With the MarketRedesign acquisition, Deloitte is ready to revolutionise B2B pricing has been saved
With the MarketRedesign acquisition, Deloitte is ready to revolutionise B2B pricing
Optimised pricing is the single biggest lever for profitability and customer retention.
To better support its clients in this area, Deloitte has just acquired boutique AI company MarketRedesign, developers of PriceCypher, a cutting-edge AI dynamic pricing solution targeting large industrial clients. With MarketRedesign aboard, and PriceCypher part of its service offering, Deloitte will be the only strategic consulting party that offers an integrated end-to-end pricing proposition.
Just a 1% price change can make a 10-15% difference to a company’s margin, so pricing is arguably the most important lever to maximise profitability. In recent years, setting the right prices at the right time to the different customers has become increasingly important in light of the rise of new (digital) sales channels, the growing availability of data and rising commodity prices. As pricing decisions are becoming more and more complex, Artificial intelligence can be used to identify pricing trends and suggest an optimised price, taking into account a range of factors, from market share to profitability to customer retention.
MarketRedesign’s unique B2B pricing tool
For the past 10 years, working in collaboration with universities, the scientists of MarketRedesign have been helping B2B companies around the world uplift their profit margins by optimising pricing and sales processes. At the heart of MarketRedesign’s service offering is its AI-based dynamic pricing engine, PriceCypher. This smart diagnostic tool identifies improvement potential from one end of the sales process to the other. Moreover, the tool can be integrated into clients’ front end systems and is compatible with major cloud platforms, pricing & quoting applications and CRM systems.
Accelerating global rollout
Over the years, MarketRedesign has built a solid track record in the international blue chip B2B market, ranking high in Gartner’s rating of pricing solutions. As founder Ruud Schmeink, who will become a partner at Deloitte, explains: “The B2B market is a ‘blue ocean’ for us: there’s great need for what we offer and little competition. Our end-to-end dynamic pricing solution is unique, putting us in pole position to capture and maintain market leadership. The growth potential is practically unlimited and so is our ambition. What limited us was our capacity as an independent company to scale up our operations in a reasonable timeframe. That’s why we decided to team up with a large, well-positioned organisation with a global reach. That way, we can really take advantage of our pole position, stay best in class and scale our solution to a much wider base of B2B clients. Deloitte proved to be the perfect match.”
Forward with Deloitte
Ranked by Gartner as the #1 in Consulting Services by revenue and recognized as a global leader in pricing consulting by ALM, Deloitte has an extensive and well-established set of capabilities and market connections within MarketRedesign’s target market. For Deloitte, the acquisition of MarketRedesign brings vast potential to scale MarketRedesign’s proposition to B2B companies across its global network. Moreover, Deloitte has extensive expertise in Enterprise Resource Planning (ERP), software development and cloud integration, with strong alliance partnerships in this area (SAP, AWS, Salesforce). All in all, Deloitte has just the capabilities and connections needed to better integrate MarketRedesign’s solution into their clients systems.
Invaluable tool in Deloitte End-2-End pricing offering
Randy Jagt and Tina Scheele, both partners in the Customer Strategy team at Deloitte Netherlands, are excited about the acquisition of MarketRedesign. Tina: “Pricing is the biggest lever of margin growth. The leading-edge dynamic pricing optimisation tool PriceCypher will be a major building block of Deloitte’s end-to-end pricing capability, which ranges from strategy, over analytics, software and cloud integration with our alliance partners all the way towards implementation and change management.
Randy agrees. “We’re very impressed by MarketRedesign’s track record. Together, we’ll have an even stronger pricing proposition for our B2B clients worldwide. Indeed, a unique proposition, that will differentiate us from our competitors and revolutionise the B2B pricing practice. We’re very much looking forward to working with MarketRedesign’s team and adding their unique AI-based dynamic pricing engine to the toolkit we can offer to our clients. Optimising pricing is a mega opportunity for our clients and high on their agenda."