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KVI Pricing

Automatically identify a complete list of KVIs in your assortment and use it for enticing shoppers!

KVI pricing instantly raises your customer traffic, improves the price and assortment perception of your stores, and increases your profits.

What is KVI Pricing?

You identify and update a complete list of KVIs and deliver more attractive prices of those KVIs, compared to your competitors.

At the same time, you identify where in your assortment you can regain your margin. For such SKUs, you increase the margin.

What are KVIs?

KVIs (Key Value Indicators / Items) are a group of goods which can perform several essential functions for a store at once:
  • 1
    Shape consumers' price perception:
    Shoppers tend to notice, compare and remember KVIs prices.
    By KVIs prices, a consumer determines a price category of a store, such as "unfairly expensive" or "they provide great prices here."
  • 2
    Affect consumers' assortment perception:
    Finding or not finding KVIs in a store, a shopper determines the shop as "This is the right place, I usually find here everything I need", or
    "There is always only half of the goods I need here; I'll visit this store last."
  • 3
    Drive traffic to store:
    With the optimal price, KVI attracts new customers and increases conversion to purchase.
Generally, KVIs have the following characteristics:
  • Popular goods (best-selling, frequently purchased) that customers tend to research and whose prices they tend to notice and compare.
  • Goods with a strong brand that competitors have in their assortment and whose prices shoppers compare easily in different stores.
  • Not impulse goods.
There are also "non-branded" KVIs: frequently purchased product categories in which well-known brands are absent or unimportant for the target consumers.
In the grocery, for example, potatoes, bananas, fresh meat can be non-branded KVIs. Shoppers investigate how much an acceptable quality product costs in different stores.

Some retailers use a simplified approach; they classify all best-selling goods as KVIs: true KVIs, first-price goods, top-selling SKUs.
This simplification often has a sense because of price transparency growth. Using price-comparison applications, such as Basket (basket.com), consumers don't need to rely on their memory anymore, even buying groceries; they can quickly compare both the price of specific SKU and the whole basket value in different stores.
Reducing KVIs prices attracts new shoppers and increases conversion to purchase; consumers make decisions easier and faster with a low price. Thus, you increase your sales and gross margin.

If a retailer lacks some KVIs in its assortment, it loses its customers: shoppers switch to competing stores.
Where can a retailer recover its margin elsewhere in the assortment? On what SKUs can they charge higher prices? Such SKUs have the following characteristics:
  • Price varying of these goods is not crucial in determining to buy or not and where to buy.
  • Shoppers are poorly aware of the market price of these SKUs and their substitutes.
Complementary goods and impulse goods often have the potential to raise the margin.

What do companies achieve with KVI Pricing?

A systematic, fact-based process for identifying and updating the KVI list, with delivering optimal prices for KVIs, enables retailers:

● Improve their assortment planning. A complete list of KVIs empowers a company to prevent situations when KVIs are out of stock.
● Increase their sales. With optimal prices, KVIs drive traffic to a store, attract new shoppers, and improve conversion to purchase.
● Raise their gross margin by increasing sales and recovering margin on non-KVI goods.
A hint:
Combine KVI pricing with performance marketing optimization. Load KVIs prices automatically directly into your ads from Imprice.
CASE STUDY
KVI Pricing
Supermarket chain turns to data-driven KVI pricing to add value to consumers and increase profits
Read the full story
CASE STUDY
KVI Pricing
Hypermarkets increase gross profit by 6,6% with AI and KVI pricing
Read the full story
CASE STUDY
KVI In Retail —
4 Common Errors In 2022-2023
Impressive examples from the retail practice in Eastern Europe and the CIS: how retailers fixed KVI errors, and what results they got.
Read the guide

How KVI Pricing Works with the Imprice Platform

Rule-based dynamic KVI Pricing.

Your pricing specialist:
● Uploads your KVIs list to Imprice.
● Creates a special "KVI segment" for these SKUs.
● Marks your main competitors.
● Enters pricing rules for the KVI segment, considering a target price position among main competitors.

Imprice automatically recalculates prices according to the entered rules, using current data from your ERP and your competitors' prices data. The platform automatically uploads new prices to your ERP, website, mobile application, data exchange system. The minimum interval for recalculating prices is every 10 minutes.
Automatic KVIs Identification module.

One algorithm of the module identifies all KVIs in your assortment and automatically updates the resulting list in real-time.

Another algorithm calculates the optimal competitive price position for each KVI. The result is a transparent, data-based recommendation for every specific KVI: what is more profitable for your company, to use the first minimum price of the market, or second, or even fifth.

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Key Competitors Automatic Identification module.

For each item, the module points out:

● A list of key competitors: retail companies that affect your sales of the item. The analytics use the history of competitors' price changes, your sales history, and other factors.
● A list of competitors you need to exclude from your price calculations because they don't affect your sales.

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Talk to Imprice pricing experts:
+39-02-82955-708