Carolyn Tisch Blodgett, VP of Brand Marketing at Peloton Cycle, teaches how to utilize customer insights and persona-based marketing to drive revenue and customer loyalty. She shows how to craft unified strategies that integrate both digital marketing and acquisition and brand marketing techniques and goals, and how to open an active dialogue between customer and brand. Presentation by: Carolyn Tisch Blodgett - VP of Brand Marketing, Peloton Cycle

2. The Intersection of Brand & Performance Marketing
February 2017

3. 3
Agenda
1. Peloton Overview
2. Brand Marketing Overview
3. Acquisition Marketing Overview
4. Brand / Acquisition Relationship

4. FROM OUR STUDIO IN NYC
LIVE & ON-DEMAND
PELOTON IS A TECH COMPANY
DISRUPTING THE FITNESS SPACE.
WE BUILT A STATIONARY BIKE THAT ALLOWS YOU TO TAKE
STUDIO CYCLING CLASSES
ANYTIME, ANYWHERE

5. 5
P E L O T O N L A U N C H E D
2014
N P S S C O R E
91
W O R K O U T S T A K E N
5.6M
B I K E S S O L D
80,000+
O N E - Y E A R R E T E N T I O N R A T E
96%
Peloton by the numbers
G L O B A L R I D E R S
285,000

6. 6
Peloton is a completely unique, vertically integrated business that gives you the best
platform and best content, right at your fingertips
Hardware
Software
Media
Retail
Logistics
Entire Tech Stack
Award-winning bike and bike design
Tablet computer, 4x bigger than iPad;
CM founded by team from Foxconn
Client-side SW: Custom Android /
Linux Operating System
Python Cloud Services handling
5K real-time requests per second
4,000 on-demand classes accessible
anytime from the cloud
12 hours of live television
quality video streamed daily
20 retail stores in luxury malls and
high-end locations nationally
Robust inside sales team / operation
complementing ecommerce website
Growing national operation of Peloton
Mercedes Sprinter delivery vans
Peloton employees extending brand
via best-in-class, in-home deliveries

7. Peloton is the most immersive, socially motivating
fitness experience

8. 22 IN. SWEAT-PROOF
HD TOUCHSCREEN
UP TO
14 LIVE CLASSES DAILY
TRACK METRICS
SEE HOW YOU STACK UP
AGAINST OTHERS
IN REAL TIME
IN YOUR HOME
ON YOUR SCHEDULE
4000+ CLASSES ON-DEMAND

9. We are taking the world by storm, with over 80,000 bikes sold in all 50 states & 285,000
global riders

10. Our riders love Peloton…
“ ““Access to live classes from
home? There’s nothing easier.”
- MICHELLE R.
“Not only do you have the best spin bike,
the best instructors in the world, but all
the fellow rider support too!.”
-TRICIA B.
If you’re new to this, I’ve some bad news
for you. It’s addictive. Beyond anything
I’ve done before.
- TRISTAN M.
Initially, I had doubts. But now I can’t
see my life without Peloton. It always
works on my schedule.”
- DEMETRI Y.

11. …And so does the press
“The Peloton is attractive, addictive,
and seriously whips you into shape.”
“Peloton has become a cult favorite,
thanks to its energetic teachers...”
“The Bergdorf's of bike studios”
“Tried. Tested. Trusted. Genius!”“Easily the best indoor workout.”
“The best cardio machine
on the planet.”

12. BRAND MARKETING
OVERVIEW

13. 13
We’re building a brand consumers love from the moment they set eyes on the bike.
Brand Strategy
Consumer
Insights
Build a Foundation
for an Ownable
Brand
Integrated Campaigns
Grassroots
PR
Partnerships
Events
Ambassadors
Drive Awareness and
Consideration Efficiently &
Effectively
Integrated
Campaigns
Feature / Content
Launches
Turn consumers into
brand loyalists
Awareness
Aided Qualified Awareness
Creative Test Scores
(LINK, CTRs)
Site visits
Marketing Channel
Engagements
Brand Health + NPS
Always tracking and optimizing:
Brand Marketing Overview

14. 14
Peloton began with a consumer insight…
PEOPLE WANT TO WANT TO WORK OUT…
“There are feelings partway through rides, where you are in a
good groove and you feel like you can keep going. I feel strong
and empowered.”
- JERI, CONSUMER
“There is a satisfaction in knowing that you have accomplished
something. Post muscle fatigue means results. It shows
commitment.”
KELLY, CONSUMER
HOWEVER…
COMMITTING IS THE HARD PART
”I don’t go to SoulCycle… there’s all these incredibly fit gay
men there that I don’t wanna keep up with, and I don’t want
them to insult me either.”
- KARA, CONSUMER

15. 151
PELOTON’S CONSUMER PROMISE
MAKES YOU WANT TO SHOW UP
15
REASONS TO BELIEVE
An integrated experience
designed to pull you in and
ensure you literally show up.
EMOTIONAL BENEFIT
A transformative experience so
you show up as your full self all
day long.
FUNCTIONAL BENEFIT
Entertainment and
competition to show up at
your best on your terms.

16. ACQUISITION
MARKETING OVERVIEW

17. 17
Acquisition Marketing Overview
The acquisition team’s goal is to build qualified awareness and drive sales at an efficient CAC.
DIRECT TO CONSUMER
WE HAVE THE ABILITY TO CLOSE
THE LOOP BETWEEN MARKETING
AND SALES
MEASURABLE IMPACT
WE’RE NOT DIRECT RESPONSE,
BUT WE ALSO EXPECT OUR
BRAND BUILDING EFFORTS TO
MEASURABLY LEAD TO SALES
STORYTELLING FIRST
WE LEAN ON GOOD
STORYTELLING, INSTEAD OF
PROMOTIONS, TO ACQUIRE
CUSTOMERS

18. BRAND / ACQUISITION
PARTNERSHIP

19. 19
Brand & Acquisition used to work in parallel, but not together
BRAND
● Briefed creative team
for new campaign
assets
● Approved creative for
deployment
● Repeated process for
next campaign
ACQUISITION
● Deployed creative from
brand/creative team
based on sales goals
● Tracked performance
● Optimized spend behind
assets to achieve sales
targets
● Repeated process for
next campaign

20. 20
Brand & Acquisition now work lockstep in virtuous cycle
BRAND
● Briefs creative team
based on brand
priorities & acquisition
media plan
● Approves creative for
deployment
● Aligns on performance
with acquisition team
and rebriefs creative
team for new assets
CREATIVE
BRIEF
Based on messaging
needs (offer,
convenience, etc.)
DEPLOY
CREATIVE
After aligning with
internal team
ADJUST
CREATIVE
(COPY/IMAGES)
ACQUISITION
● Provides brand with
acquisition strategy,
media plan &
recommended asset
creation list
● Deploys creative
● Tracks performance and
shares learnings and
best practices with brand
team
● Deploys newly optimized
assets
ALIGN ON
PERFORMANCE
Add-to-carts, CTR, etc.

21. 21
HOLIDAY CAMPAIGN

22. 22
Peloton’s holiday campaign was the first test of this new, optimized process
CREATIVE A
CREATIVE
BRIEF
Based on messaging
needs (offer,
convenience, etc.)
DEPLOY
CREATIVE
After aligning with
internal team
ADJUST
CREATIVE
(COPY/IMAGES)
CREATIVE B
ALIGN ON
PERFORMANCE
Add-to-carts, CTR, etc.
• VS. YAG: +810% in add-to-carts, +844% in bike purchases, -8% in purchase CAC
• VS. FALL: ~ -58% in purchase CAC from fall
• Results driven by seasonal creative, prospecting efforts prior to holiday, and efficiency in
media buys

23. 23
Feedback loop allowed for optimizations to both copy and creative
LEARNING
Male model performs better than female model
ACTION
Create more assets featuring male model, with
similar message but slightly different copy
LEARNING
Rider testimonials are powerful tools
ACTION
Use same video creative but update copy to
feature real rider quotes / reasons

24. 24
The entire cross-functional team worked in the feedback loop developed for brand
& acquisition
AGENCY CREATIVE
(with input from internal team)
INTERNAL HOLIDAY BRIEF
(including Email, Acquisition, Retail inputs)
ACQUISITION
FOCUSED
EXECUTIONS
ENGAGEMENT/
RETENTION
BRIEF
ENGAGEMENT FOCUSED
EXECUTIONS
(including Boutique)
LAUNCH
INTERNAL ITERATIONS
(Acquisition & Retention) PLAN FOR HOLIDAY 2017

25. 25
Peloton’s holiday campaign was a 360-degree effort to ensure consistent
messaging
Retail Signage Email Display
Organic +
Paid Social
Digital Video
Versions for
leads +
home riders
Includes video,
static images, and
image carousels
Complemented by
our non-holiday TV
spot, which is on
heavy national
rotation. Originally
used Fitness
Evolved, now
flipping in B&W
digital video

26. 26
Why is this optimized hand-in-hand approach important?
Key Takeaways
● Both media & brand priorities should inform creative. We should tell the brand story while
optimizing towards measurable metrics
○ Media buy will inform creative, creative will inform media buy & targeting
○ Allows us to succeed even with two slightly different goals (brand telling the key
story / building equity, and acquisition focused on performance metrics)
● Digital as a medium allows for quick adjustments to creative (as opposed to other media
channels), which results in better performance
● Can create multiple versions of creative appealing to different targets & segments
● Real-time learnings help inform creative in other channels

27. 27
FUNNEL OPTIMIZATION

28. 28
A MOMENT 1 WEEK – 2-3 MONTHS 2 WEEKS 72 HOURS
Utilize insights from path to purchase research to optimize messaging across
various stages of customer lifecycle
POST-
PURCHASE
AWARENESS IDEALIZATION RATIONALIZATION
CONSUMER’SEMOTIONALSTATE
Intrigued
Infatuated
Excited
Addiction
Pragmatic,
Responsible
DECISION
WHOA, WHAT’S
THAT?! MEET-CUTE.
‣ The first image of
the bike, usually on
social media or a
commercial on TV,
is often arresting,
and sparks action
LOVE AT FIRST SIGHT,
CONTINUING TO
DREAM
‣ The super emotive
“love” phase, when
consumers are
dreaming about the
bike and what it would
be like to own one
PLEASED, THEN
ANXIOUS &
IMPATIENT
‣ There is an uptick in
excitement when the
order is placed, but
the gap in time
between payment
and the first ride can
inspire anxiety.
FEELING THE PULL
OF REALITY
‣ The “fact-finding”
phase, when
considerations
become sharply
practical, and the
focus is on
pragmatic, logistical
questions
NEGATIVENEUTRALPOSITIVE
Apprehensive

29. 29
ENHANCE FB CUSTOM AUDIENCE

30. 30
Utilize customer segmentation research to add psychographic segments to FB
custom audience
AOVEngagementPurchase
Purchase
LAL
Engagement
LAL
AOV
LAL
Behavioral Segments Psychographic Segments
Segment 1
LAL
Segment 2
LAL

31. 31