Peloton is an Influencer Success Story
As weird and dystopian as it sounds to describe anything as a “Corona success story” that is exactly what Fortune.com did in a recent article about Peloton. Peloton is a fitness product company that sells treadmills and standing bikes that correspond to a monthly subscription fitness app. The app which includes social media famous fitness instructors can be used with or without their products. During Corona lockdowns when many moved their fitness regimes away from the gyms and into their homes Peloton’s sales and stocks sored. To date their stock is up over 80% this year.
Albeit it is pretty easy to deduce that insurance companies and billionaires massively profiting off a pandemic is wrong -looking at you Jeff Bezos. Is it wrong for an at home fitness company to be in the right place at the right time? Not really.
But the Key to Peloton’s success is not simply based off of Corona Virus. The real key to their success lies in harnessing the power of influencer marketing in the health and fitness sector in a genuine way.
First let’s take this back to 2012 when Adobe products like photoshop and illustrator switched from a one time purchase to a subscription model. In essence changing their business model from a software to SaaS (Software as a Service). Since then it has paved the way for many other softwares to pivot as well from language learning originals like Rosetta Stone and now to health and fitness apps. For many businesses the smaller monthly payments add up to more return on investment than a one time purchase.
So what is it that has been making users across the globe get into their fitness app? The classes are run by fitness influencers. It was smaller influencers who helped the brand reach its initial success but from May 2019 they pivoted to influencers who already had 500K followers or more as reported by Tribe Dynamics.
While many brands simply want to pay influencers for a sponsored post Peloton’s success was actually giving them jobs. It is the mutually beneficial transaction that is great for influencers and great for the brand. In 2020 influencers do not work for exposure and many of their followers can see through a sponsored post. Brands need to find new ways of engaging with influencers to perform influencer marketing. That means finding the right fit, fit influencers and a great idea.
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