand’s strengths and weaknesses, asking the open-ended questions that can identify helpful gaps and find solutions for each. In that same breath, these solutions will strengthen the financial health of your business— the ultimate bottom line.

What does Socratic Questioning look like?

The questions this method asks were, as meant per the philosopher Socrates, to discover underlying ideas and truths that only come out when probed or provoked.

In business, we can ask these questions to our management teams, our finance team, our stakeholders and our customers to understand just how well the business is performing and what could be done better. Below are some thought-starters to get the ball rolling. Feel free to interchange certain terms for your use:

For stakeholders:

  • What are your thoughts on our current business plans?
  • Would love to hear more of what you have to say about this matter?
  • What are some solutions you’d like to employ to combat this issue?
  • In your opinion, what are some potential disadvantages to our new idea?
  • Are we prepared with crisis plans?
  • How do you feel our latest developments align with your strategic goals for the company?
  • From your past experience, what does “success” look like for this project and what are some key performance indicators we can follow?
  • What would need to happen from our end in order for you to feel comfortable with this project? 
  • What is your feedback on our latest development? What ways can we be better next time?

For internal teams:

  • In what areas do you feel the team is succeeding?
  • Where do you see room for improvement?
  • What factors are best contributing to your performance level?
  • What responsibilities do you find most challenging, and why?
  • In what ways do you feel the team can be more productive? What steps can get us there?
  • If there was one thing you could ask the company, what would it be and why? 
  • What has been the most rewarding part of your work?
  • Where do you see yourself in 5 years?
  • Are there any barriers you can think of that are impeding us from meeting our brand vision?
  • What are some ways we can help keep the team engaged and motivated?
  • How would you describe our corporate culture?

For customers:

  • What do you look for in a company and what values do you have as a customer?
  • What brought you to us and what would help keep your business?
  • What are some positives you can share about your experience with us and where can we improve?
  • What other features, products, or services would you be interested in as a consumer?
  • What did you think of the price tag for our product or service? What would you need to see improved if we were to increase it?
  • What, in your opinion, is “too expensive” for this type of service?
  • Would you recommend us to others? Why or why not?
  • How do you feel about the marketing or advertising for our company? Anything you would change?

Focusing on Growth and Financial Health

In the world of business, asking the right questions can stimulate critical thinking and problem-solving and can be a powerful tool for businesses looking to improve their strategies. By asking questions that challenge assumptions and encourage deeper analysis, businesses can gain new insights and identify opportunities for growth.

In general, Socratic questions can be broken down into clarification questions (“could you explain further? why or why not…?”), assumption questions (“what is an example of… ? What are some ways…?”) and probing questions (“in your opinion, how would you…? What did you think of..?”).

No matter the question, the goal for a business using the Socratic method is to establish a footing in understanding the financial gaps and opportunities the brand is facing.

With stakeholders, it’s important to understand just how to keep them happy and in line with the business perspective. With internal teams, the questions are meant to keep employees inspired and feel part of the future of the brand. With customers, it’s best to see just what can be done to retain them and what can be done to attract the new. When all three groups are kept appraised of, the brand can continuously grow and develop.

This is where a financial analyst, consultant or CFO comes in.

The answers to these questions will help reveal exactly what your business is doing well and what can be done better. A financial and business expert will consider the stakeholder opinion, identify what areas of your business are missing an opportunity, what does the competition charge and offer in comparison and where can we cut costs and listen to employee ideas for improved productivity.

Your fractional CFO can also help you decide which ideas, pitches or strategic direction is able to be expanded upon. For example, if an employee is suggesting to hire more talent to benefit the team, your CFO can help you see if the action is indeed feasible and within your budget. If customers unanimously agree services can charge more if a certain feature is added, you can work together on a business plan to enact those decisions and initiate a price increase.

AE Tucker is Here to Help

AETucker Consulting can help you ask the right questions to achieve the best results. We help your company address the correct audiences, analyze their answers for the most fruitful solutions and see what gaps we can close to help your business thrive. If you’re ready to ask some questions, please reach out at: Andrew@AETuckerconsulting.com or call 704-651-2216.

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Help Your Business Find Its Voice: Value Propositions Explained  

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2024 is just a few months away and, as we head into a new year, it’s a good time to think about what it is that makes your business your business. What part of your brand stands out in its industry?

The best way to answer this question is conducting a differentiator value proposition (DVP), a marketing strategy that is all about a company setting itself apart from competitors by highlighting what it is they do that others don’t.

This is essential not only for the health of a business but also its ability to thrive. When a business is able to zero in on the key reasons they should be who the customers buy from, they can efficiently target their audience and goals as well as drive sales and ultimately growth.

Below is a break-down of a successful DVP:

Identify What Makes You Special

How well can you tell someone what makes your business special?  Can you put your thumb on it?

Business owners usually start their business to address an unmet need in a certain industry. For a successful DVP, it’s time to dig into the roots of how the company addresses the need and why they are better than any other company at doing so. Think about what technology or method you use to achieve these results.

An example of the proper DVP brainstorm is filling in the blanks in the following:

“Our company is able to solve ____ for our customers in the ____ market because we offer ____  through the application of ____.”

By the end of the exercise, you should be able to pinpoint:

  • The competitive advantage you offer your customers through your product or service
  • Who your target audience is — what is their demographic, their purchase behavior or their generational footprint?  In industry jargon, you need to develop your Ideal Customer Profile (ICP).
  • What makes your products or services relevant no matter the climate?
  • Why should your customers choose YOU?

Honing in the Numbers

What many often forget is that unlike a marketing tagline or slogan, a DVP is all about putting words to action. In other words, you need proof.

It may take time to get the numbers you need to prove why your business is the best of the best, but statistics, data and especially customer stories go a long way in developing the trust of a new customer (who doesn’t love a good story?). For example, is your service able to be completed twice as fast as others in the market? Do you have 100% satisfaction among customers? Does your product last 3 years longer than others?

Whether it be sending out customer surveys, collecting quotes from other established companies, conducting customer interviews in person, testing your products against the statistics shared by a competitor and proving their competitive advantage, or getting endorsements, work to get the numbers you need to position your differentiator value proposition effectively.

Understanding What Makes a Unique Value Proposition

In 2015, Microsoft proved that we now have the attention span shorter than a goldfish: you can lose a customer’s attention in about 8 seconds.

This means your DVP has to win them over in 7 seconds to truly seal the deal.

Let’s take a look at what consists of a proper DVP:

  1. Clear, concise and impactful— leave no room for questions 
  2. A customer should understand why your brand is different from all the rest
  3. A customer should see precisely why your product or service benefits their life
  4. There are no bold claims or opinions or marketing slogans— just facts
  5. It’s broken up with visuals and bullet points and able to be read in 7 seconds or less

Publishing Your Ultimate Message

One more gentle reminder: your DVP is not a slogan like Nike’s “Just Do It” or marketing ploy like “Never seen before results!”. This is a factual, clear and in-depth proposition as to why a customer should choose your product or service. It usually lives on the landing page of your brand website and takes a customer through the journey of your brand.

Convince them they cannot live without you, through facts, data and analysis that is digestible — and direct. Usually, the most effective propositions start off with a powerful headline, offer specific explanations, use bullet points to offer short, impactful snippets of data and employ visuals to share the exact use of the product or service.

Everyday we use countless products or services because they satisfy a need and are easy and convenient. What brands, products or services can you think of that have done a phenomenal job at defining their DVP?  Netflix?  Nike?  Uber?  Apple?  Amazon?

Working with a Trusted Fractional CFO

Identifying and defining your DVP and being able to ensure you track how well it brings in revenue can be a complex task. This is where your Fractional CFO becomes a crucial and valuable asset. With financial expertise and acumen, they can help you evaluate your product or service from a financial perspective and identify the unique features that can be leveraged to create a compelling DVP.

More importantly, CFOs like those at AETucker Consulting can source the gaps your business is presently experiencing and see where the miscommunication between customers and the business value begins. Once identified, your CFO can not only work to ensure your DVP reflects the current realities of your business, but also they can tell you how to get the proof of the numbers (see Honing in the Numbers section) and how to track them for future KPIs.

To this end, your CFO can develop a clear and concise differentiator value proposition for you that will resonate with your target audience, help you stand out in a crowded market, and help you establish yourself as a leader in your industry.

To learn more about AETucker Consulting and how we can be of service to ensuring your DVP is done right, please visit my website, aetuckerconsulting.com and schedule a complimentary and confidential conversation today. I’m a phone call, email or calendar invite away!

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