Success for long-established industry retailers will require they neutralize existing price vulnerabilities. In order to do so, grocery operators must look beyond supporting their price-value image through known-value items (KVIs) exclusively and leverage detailed basket data to 1) identify KVIs for thousands of individual households, 2) designate them as personalized known-value items (PKVIs) and 3) lower prices on these items for an extended period of time.
Making lower-priced PKVIs available will have a strong impact on members' price perceptions of the store and will help cement a positive price-value image. However, there are four essentials that grocers must focus on in order to be successful with personalized pricing. Read what they are at Progressive Grocer.