BrazilDeloitte bolsters pricing services with MarketRedesign's intelligence
Deloitte has acquired MarketRedesign, a Dutch software scale-up that provides companies with artificial intelligence-driven pricing insights.
“With MarketRedesign aboard, we will now be able to offer a true end-to-end pricing proposition, supporting clients with everything from strategy and analytics to software implementation and change management,” said Erik Nanninga, the Managing Partner of Deloitte Consulting in the Netherlands.
Since its inception ten years ago, the data 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.
“PriceCypher is an incredibly advanced tool, bringing together decades of pricing expertise and experience embedded in its algorithms. 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,” explained MarketRedesign founder Ruud Schmeink.
Using insights from its tool, B2B companies can reap major gains. “Pricing is arguably the most important lever to maximise profitability, with for instance a 1% price change able to make a 10-15% difference to a company’s margin,” said Schmeink. “Pricing can help companies offset increased costs, maximise value and reduce customer churn.”
At the same time, over the years, optimising pricing has become “incredibly complex”, in part due to the rise of new (digital) sales channels and rapid globalisation. Add to this the changing nature of consumer behaviour and the supply chain disruptions caused by Covid-19, and the backdrop is clear: “companies are increasingly looking for support.”
Scaling-up with Deloitte
This is where the combination with Deloitte, a global leader in pricing consulting services, comes in. Schmeink explained: “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 tailored to this market is unique, putting us in pole position to capture market leadership.”
“What limited us in our growth potential is our capacity. Joining forces with Deloitte – a large, well positioned organisation with a global reach – will help us really take advantage of our pole position, stay best in class and support a much wider base of B2B clients than we could on our own. Deloitte proved to be the perfect match.”
MarketRedesign currently serves blue chip companies in the chemicals, energy and insurance sectors. Leveraging Deloitte’s global network, the firm will now seek to expand its client base, both to other sectors as well as internationally.
For Deloitte, the bolt-on adds a missing piece to its pricing portfolio. “MarketRedesign’s PriceCypher will be a major building block of Deloitte’s end-to-end pricing capability, which ranges from commercial strategy, over commercial analytics, software and cloud integration with our alliance partners Salesforce and AWS, all the way towards implementation and change management,” said Randy Jagt, a partner at Deloitte.
“Optimising pricing is a mega opportunity for our clients and high on their agenda. 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, said Jagt.
Tina Scheele, also a partner in Deloitte Consulting’s Customer Strategy team, asserted that the move puts Deloitte well ahead of its rivals in the pricing space. “Our offering cannot be matched by any competitor in this space.”
The deal is Deloitte’s third in the Netherlands in 2021, following the acquisitions of ServiceNow specialist Odysseus and the life sciences consulting practice of Iperion.
