Episode 89: Franchising, Retention and Subscriptions with Rob Scott, Founder of Legends Boxing
On this week’s episode of Subscriptions: Scaled, we chat with Rob Scott, Founder of Legends Boxing, about franchising, retention and subscriptions.
We discuss everything from membership models to marketing methods, the effects of the pandemic and more.
Keep reading to learn more about the episode.
Legends Boxing
Legends Boxing aims to provide boxing fitness classes in a fun, fresh and motivating way. Every day, brand-new, 1-hour workouts are made available to customers. These are created and led by certified coaches.
The franchise now has 19 open locations and is entirely membership driven. It has several different membership options available to incentivize clients.
Membership Models and Incentives
One unique option offered by Legends Boxing is its popular legacy membership. With this membership, customers pay a monthly fee, and with each passing year, the annual fee drops in price.
Legends Boxing focuses on acquisition and retention, and the legacy membership model is part of this approach. For example, members that have been with the company for six years pay 50% less than customers who just started this month.
Rob and his team at Legends Boxing also focus on tribe and culture to incentivize members to stay signed up. They’ve built a culture and environment that inspires and encourages people to work out. Because of this, their retention level is higher than the average boutique fitness center.
Legends Boxing spends around $70 to acquire a client but almost nothing to retain one. People are typically so content with the service and culture that they want to stay on. Not only does retaining customers not cost anything, but happy members are also great marketers for the company.
Marketing and Legends Boxing Members
Legends Boxing uses social media marketing to gain customers. When people drive past a Legends Boxing building, they may be falsely led to believe that the classes are just about people punching each other. Therefore, the company spends a lot of energy, time, and effort in softening that image. On social media, people can look up the brand and gain a better understanding of what it means to be a member.
Surprisingly, a significant portion of Legends Boxing memberships are held by soccer moms and business professionals. Members are typically people who want an alternative way to work out and don’t necessarily feel comfortable exercising at the big boxing gyms.
Legends Boxing members aren’t usually into powerlifting and often require a coach, mentor and/or motivator. With their online presence, the brand tries hard to show that the typical customer can just as easily be a busy mum dropping her kids off at school before taking her nine o'clock class.
A lot of the company’s social media marketing is produced by the team at the Legends Boxing headquarters. The company uses all of the popular social media channels.
Some social media marketing is implemented by individual franchise owners with strict rules and conditions regarding what can and cannot be branded. Typically, the further you get away from headquarters, the harder it is to control how the social media channels are run for each franchise.
Currently, Legends Boxing focuses on YouTube shorts as they create a lot of value. They often provide a lot of free content, such as advice on how to throw a proper punch.
Most of the marketing content is centered around what it’s like to be in a Legends Boxing gym or workouts in general. The goal is to encourage people. To get them to feel welcome and motivated to work out at a boxing gym.
Lessoned Learned
Rob admits that the team at Legends Boxing got a little distracted with growing the franchise in the past.
He explains that the pandemic created a master reset in the fitness industry, with between 30 to 35% of all fitness companies going out of business.
Rob and his team had to learn to scale back. They were once heavy on design and other features that weren’t fundamental to the function and running of the gym. The team has since cut back on those unnecessary extras. Instead, they now focus their efforts on making sure that the buildings used for Legends Boxing are inviting to customers and have a comfortable environment for people to work out in.
Technology
Legends Boxing tried developing its own CRM, but it turned out to be too time-consuming and expensive. The team found it better to use Club Ready, a company which provides clubs with a variety of technological solutions, even if they couldn’t afford all of them.
Club Ready is a popular fitness and wellness club management system. While they can’t fix everyone’s problems, they do an excellent job for the most part.
Legends Boxing is planning to introduce some new technology, building software and gamification related to boxing gloves. They’re planning to make an announcement within the next six months and hope the new technology will be a game-changer for their business.
The Future of Legends Boxing
For the franchise’s future locations, the team plans to go smaller. They’ve re-engineered their layouts. The pandemic forced them to look closely at how the company functions, they know that their operating costs need to be lower.
When recessions or pandemics hit, they expose your weaknesses. The team at Legends Boxing had to ask critical questions such as, do they really need to be located next to a movie theater and grocery store, or can they do just as well a block away?
They were able to adapt to changes in the market and came up with solutions that allowed them to operate more affordably. In the event of another pandemic or similar situation, they feel far better prepared to deal with the circumstances.
Legends Boxing is currently in a successful, healthy position with enough open locations that are both growing and profitable. They don’t currently need to sell any new franchises, therefore they have the power to be selective in that process.
The focus now is on slow and steady growth, with a plan to open two to three new locations a year.
To reach out to Rob and his team, head to the Legends Boxing website. Rob also posts news and announcements on his personal Instagram account @legendsboxingfounder.
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