The standard definition of a Key Value Item (KVI) is “an item which drives the price/value perception for customers.” But we’ve found a wide variation in the actual interpretation and usage across our retailer clients. In this post (the first of three on KVIs) we’ll lay out four common definitions and grades each of them on how well they can actually be put to use.
Why is this important? Every single time a customer sees a price on your shelf, they update their opinions on your price and value equation. Understanding which products have large impacts and which have small is crucial to optimizing your pricing strategies (both promotion and everyday).