The news: Both Peloton and lululemon athletica’s Mirror fitness brand are taking steps to drive more people to buy their expensive devices as they look to expand their customer bases.
A pandemic-driven trend: The pandemic drove many consumers to shift to at-home workouts and connected fitness devices such as Peloton’s bike and treadmills and Mirror’s device.
Expanding their reach: Connected fitness companies’ long-term success is dependent on their ability to attract and retain subscribers willing to pay a monthly fee to access content.
The big takeaway: Recurring revenue models are incredibly powerful as they can provide companies with predictable income, financial stability, and brand loyalty. But the model only works if companies continue to grow their base and minimize churn.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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