Many businesses hit a “make-it or break-it” milestone, a time when they must reinvent themselves to stay on top.

2018 marked a turning point for Peloton, the now ubiquitous in-home fitness brand. In that one year, their business model shifted dramatically; it became less about the bike and more about the content. And, it was no longer just a workout, but a community for like-minded people to gather, connect, and yes, burn a calorie or two.

The brand became synonymous with premium content, expert instructors (with rock star-like status!), and a large and fast-growing customer base. So, how does a brand become so popular? So much a part of the zeitgeist that it’s been spoofed not once, but twice, by Saturday Night Live (SNL).

While the pandemic has certainly helped drive bike (and tread) sales, the rise in popularity started long before we were sent home.

What Peloton did is this: it tapped into a latent and growing market need; gyms were intimidating, often an inconvenient distance away, and not very accessible. Peloton, on the other hand, made customers feel like they were worth it, regardless of age, gender, ethnicity, or fitness level. The company married exercise with entertainment and unexpected surprises, including signature workouts (All for One, Artists’ Series, an ESPN televised All Star Ride, to name a handful). But more than that, they held a strong belief system that helped the company not simply grow, but also rise above their category to own the fitness market.

While I don’t fully know their internal guiding principles, I do see these five qualities shine through in everything they do:

1. Innovation. This is a company that doesn’t shy away from new mediums/platforms (tread, digital, mobile), new signature experiences, or new workouts that have nothing to do with the bike, which is still their bread and butter. Now, you can do barre, yoga, and strength — all of which are gaining in popularity.

2. Risk-taking. Peloton is not afraid to fail and they move quickly. Not all their new content becomes successful, and they’ve faced a legal battle over music rights that resulted in a purging of a portion of their content library. But they continue to pump out new material, offer music-themed and live DJ rides, and have created signature experiences across all mediums with high profile artists like Beyoncé that drive usage.

3. Listening. Peloton listens with hyper-focus to their customers. And they get a lot of feedback — through instructors, on social, via official channels. As an example, Peloton began offering more plus-sized apparel after female members complained about a lack of branded gear in larger sizes.

4. Leaning in, not away from cultural touchstones. You only have to look at Tunde Oyeneyin’s Speak Up ride from last July to recognize Peloton’s commitment to taking a stand. Or their partnership with Shonda Rhimes on the “Year of Yes,” to start 2021 fresh and take ownership of our own narrative.

5. Driven by Data. Listening is valuable; data is gold. And Peloton has a ton of it. This is a company that measures everything, and I mean everything. The data goes far beyond the number of connected devices, members, or workouts completed. The company is maniacal about analyzing data to improve the experience. And about personalization, serving up the content, formats, and instructors designed just for you — even though you’re one of 4.4M members. And if you’re lucky, on a milestone ride or your birthday, you might get a shout-out from an instructor LIVE, something that most Peloton fanatics hope for.

So, yes, this post has been all about Peloton, and how they are transforming the fitness industry — but I could argue that these are qualities that could help transform just about any business. First, identify your core mission, and then apply those principles in its service. Here’s an example:

At my company, Skillsoft, we want to create meaningful learning experiences at the individual level designed to help people become better versions of themselves. So, we must be innovators, both in the content we create and the ways we deliver it. And that means taking risks. We are bold and nimble, so we can try new things and shift gears when we need to. We are listening to our customers, so we can act quickly when they have a need — like last summer when we developed a DEI program within a matter of weeks. More recently, we’ve created assets to help organizations and individuals address the Pink Pandemic and its adverse effects on working women. Those are just two examples of our organization taking a stand about the things that matter most. We’ve also launched our new online community, a forum for sharing, growth, and innovation. And, finally, we are insatiable when it comes to obtaining and leveraging data because we know that data is essential to helping us shape ever more relevant learning experiences.

Regardless of the business you’re in, I encourage you to explore these five principles — innovation, risk-taking, listening, leaning-in, and driven by data. I’ll wager they’re as central to your business as they are to mine. And to Peloton.Michelle Boockoff-Bajdek

Chief Marketing Officer at SkillsoftFollow

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