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Decreased Sales

Plateaued Subscriptions

High Price Point

Research behind "#GetYourStreakOn" digital campaign

Top 3 Challenges

Campaign Purpose

Who are they?







Primary: To increase customer LTV by decreasing app churn to 22% within a year. Secondary: To increase paid app subscribers by 20% within a year.




purchase products due to influencers


share cost of living concern


users are over 35 years old


pay more for wellness

What are people talking about?

Media Trends

Target Market

Did you know?

Wellness Pragmatists

Value Hackers

Social Media Influencers

Against the industry standard, the Peloton app has performed very well at a churn rate of only 32.5% in Q3 FY'22 and 27.5% in Q3 FY'23. It thus clearly outperforms its competitors who have a mere 9% 28-day retention rate. Additionally, while app subscribers have seemingly pleatued, increasing a mere 3% Y/Y between '22 and '23, we are optimistic about renewed growth given the broadening of Peloton's consumer base due to its expansion beyond the cycling niche.

Challenge: Facing the headwinds of diminished demand and fewer sales, Peloton experiences a decline in revenue from its product offerings. The fluctuating market dynamics, coupled with changing consumer preferences, underscore the imperative for strategic recalibration to revive product revenue streams and adapt to the evolving landscape

Challenge: Peloton faces the challenge of plateaued subscription growth post-pandemic. Market saturation and changing consumer behaviour contribute to the need for innovative strategies to reignite the rise in subscriber numbers.

Challenge: Peloton grapples with a history of hefty investments, including a $420 million acquisition of Precor and a $400 million factory in Ohio, later abandoned. Coupled with eye-watering marketing expenses, constituting 23% and 33% of revenue in 2021 and 2020, respectively, Peloton faces the challenge of reining in excessive spending.

In 2023, the vast majority of Peloton's revenue was generated in the United States and Canada, accounting for over 2.59 billion U.S. dollars. In contrast, Peloton's international revenue stood at just over 209 million U.S. dollars in 2023.

74% of consumers were concerned about the rising cost of everyday items in 2023 as wages lag behind rising prices driven by inflation. While inflation is easing, prices remain high, prompting consumers to adopt long-term budgeting habits to manage spending effectively. This shift requires businesses to implement strategies to provide incentives to retain their customers through “value for money” hacks. Peloton’s new digital campaign would lean into this as higher performance on the streak results in rewards consisting of discounts for selected products e.g. in their apparel line, accessories, next month of subscription half price.

Cost-of-living imapct on consumer behaviours

Additionally, in the North American market, fitness is not an item that consumers have reduced their spending on, highlighting its importance.

  • Approximately 70% of Peloton's user base consists of individuals aged 35 and above
  • Merely 2% of users fall within the age bracket of 18 to 24, while 11% are aged over 55
  • In 2021, females constituted 49% of Peloton users, while males accounted for 43%. Among Peloton bike users, 30% fall between the ages of 45 and 64

Peloton User Demographics

The wellness era

85% of consumers would be willing to pay more for wellness products with proven efficacy or benefits. Consumers are adopting a pragmatic approach to their mental and physical health in 2024, shifting away from time-consuming multi-step regimes that require major commitment, seeking instead more practical options that deliver proven results that can seamlessly be integrated into consumers’ daily routines. With mental health being in the spotlight, consumers are drawn to efficient and effective products and embrace the latest scientific and technological advancements to achieve their desired outcomes. They do not expect radical changes overnight and are, in fact, setting realistic and attainable goals, but do want to see visible improvements, however they choose to do it. The new digital campaign would consist of various activities tapping into the research behind the impact of a consistent fitness lifestyle and all of the aspects of life it benefits in such as improved mood and physique, mental clarity and better sleeping patterns.

Nearly half of Gen Z and millennials follow influencers who regularly promote products or brands (44%) and are likely to purchase a product recommended by influencers (45%). For approximately half of these cohorts, influencer recommendations are more engaging than regular ads. Gen Z lean towards micro and nano influencers, while celebrity-driven content appeals to millennials.

"The influencer effect"

Consumers are seeking to improve their health and wellbeing by taking a break from the mundane. According to Euromonitor’s Voice of the Consumer: Health and Nutrition Survey, 39% of Gen Z individuals and 36% of Millennials experience daily stress and anxiety.