Netherlands based AI & dynamic pricing company MarketRedesign is fast-tracking its success with high-end artificial intelligence SaaS solution PriceCypher. The software solution is now recognised by Gartner and Forrester in their respective B2B pricing optimization software guides. Large industrial companies in manufacturing, logistics and wholesale can now advance their classical sales and negotiation processes through digitalisation and state-of-the-art AI.
An increasing number of companies rely on pricing solutions to increase revenues, optimise margins and improve customer retention. Both Forrester and Gartner release guides in which they include selected vendors to inform C-level management about available dynamic pricing solutions for B2B, as well as market trends and developments. “We are incredibly proud to be recognised by Gartner and Forrester and have PriceCypher included in their reports”, states MarketRedesign CEO Ruud Schmeink, who has two decades experience in large industrial organisations.
Industrial sectors have been left in the dark
According to Schmeink AI-driven pricing software will drastically improve sales processes that have been operating on classical standards for as long as a century. He explains: “Dynamic pricing solutions are quite common in sectors such as retail, e-commerce, hospitality and aviation, but industrial sectors have been left in the dark. Benefits like 3-5% margin growth, improved customer retention and faster negotiations are too good to ignore.” MarketRedesign currently focuses on large industrial B2B companies globally with PriceCypher, but is also working on launching an automated solution for SMEs in 2021.
Companies affected by COVID-19 can increase profit margins
The results of applying dynamic pricing are astonishing; margin growth of 3 – 5% margin is a minimum improvement industrial companies may expect. “In markets negatively affected by COVID-19, a solution that can be implemented within 4-6 weeks with such a high ROI is more resourceful than cost-cutting and lay-offs” according to Jeroen Smeets, Innovation Director at MarketRedesign. “The AI is explicable, the implementation simple and the effects tremendous.”
Harvesting a goldmine of data
Large industrial organisations possess a goldmine of data, including customer order patterns, price-volume trends, negotiation behaviour and price sensitivity. All of this data is a highly valuable source for sales teams to negotiate higher margin deals. Smeets: “The key to a successful and smart dynamic pricing solution lies not only in calculating an optimal price recommendation, it should also check how this recommendation fits on a strategic level and consider customer risk.” PriceCypher facilitates this by providing a strategic price steering and governance module.
Governance and ethical standards
PriceCypher accommodates product and business managers to steer pricing based on the markets the company is operating in. This allows companies to adapt their pricing strategies real-time to meet market requirements quickly and stay ahead of competition continuously. Since the technology will change daily operations, integrating an AI-driven pricing solution entails training. Schmeink advises that organisations understand the responsibility of adding an artificial brain to their workforces, and thus, need to have solid governance and ethical standards in place to monitor settings and performance of algorithms in operation.
MarketRedesign is an AI & Dynamic Pricing company located at the High Tech Campus in Eindhoven, The Netherlands. Its team consists of mathematicians, data engineers, software developers, as well as business managers who understand the effort of change of industrial companies and the pain that comes along with it.