Leveraging Engage3’s Price Image Management platform Vitacost, a Kroger E-Commerce division, took a more strategic approach to pricing:
- Identified the items that drove their Price Image
- Targeted spending on items that made the biggest impact.
- Maximized margin opportunities on items that had a less emotional shopper response.
Following implementation, as measured in a test-control environment, Vitacost improved their Price Image by 1.8% by winning on the items that mattered most to their shoppers, grew overall revenue +6.2% by identifying non-linear price responsiveness and hitting key price thresholds and increased margin dollars by 3.2% by strategically increasing prices on background items.