5 ½ Tips to Get the Most Out Of Your Key Value Item (KVI) List
It’s best to think of a Key Value Item (KVI) list similar to produce, the fresher the better. Shopper trends are constantly changing and it’s important to keep your KVI list updated with the most important items, but also some new up and coming ones as well. As new items are introduced and gain popularity, it’s imperative to get the pricing right before they peak and establish a solid customer base that shares your “great deal” through word of mouth. Below are 5 and 1/2 tips to ensure you’re getting the most out of your KVI list and competitive price checks.
1) Updating Your Shopper Personas: Define Your Shopper
Your shoppers drive your Key Value Items (KVI), it’s important you understand who they are and what their preferences are. Updating shopper personas should be done annually and keep in mind to not get carried away in the micro details. Want some tips on updating your personas? check out HubSpot’s post here. Overall, keeping your personas up to date will help you decide whether to add one item over another, letting you keep your KVI list between 500 – 2000 items and representative of your shoppers.
2) Separate Out Sales By Digital & Bricks
Different buying channels cause different drivers that might skew your POS analysis. What drives digital sales might not drive in-store sales. By separating your sales, it will show shopper trends that can be utilized to maintain your KVI list.
3) Accurate Private Label Representation
Instead of just a few generic, cheap alternatives, today’s private labels service every customer’s need with items that are premium, organic, and even gluten-free. Ignoring private-label is a big mistake, and although it can be difficult matching the items within your database, tools such as RW3’s Private-Label Item Matcher can help significantly and should be considered.
4) Maintain a 95% Collection Rate
Sometimes items are going to be missing, if an item is not consistently being collected there might be an issue with the collector, the item is no longer in distribution, or the item has been rebranded or size altered. Reach out to your retail price collection partner to figure out why and make adjustments to your KVI list as needed.
5.) Transforming a Static KVI List into a Dynamic KVI List
With shopper trends changing almost monthly, a static KVI list that gets updated annually isn’t going to cut it anymore. To keep up with today’s shopper, we recommend removing 10% of your lowest KVI items (lowest in sales) and replacing them with either items that have a high percentage of growth but lack the sales volume or identifying new trends and selecting a few items in those subcategories. By focusing more on growth percentage then volume you’ll stay ahead of the trends and keep your shoppers happy by delivering the most competitive prices on items they value the most.
5.5) Turn To Social Media for Inspiration & New Items
To stay ahead of the curve, there may be an effective, unconventional technique grocers can use: look at what’s trending on social media and in industry publications. For example, if you did a simple search of “Halo Top” on Twitter last year you would have seen a number of likes and retweets around this product after its initial launch and could have added it early to your KVI list. We know it’s not the most traditional method to keep up with KVIs (POS & Syndicated Data), but it’s a low-cost, time-saving method that gets a product on your radar ahead of time. Additionally IRI and Nielsen post new and innovative product awards, which are great to cross reference.
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