86. Peloton: A Behavioral Economics Analysis

<p><span style="font-weight: 400;">Last year on the show, there were behavioral economics analyses of Apple Card, Costco and Starbucks and this is the first time in 2020 we will be digging into a specific company. I’ll talk about the infamous Peloton ad that made the company’s market value drop $1.5 billion in three days: what happened in the ad and why it went wrong. Then I’ll explain what could have been done better and the behavioral economics concepts that back it up.</span></p> <p><span style="font-weight: 400;">I also talk about my own personal experience with Peloton. I recently got one and I’m loving it. You’ll learn about the behavioral economics of financing options, the 30 day money back guarantee, as well as how they use the concepts of social proof, herding, reciprocity, and more in very smart ways. If you don’t have a Peloton, you’ll learn a little more about equipment, subscription, and app options. I also talk about some of the really cool things they are doing that align well with behavioral economics – including sharing a bunch of concepts I see in their set up, and we will wrap up with tips for your business based on successes from Peloton. </span></p> <p><span style="font-weight: 400;">As a note, I don’t do any work with Peloton and don’t know if they are working with anyone in behavioral economics or if they are familiar with any of these concepts or doing any of this intentionally. The stuff I talk about in this episode are my own thoughts and observations, not from any conversations I have had with anyone at Peloton.</span></p> <p><span style="font-weight: 400;">If you work there or know someone who does that would like to Connect, please email</span> <a href="mailto:Melina@TheBrainyBusiness.com"><span style= "font-weight: 400;">Melina@TheBrainyBusiness.com</span></a><span style="font-weight: 400;"> </span></p> <p><strong>Show Notes:</strong></p> <ul> <li><span style="font-weight: 400;">[03:28] Peloton is a fitness company that sells equipment and features live streaming videos on a screen