In this episode of the GSD Show, Roger Martin, the CEO of RockBox Fitness, a popular fitness franchise that offers high intensity interval training classes, talked about his experience in the fitness franchise space.
He emphasized his understanding of leadership, sales, and marketing, which contributed to the growth of RockBox. The studio, founded in 2017, combines kickboxing, strength training, and cardio exercises in its classes, creating a challenging and immersive experience for members.
Metrics to Track For Maximum Growth
RockBox’s culture and community are some of the factors that have contributed to its success. According to Roger, generating leads, bookings, and referrals are essential for franchisees’ success in the fitness industry. RockBox aims to generate a certain number of leads per month through digital paid media, B2B outreach, and referrals. Franchisees are expected to book at least 65% of all leads and get 50% of those leads to show up. Asking for a credit card on file has helped increase the show-up rate to about 80%. RockBox aims to close 60% of its leads, a benchmark that the network is yet to achieve.
Roger stressed that the mix of memberships sold is also crucial. RockBox aims for a 70-30 mix of unlimited and twice-a-week memberships, respectively. The studio also looks at the length of stay of members, and franchisees are expected to maintain a certain retention rate. Understanding the numbers is key to running a successful fitness studio franchise, according to Roger.
The studio owners we work with know their numbers and track their KPIs. Learn more about the 360+ program and how you can streamline your KPIs and always have sight on your numbers. What get’s measured, gets improved!
During the episode, Roger also shared some insights on effective leadership, highlighting the importance of creating a vision for the team, leading by example, and building a culture of accountability. He also touched on the significance of sales and marketing in the fitness industry, pointing out that a gym with the best equipment or classes may not be successful if it lacks effective sales and marketing strategies.
“What I’ve been able to translate and teach to our franchisees and their staff is, it’s still asking the why and then the why behind the why.”
Highest price VS lowest price memberships
Roger shares insights on the benefits of pricing in marketing and advertising. Roger believes that there is no benefit to being the second highest or second lowest-priced product in a market. Instead, he recommends being the highest-priced product, as there is an innate perceived value associated with being the most expensive option. This perception is due to the reptilian brain, which makes people think that if they have to pay more for something, it must be worth more.
Roger gives the example of Planet Fitness, which prices at the very bottom of the market and, therefore, attracts people who want to price shop and may not be serious about their fitness. They may go to the gym, but it’s only $10, so who cares. In contrast, Roger believes that a fitness studio should aim to price at $199, $209, or $249, as it sends a message that the product is worth more. However, to justify this price point, the studio must stack value by offering additional services such as nutrition, accountability coaching, and a free challenge that is very structured and takes members through their first six weeks.
Roger argues that dropping the price to get a new member to join would instantly tell them that the studio is not worth the full price. Instead, the studio should focus on what the outcome is worth to the member. If the member feels that they can get to their goal without the studio’s help, they should do that. However, if the member believes that the studio can help them get there faster, easier, and with fewer injuries, they should make that decision. The studio should talk about the value and not drop the price, as it lowers the value of the member’s goal as well.
Roger highlights that pricing is an essential part of marketing, and it is not just about paid ads and social media posts. Price is one of the four Ps of marketing, and a lot of thought should go into it. Roger believes that novice business owners and marketers think that people will pay for a product just because it is available, and they do not consider the psychology of pricing. Pricing is usually done in a logical manner, but Roger recommends considering the psychology of pricing to get the most out of it.
Marketing Strategies That Generate Leads
Mike and Roger talked about the importance of creative advertising and how it can help businesses stand out in their respective industries. They discussed how many small businesses tend to hire lead generation companies to run their marketing campaigns, but in reality, what they need is a company to help them get their ads out to the right demographic. Roger emphasized the importance of creating ads that are aimed at specific demographics and how it can increase the number of leads a business generates.
Mike gave an example of how he was able to decrease the cost of demos for Loud Rumor by creating attorney ads that resonated with their target audience. He emphasized that humor and creativity can go a long way in helping businesses stand out and generate leads.
They discussed the importance of creating characters and using humor to make ads more engaging. They highlighted that the fitness industry is one that is easy to create engaging ads for because people are generally interested in improving their fitness levels. Roger expressed his admiration for companies that have managed to make advertising in typically dull industries fun and interesting.
Leadership in the Fitness Industry
Roger talks about the importance of leadership and how he has embraced leading young talent who want to learn and improve. He stresses that the world needs more leaders, and being genuine and authentic is crucial in leadership. He says that leaders do not have to be perfect, but they must be authentic, and when they make a mistake, they should take responsibility and make the necessary corrections. He advises aspiring leaders to be authentic and to lead with humility, as this inspires people to take accountability for their own mistakes and become leaders themselves.
Roger also stresses the importance of being present and giving full attention to those seeking help or guidance. He acknowledges that his fast-paced work environment makes it difficult to give his full attention, but he has been purposeful in turning his monitor and laptop aside when someone comes into his office, so that he can be fully present with them. He attributes this practice to parenthood, where he learned to give his children his full attention when they needed it.
Roger has seen massive success with the RockBox Franchise and we can’t wait to have him back on The GSD Show.
Loud Rumor works with some of the RockBox franchisees in our 360+ program. If you’d like to learn more, jump on a free strategy call by clicking the link below!