The so-called KVI (Key Value Items) and KVC (Key Value Categories) are those products and categories that stand out within your online store by generating more interest among users and/or have high conversion factor. Knowing what they are seems, a priori, an unassuming task, however, optimising the commercial strategy to increase sales is sometimes not as simple as it may initially seem.
A dynamic pricing strategy can help an online store’s leading products to multiply their conversion and, consequently, the profit generated, while always maintaining each products profit margins.
When optimising the prices of your best-selling products, there are three steps you should not skip:
Identify which are those products that are going to start being recognised as VIP.
Select the area of action on which to optimise: valuing the purchase in accordance to the user, modify the price according to region...
Establish the percentages that will allow the fluctuation of prices within your dynamic pricing strategy.
This last step will be what defines your pricing intelligence strategy. In this respect, the use of a specialised price management tool will be key to making each and every one of the proposed modifications effective.
Price changes in your star products can be defined by tracking competitor prices, specific offers based on demand and many other factors. However, it is always essential to have reliable and accurate data about what happens in your market to be able to adapt the prices of your products without fear of incurring losses.
How to select your star products
The pillar to making this type of pricing optimisation is to correctly recognise the products to which it will be applied. In this sense, you can find several types of key products in your online store:
Those that sell the most because they have a high demand.
Products that have low competition and are well positioned.
Products that have the capacity to increase the value of your average sale, thanks to cross-selling actions.
Products that dictate trends among buyers because they either draw attention to themselves or open the door to the purchase of other items.
Generating a new pricing strategy for this group of products will allow you to attract more users, improve the conversion rate and beat your competition.
On the other hand, it is important that the flagship products of your eCommerce are not confused with products that experience peak sales for other reasons. If this is due to the lack of stock by your competitors, or responds to a specific unusual demand, you should consider pricing optimisation outside the values assigned to these KVI.
Tips to keep your pricing strategy optimized
Once these actions have been carried out to enhance your key products, it is important that the strategy is subjected to its own revision to maintain optimisation at all times. The first recommendation? Check every so often (weekly or monthly, depending on the needs of your eCommerce) what are those KVI’s in your online store. These may vary by season, so it is convenient that they are reviewed and updated to always maximise sale of those products.
In addition, it is also convenient to take into account what activities the user carries out, with regard to the product, before purchasing. So, keep focus on everything that can affect the sale of this type of item, from the online product details to the way you present it in the catalogue, the home-page of the online store, or the categories to which they may belong.
A differentiated pricing strategy will bring out the best of each product in your online catalogue. Keep it updated and, above all, get as close as possible to your audience to know what they demand to boost your sales.