KVI - Key Value Items

Definition

KVIs (Key Value Items) are the products that have the greatest impact on customers’ overall perception of a retailer’s pricing

. These are the items that consumers easily compare across retailers and that directly influence price image: milk, baguettes, eggs, smartphones, etc.

. Being competitive on KVIs is essential for building a reputation for attractive prices.

Why it's important

• Building a retailer’s price image: Customers judge a retailer’s competitiveness based on a handful of benchmark products, not on the entire product range.

• Focusing competitive efforts: rather than monitoring thousands of prices, retailers concentrate their market monitoring and price adjustments on key performance indicators (KPIs).

• Maximizing profitability: by taking a proactive approach to key performance indicators (KPIs) and maintaining margins on other products, we strike a balance between pricing and profitability.

A concrete example

A grocery chain identifies 150 KVI items out of 10,000 SKUs (milk, coffee, water, bread, bananas, chicken, etc.)

It decides to match the prices of the cheapest competitor for these products, even if it means reducing its unit margin

For the remaining 9,850 SKUs, it maintains slightly higher prices to compensate

Result: Customers perceive the retailer as “cheaper,” while the average shopping basket remains profitable

This strategy relies on the fact that few customers actually compare all prices.

How to identify them

KVI are selected based on several criteria:

• Frequency of purchase: items purchased frequently (milk, bread, eggs)

• Comparability: standard products that are easy to compare across retailers (national brands, fresh produce)

• Volumes: Products That Drive Revenue

• Highlights: products whose prices are easily remembered by customers (€1 baguettes, gasoline)

This is often supplemented by customer surveys to validate the list of products perceived as representative of the price range.

Common Mistakes

• Too many SKUs: spreading your efforts across 500 SKUs is like trying to monitor your entire product line. Limit yourself to 100–200 key SKUs.

• Key performance indicators (KPIs) that are stuck in the past: consumer habits are changing. KPIs must be reviewed regularly (at least once a year).

• Ignoring competitors' KPIs: Your competitors also have their own KPIs. If your prices are higher than theirs, you’ll lose customers even if your own KPIs are competitive.

Learn more

• Research & Data: Competitor price tracking to identify and monitor your KPIs against the competition in real time.

• Solutions: Promotion management to drive your key performance indicators (KPIs) for promotions and maximize the impact of price positioning.

• Tip: Strategic pricing to define your list of KPIs and your pricing policy.

• Resources: Check out our case studies to see how other retailers have optimized their KPIs.

Frequently Asked Questions

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Anticipating common pricing strategy mistakes —such as blindly copying competitors, lacking safeguards, and conducting uncontrolled tests—helps prevent margin losses starting in the first year.