Peloton's home stationary bikes, treadmills and subscription fitness class business has boomed during the pandemic as people look for safe exercise options. The company took advantage of this fortuitous opportunity to meet user needs at the beginning of the pandemic, when people

Peloton's home stationary bikes, treadmills and subscription fitness class business has boomed during the epidemic as people look for safe exercise options.

The company took advantage of this fortuitous opportunity to meet the needs of users at the beginning of the epidemic, when people were quarantined at home and therefore tried to establish new routines through stay-at-home exercises.

In early September last year, Peloton announced its first profitable quarter: according to the company’s letter to shareholders, revenue increased 172% year-on-year to US$607 million (approximately 3.936 billion yuan), and subscriptions more than doubled. , reaching about 1.1 million people.

Peloton continues to build on its success. In February this year, the company announced that its revenue increased by 128% year-on-year to US$1.06 billion (approximately 6.874 billion yuan). This was the company’s first revenue to reach US$1 billion (approximately 6.485 billion yuan). quarter. What's more, Peloton has more than 4.4 million users on its platform.

But to understand why Peloton joins the ranks of a brand with cult status among users (think Apple and SoulCycle), Business Insider spoke with experts who analyzed Peloton's high user satisfaction rate and what it means to User understanding.

A survey by consumer research platform CivicScience found that only 2% of 3,298 Americans are Peloton users, but if you ask these 2% how they feel about Peloton’s service, they are likely to be Big thumbs up for this brand. A survey of hundreds of users by investment firm Wedbush found that 69% of Peloton bike users were "very satisfied" with their experience, while another 28% were "satisfied" for a total of 97%. "What's more, most Peloton users say the product works. They lose weight, have more energy and are happier," said Wedbush analyst James Hardiman, who co-authored the survey report with

"If you spend money on a lot of things that don't make you feel happier, and very few of those things make you feel healthier, Peloton seems to do both."

Peloton executives say this is just the beginning. According to a recent shareholder letter, they expect subscriptions to grow another 90% this fiscal year and revenue to nearly double again.

One of Peloton’s strategies for improving user satisfaction is to understand what users like, what they don’t like, and what they would like to see in the future. Peloton does this by incorporating user research into its platform and learning from those metrics, said Andrea Wroble, senior research analyst covering health and wellness at market research firm Mintel. "For example, Peloton tracks popular classes, how long people exercise each day, what music their users are listening to, and what might be missing in the overall experience," Roble said.

"They use that information," she added. "Peloton has also built a strong sense of community among its users," Roble said. Live courses tap into the competitive spirit of users by comparing participant statistics, while pre-recorded courses provide a similar experience for those who want to take the same course at different times.

Customers can also connect with strangers by high-fiving each other in class, or personalize their profiles by adding tags like "Black Lives Matter." When users aren't working out, they can wear Peloton-branded fitness gear, follow trainers with active social media accounts, such as lead trainer Robin Arzon, who has more than 500,000 followers on Instagram, and Listen to your favorite course playlist on Spotify.

Ultimately, Roble said the brand thrives on its adaptability.When consumers complain that prices are too high, the company will cut prices to attract customers. The original Peloton bike price was US$2,245 (approximately 14,500 yuan), and the company recently reduced the price by US$350 (approximately 2,269.71 yuan).

It also added a high-end service called Bike Plus (priced at $2,495 (approximately 16,100 yuan)), which has a new feature that automatically changes the resistance according to the teacher's instructions, and a newer version that can be used for floor exercises. Big screen. Peloton also plans to launch a cheaper version of its $4,295 (approximately 27,800 yuan) treadmill next year.

Peloton can strategically leverage its respected status to grow by mining its network for more feedback. Hardiman said this includes maintaining strategies that are already working, such as listening to users, innovating based on feedback, and keeping users engaged.

He added that the company also continues to offer themed rides, new classes and new challenges to keep users engaged.

Hardman said: "I don't think any of their competitors have the ability to do anything similar."

(Canadian and American financial special articles, plagiarism must be investigated)

#Peloton#, #FITNESS#, #Corporate Governance#

Author: SP644

Editor: Jax