KVIs: how to increase your eCommerce sales

KVIs: how to increase your eCommerce sales

06/08/2021 - Price optimization

Your KVIs are the key products in your eCommerce that allow you to improve the overall sales in your online store. How? By using them as a vehicle to attract users through a price optimisation strategy and presenting them with related products from the rest of your catalogue. But there is more to this strategy than you might think at first glance. Let’s see how you can use the KVIs in your eCommerce to sell more in your business.

Identifying and using KVIs in your eCommerce

KVIs stand for key value items, that is, those products that stand out in your online shop because they’re the most recognised and purchased by your recurring users. This means that they’re those products that the audience relates directly to you.

Identifying these types of products implies knowledge of the total stock in your online store as well as the value of your users’ shopping carts. Thanks to this data, you’ll be able to have first-hand knowledge of what the purchase recurrence is for each of them, as well as which other products they’re closely related to.

In addition, these can change throughout the season, which is why it’s important that you do this analysis seasonally to see how they vary throughout the year. With demand analysis software, you can predict what the KVIs of your eCommerce will be for each stage and update them regularly.

In general, there are 4 types of KVIs in your eCommerce:

  • Perceived value drivers: these are the most popular items in your eCommerce among users.
  • Traffic drivers: those that generate more visits due to their high demand.
  • Basket drivers: the products that are added to the cart most often and allow you to cross-sell easily.
  • Assortment perception drivers: these products allow you to add more options thanks to their great link with the rest of the category that they belong to.

How to make combinations using your KVIs

The main function of KVIs is to lead users to other products in your catalogue. For this, it’s essential to create categories that bring together different product references that can coexist in a natural shopping context.

To create these key product categories (also known as key value categories or KVCs), you should ask yourself the following three questions about every item in your catalogue:

  • How many units have been sold and at what price?
  • What is the number of visits received within your store and based on what kind of search?
  • How many similar products exist in your catalogue and in the market (the competitiveness index)?

With the answers to all of these questions, you’ll be able to form groups around your main KVIs and thus segment your catalogue.

Adapt your pricing strategy based on your KVIs

Your KVIs should be incorporated in your eCommerce’s pricing strategy so that you can optimise your promotional strategy based on the combinations and reinforcement that you want to offer your users. In some cases, you can use them to offer discounts related to the products purchased through your KVIs. In others, you can use them to attract users back with a juicy offer and lead them to make a more complete purchase.

In the case of Reactev, you have a pricing strategy simulator to check the effectiveness of the actions proposed in each category. Thanks to this powerful artificial intelligence software, you’ll be able to make your prediction based on scientific data to ensure the effectiveness of your strategy.

Category: Price optimization

Tags: Cross-selling, ecommerce

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