Welcome to The Retention Newsie by The Email Marketers, the retention building experts for 8-& 9-figure e-commerce brands.

Every week, we bring you the best case studies, strategies, and tips for retaining more customers, turning them into raving fans, and increasing revenue.

Up this week:

• 🥗 How Community-Powered Peloton’s Rise

• 📧 The Power of Brand Ambassadors

• 📊 SMS Scheduling, Customer Lifecycle & More!

Reading time: 4 minutes 20 seconds

How Peloton Built a Fitness Empire Through Community

In 2012, Peloton founder John Foley faced skepticism from investors when he proposed bringing boutique fitness classes into people’s homes. The idea of a $2,000+ exercise bike with a screen attached seemed absurd. But Foley wasn't just selling equipment - he was building a community.

By 2018, Peloton reached a $4 billion valuation and sold over 300,000 bikes. Even more impressive, they maintained a 92% subscriber retention rate—nearly unheard of in an industry where most gym memberships go unused after January.

Peloton masterfully wove community engagement into every aspect of their product experience. As Dara Treseder, Peloton's SVP of Marketing explains, "We wanted to get back to the core of what makes Peloton so special... when we looked at our countless member communities, one core idea kept coming up: motivation."

This community-first approach manifests in multiple ways. More than trainers, their instructors are vibrant personalities who forge real connections with riders. Alex Toussaint became a Puma global ambassador, Cody Rigsby competed on Dancing with the Stars, and Robin Arzón authored a New York Times bestseller.

The technology itself is designed to form connections. During rides, users can see others taking the same class, compete on live leaderboards, and send virtual "high-fives" for encouragement.

The company even created special hashtag groups (like #pelotongainsters) to help riders find like-minded community members.

Their private Facebook group has grown to nearly 470,000 members who share achievements, support each other's fitness journeys, and create user-generated content that Peloton frequently features across their social channels.

Peloton has built a devoted following of 3.3 million social media followers who don't just buy the product - they preach it. Even during challenging times for the company, its community has remained remarkably stable, with connected fitness subscribers growing consistently since 2020.

• Turn Employees into Influencers: Help your team build connections with customers. Share their skills and stories to make them relatable and trusted. Peloton’s instructors became familiar faces who built strong bonds with riders.

• Gamify Connection: Use features like leaderboards or challenges that fit your product. Peloton’s leaderboards and high-fives made workouts engaging and interactive.

• Enable Micro-Communities: Offer tools or groups that help customers connect with others who share their interests. Peloton’s hashtag groups brought riders together and kept them involved.

We help 8-& 9-figure e-commerce brands increase revenue and build strong customer relationships through retention marketing: Email, SMS, direct mail, subscriptions, memberships, loyalty programs, and more.

Turning Customers into Brand Ambassadors

Retention marketing is all about turning customers into passionate advocates for your brand. Imagine if your customers didn’t just buy your products but actively promoted them to friends and family.

When customers truly love your brand, they become your most powerful marketing force, driving growth through genuine word-of-mouth recommendations.

Here are three actionable ways to cultivate brand ambassadors:

Start a Referral Program

Give customers a reason to share your brand. Set up a referral program where they earn rewards, like discounts or freebies, for bringing in new customers. Tools like ReferralCandy or Referral Rock make it simple for them to share personalized links.

For example, you could offer a 10% discount for every new customer they refer. This creates a win-win situation—your existing customers feel rewarded, and potential customers are enticed by a special offer. Referral programs are one of the easiest ways to let happy customers do the talking for you.

Ask for Testimonials

Satisfied customers can be your best marketing tool. Reach out to them for feedback or testimonials and make it easy to leave reviews on your website or social media. To encourage participation, offer small perks, like a discount or freebie, for their time.

Video testimonials, in particular, can be incredibly compelling. A short, heartfelt endorsement from a real customer builds trust and helps others see the value of your brand.

Encourage User-Generated Content (UGC)

UGC is a goldmine for organic promotion. Run contests or introduce a branded hashtag for customers to use when they share your products on social media. Not only does this give you free, authentic content, but it also builds a sense of community among your customers.

For instance, you could offer a prize for the best customer photo featuring your product. These posts not only create buzz but also build trust with new audiences, who see real people loving what you offer.

Retention marketing is about creating a cycle of love and loyalty. By launching referral programs, collecting testimonials, and promoting UGC, you can build a community of dedicated advocates.

These strategies turn happy customers into your best marketers, helping your business grow through genuine and authentic connections.

• Explore how Bath & Body Works' loyalty program reached 38 million members, accounting for over 80% of year-to-date sales.

• A new study found that 69% of marketers still rely on email, with AI-driven personalization critical for cutting through crowded inboxes.

• Apple’s iOS 18 introduced SMS scheduling, allowing brands to plan campaigns up to two weeks ahead.

• Shopify emphasized managing the customer lifecycle to turn casual buyers into loyal brand advocates.