Peloton | Part 1: Not Just a Bike
As the pandemic hit in March, all my regular routines were disrupted, I had no access to the gym or basketball. Along with the anxiety of potentially catching a then-unknown disease, I was also worried about my physical and mental health without my regular workout schedule. By the time I thought of buying weights online, the supply had dried up. The only product more difficult to order was toilet paper! Defeated, I begrudgingly downloaded and sampled various bodyweight workout apps. I eventually realized that while I was able to somewhat get a workout in utilizing my bodyweight at home, the interactive/social element of the gym was missing and I was lacking motivation to recommit to a new fitness regime. I heard about the Peloton app from a friend and I immediately was suspicious. My first thoughts were, "isn’t that the home exercise bike company targeting rich suburban women that had that strange ad at Christmas”. Given that I am not rich, a woman or living in the suburbs, how is this product for me? At this point I had already gained 5 pounds and it was barely a month into the pandemic. Given my history of growing up a fat kid and the years of effort it took to get me in shape, I realized that desperate times called for desperate measures; I was willing to try anything. What a great decision it turned out to be.
I believe that the Peloton app is the best workout product on the market today, with or without the pandemic. As I became a power user of the app, I found myself observing it with a Product lens. I started analyzing why it was so valuable to my cohort relative to its competitors and how it optimized my customer journey. I then began thinking about what features I would change and which ones I would add to further drive value.
I first started with thoughts about Pelotons’ value proposition, which I have produced below. For reference I am using Ash Maurya’s Lean Canvas framework
Peloton has by far the best value proposition in the fitness space. The big customer needs in the industry for all cohorts are experience, variety, convenience and cost. For each of these needs, Peloton either matches or betters its competitors. It can match the gym in interactive/social experience with its robust community and instructor interactions, with the added convenience of an app. It has more variety than any other product on the market for a fraction of the cost of a gym membership or a personal trainer. There is tremendous growth opportunity moving forward with merchandising and tie ups with influencers to further augment offerings (see Beyoncé).
Peloton augments this strong content offering and value proposition with strong UX optimization which shines during the customer journey. Next, I will outline Peloton’s customer journey which will further show why they have not only acquired users at such a strong rate but also have engaged them, driving an impressive retention rate of 93%.
