Peloton Epitomizes Brand Loyalty
Members are not paying for the bike or workout classes. They’re paying to be a part of a community.
Peloton by The Numbers
Peloton is an exercise equipment and media company best known for its at-home bike with over 6 million members. They offer at-home gym equipment, an exercise app and produce thousands of workout videos that customers can stream through Peloton products or the Peloton app. The exercise giant also offers accessories such as shoes, weights, headphones, a heart rate monitor, bike mats, resistance bands, and apparel. While many Peloton members love their gym equipment, nearly one million of its members are digital-only subscribers. The pandemic was a catalyst for Peloton’s success, amassing 4 million of its 6 million members from March 2020 to June 2021. Peloton is proof that building a passionate community is incredibly valuable.
A Sense of Community
The majority of Peloton’s members are not the super-wealthy but the middle class. It would be way cheaper to buy a reasonably priced at-home bike, get a subscription to Apple fitness or watch free workout videos on YouTube, and attach a device mount to the bike. Still, Peloton members are willing to pay upwards of $1,500 for the bike plus $39 monthly for access to all workout media content. While the primary selling point of Peloton is the access to enthusiastic instructors and video content, members are not paying for the bike or workout classes. They’re paying to be a part of a community.
Peloton has built a community centered around people who enjoy exercising at home but want a gym atmosphere. The consensus among members is that the instructors are inclusive, positive, and genuine making everyone feel part of something. They’ve created brand loyalty that only a handful of companies have attained, like Apple, Airbnb, Lego, and Red Bull. Peloton has plenty of competition, even from trillion-dollar companies like Meta and Apple. However, that competition is irrelevant since people are willing to pay high prices to be part of the Peloton community, not the exercise amenities and features.
At-home Fitness is Here to Stay
Peloton will continue to innovate and improve. They’re looking to build an immersive workout experience, and one of the best ways to do that is with new extended reality (XR) technologies like AR and VR. Peloton has acquired Atlas Wearables and Otari Studios.
Atlas Wearables is a small company marketed as “the world’s most powerful training and recovery tool.” They created a technology called “Exercise ID” that enables their smartwatch to automatically detect what exercise is being performed and count the reps for the consumer. Otari Studio developed a workout mat with an attached HD screen with a detachable arm holding an AI camera that captures and analyzes form for each activity. The AI camera could be used to provide feedback on form in the workout instructor’s voice.
It’s only a matter of time before Peloton implements these technologies into their product line. In several years, it can combine these products with extended realities to create the ultimate immersive workout experience.