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00:00BEFORE WE GET ONTO THE INDIVIDUAL EXPERTISE OF THE BOOK AND THE STORY YOU ' RE TELLING, WHAT ' S THE RECIPE FOR PELOTON? WHAT HAS GONE SO WRONG IN THE WAY THEY TALK TO THE CONSUMER? JEFF: I THINK THE PELOTON STORY CAN BE BROKEN UP INTO A TALE OF TWO CITIES, THE RISE AND THE FALL. AND THEY ' RE BOTH REALLY HIGHLY INTERRELATED. SO DURING THE RISE, WHAT THEY DID WAS THEY EMPOWERED THEIR AUDIENCE. IT WASN ' T NEW TECHNOLOGY. IT WASN ' T NEW TECH NEW COMMUNICATION. -- WASN ' T NEW COMMUNICATION. LET ' S CONNECT AND EMPOWER PEOPLE. LET ' S GIVE THEM THE RIGHT CONTEXT, THE RIGHT PLACE, THE RIGHT TIME AND IMPROVE THEIR LIVES. WE THOUGHT THEY WOULD GET LOOK HANGING FRUIT. BUT THE BIG QUESTION NOW IS WHAT ' S GOING ON? AND THE ISSUE IS, THEY ' RE NOT PLAYING OFFENSE WITH THEIR BRAND. THINK ABOUT A FEW WEEKS AGO WHEN THERE WAS THE SEX AND THE CITY REBOOT AND ALL OF A SUDDEN, THE STOCK-PRICE WENT DOWN 4% IN ONE DAY BECAUSE SOMEBODY DIED ON THE SHOW BECAUSE THEY WERE USING THE PELOTON BIKE. THE COMPANY WITH A $10 BILLION MARKET CAP, THEY SHOULDN ' T HAVE THAT KIND OF IMPACT FROM A FICTITIOUS SEEN ON A SHOW THAT VERY FEW PEOPLE ARE AWARE OF AND VERY FEW PEOPLE HAVE ACTUALLY SEEN. SO WHAT I THINK THEY REALLY NEED TO GET BACK TO IS PLAYING OFFENSE WITH THEIR MESSAGING, COMMUNICATING TO PEOPLE WHAT MAKES THEIR PRODUCT DIFFERENT, WHAT MAKE THE PRODUCT BETTER. IT ' S CLEARLY A GREAT PRODUCT. BUT ONCE YOU GET PAST THE LOW HANGING FRUIT, IT GETS HARDER. CAROLINE: FOR MANY WHO USE IT AVIDLY, THEY DON ' T CARE. BUT IT ' S ABOUT THE MESSAGING TO THE NEW USER. AND TALK TO US, THEREFORE, ABOUT THE WAYS IN WHICH -- WHO WOULD YOU SAY HAD THE PERFECT STRATEGY OVER THE YEARS? THEY ANALYZED WHICH BUSINESSES GET IT SO RIGHT. JEFF: I THINK THE POSTER CHILD FOR THE COMPANY THAT REALLY DOES IT RIGHT IS PATAGONIA. AND I ALWAYS LOOK AT THE WORLD THROUGH THE ADVERTISING LENS. AND WHAT THEY DO IS THEY DON ' T USE TRADITIONAL INTERRUPTIVE ADVERTISING. THEY CREATE IMMERSIVE CONTENT. THEY EMPOWER PEOPLE. THEY EDUCATE PEOPLE TO LET THEM UNDERSTAND HOW THEY CAN DEFEND THE ENVIRONMENT BETTER. BUT I THINK AS EFFECTIVE AS PATAGONIA IS, A LOT OF PEOPLE MISS ANALYZE IT. THEY THINK IT ' S A GREEN STORY. AND BRANDS NEED TO REALIZE PEOPLE DON ' T WAKE UP IN THE MORNING EXPECTING EVERY BRAND TO HUG THE TREES AND SAVE THE AMENITIES. IT ' S ABOUT EMPOWERING PEOPLE. IT ' S ABOUT IMPROVING PEOPLE ' S LIVES ONE SMALL STEP AT A TIME IN AN AUTHENTIC WAY. CAROLINE: WHAT WAS INTERESTING ABOUT PATAGONIA, PERHAPS THEY GOT HIJACKED BY TECH PROS, BANKING BURROS. I REMEMBER PEOPLE STOPPING PEOPLE BUYING COMPANIES ORGAN -- ORDERING THEIR CLOTHING. WAS THAT THE RIGHT TACTIC, TO RECLAIM THEIR MESSAGING, NOT LET IT BE TAKEN AWAY FROM THEM IN SOME WAY? JEFF: IT ' S A VERY BOLD MANEUVER AND I THINK THAT ' S WHY PATAGONIA SUCCEEDS. THEY ARE BOWLED OVER AND OVER AND OVER AGAIN. AT ONE POINT, THEY TOOK OVER THEIR ENTIRE WEBSITE WITH A MESSAGE THAT SAID DON ' T BUY THIS JACKET, AND THEY LITERALLY TALK PEOPLE OUT OF BUYING MORE PRODUCTS FROM THEM BECAUSE THEY WANTED TO EDUCATE PEOPLE ABOUT MANUFACTURING BYPRODUCTS AND GARBAGE FROM CONSUMERISM. SO BOLDNESS IS THE ' WAY TO GO AND THAT ' S WHATS MISSING WITH PELOTON, IS THAT THEY ' RE JUST NOT BOLD WITH THEIR EXTERNAL ADVERTISING. CAROLINE: JEFF, BUT ABOUT THE MEANS OF COMMUNICATION, AND ALSO THE RAMIFICATIONS THERE? WE ARE SEEING THE UPS AND THE DOWNS OF THE LIKES OF TIKTOK, SOME OF HOW VITRIOLIC AND, IN SOME WAYS, NEGATIVE TIKTOK CAN BECOME AGAINST ONE PARTICULAR HUMAN BEING, FOR EXAMPLE, AS WE ' VE SEEN. HOW ARE YOU SEEING COMPANIES EMBRACING THE RIGHT FORMAT FOR THEIR MESSAGING? JEFF: THAT ' S A REALLY FUN QUESTION. AND I THINK THE ADVERTISING, AND EXCUSE ME, THE AUTOMOTIVE INDUSTRY OPENED OUR EYES TO TO IT. THE TYPICAL PERSON SPENDS 13 HOURS ON THEIR JOURNEY. ONCE THEY DECIDE THEY WANT TO BUY A NEW CAR, 13 HOURS BEFORE THE COMPLETE AND PURCHASE. MOST BRANDS ARE FOCUSED ON A, A FEW SECONDS THROUGH THE JOURNEY TOWARD LET ' S TRY TO HIT PEOPLE WITH A BUNCH OF TIKTOK MESSAGES. THE REAL ANSWER IS HOW DO WE FIND WHAT PEOPLE ARE REALLY LOOKING FOR? IT DOESN ' T NEED TO BE SUPERFICIAL AND WE DON ' T NEED TO USE INTERRUPTIONS ON TV OR TIKTOK OR WHATEVER NEWS PLATFORM IS OUT THERE.

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The Rise and Fall of Peloton

Questus CEO Jeff Rosenblum joins Caroline Hyde to discuss his new book "Exponential" looking into how the best companies don't interrupt but empower. Also, his thoughts on Peloton's rise and fall, and why Superbowl ads are pointless. (Source: Bloomberg)

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