ARCH Marketing & Sales Discussion May 2014

ARCH CG097III Kickstart Green/Black-White

ARCH CG097III Kickstart Green/Black-White

Typically I post all ARCH business articles on the ARCH website. However, I’ve launched a new shoe and the site is pretty much dedicated to the promotion of the new shoe, so I am writing this article here and I will share it on the ARCH Facebook page.

I ran a Kickstarter in February of 2014. It funded in March and I produced the shoe and got it ready to sell by May 1st. That’s a three month turnaround. Only about 40 of the shoes made were dedicated to the backers. (A backer is a person that believed in your product on Kickstarter and donated money to the company for a reward. My rewards were T-shirts or shoes, or both) I made 107 pair of shoes with the funds raised. There were 9 pair of shoes that were damaged, possibly more once I begin shipping them out. But this total left me with 58 pair of shoes to sell. Since May 12th, I have sold 3 pair of shoes. This is not a very good amount. I was hoping that the Kickstarter would build a bit of brand awareness and help me to reach more customers, but it seems that this is not the case. On May 4th I knew I had to acquire customers so I began a Facebook campaign and I began an Amazon campaign. Before I get into those numbers and pics, I want to share my thanks to one of my backers Mr. Ijore, who brought to my attention that my site was not coming up in Google searches.

After almost 5 years of having ARCH on the web, one of my Kickstarter backers (Mr. Ijore) let me know that my site couldn’t be found by typing in ARCH Shoes or any number of random searches. I didn’t realize this because when I search Google uses my Facebook settings and I get information in the sidebar or with Bing I get ARCH information. I began working on my SEO yesterday morning and I discovered that I hadn’t submitted my website(s) to Webmaster Tools. I’m telling you all this because it is critical to have your site listed with Webmaster tools. I had to create a verification, upload to the public_html folder of ARCH and then verify it and now my site is searchable. That doesn’t mean it will show up at the top, but at least I’ve fixed a problem that has hindered my search results

More info for those of you operating your own sites… If you are utilizing WP for your sites. You can install a plugin for sitemaps and the program will generate a sitemap that can then be installed into the crawl area of webmaster tools and this will deliver the content to Google for it to be indexed. 

On to Facebook Ads: Instead of writing a long explanation of how well the Facebook Ads did or didn’t work, I will post this picture and then summarize. The 3 sales I made on the ARCH Shoes since May 4th were to a former athlete I coached and to one person in Memphis and I’m not sure of how I acquired that customer. It may have been due to Facebook Ads or Amazon Ads. I’m not sure. However, if you look at this picture you will notice that I had 84 clicks through to my website and I paid 20.99. While ARCH does not make any money right now, I have to maintain some type of presence in social media. I started an Instagram page which I will begin using shortly, but at 21.00 dollars it seems reasonable for me to continue running Facebook Ads. What do you think? Here is the picture.

Facebook Ad May 4th - 10th (Click to view)

Facebook Ad May 4th – 10th (Click to view)

Amazon Ads Information (May 1st-May 12 2014)

An Amazon Ad is a part of owning a store on the Amazon Marketplace. It grants me a unique opportunity to have a small brand and a large distribution network. The difficulty lies in being featured alongside Nike, Adidas, Reebok and larger brands and pulling customers away from those brands to ARCH. In order to gain interest I’ve found that running an Amazon Ad allows me to use Keywords that will give me an opportunity to be shown when a person uses any number of words to search for shoes. The problem lies in bidding correctly. I have to assume that I underbid this past week. Due to these numbers:

Total Number of Ads: 19 (I have an ad for each size in inventory and color)

Impressions: 16,666 (This is the number of times someone actually saw the ad from the 1st to 12th)

Clicks: 19  (This is pretty shitty, sorry about the language, but you need to realize how bad this is. Why is it so bad? I think my CPC is the reason. I may also have to retake the pictures or any number of things, but right now to only have 19 Clicks is terrible.)

CTR: 0.11% (This is the click through rate, see above)

CPC: .05 (This is the cost that I’m bidding at to be seen on Amazon and where ever they advertise, it’s obviously not enough)

Total Spend: .27 (So if I only spent 27 cents, this is obviously the problem. Right?)

Result: No shoes sold through Amazon Ads.

Solution: I’m increasing my cost per click to .10 cents.

What does this report tell you? I’ve had one customer that I didn’t know purchase a pair of ARCH Running shoes. Since the shoes are paid for, acquiring this customer is my only cost. So far I’ve only spent 22.00 dollars and that garnered me a sale of 69.99. 15% goes to Amazon and after shipping I made 59.49. Shipping was 6.00 bucks. This is a solid profit point based on Kickstarter as the financing arm, but the ultimate goal is to utilize Kickstarter as a springboard, not a crutch. I have to figure out my costs for acquiring customers. If it costs 22.00 dollars, then if the shoe was purchased by me it would have been a breakeven sell. Something to think about. If you have any questions about this, don’t hesitate to write and ask.

Stay Motivated

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