PREMIUM HOME & LIVING LOGISTICS

Rhenus and Peloton

Working Together for a High-Quality Customer Experience

The Rhenus Group has made a name for itself as one of the world’s leading logistics specialists thanks to its entrepreneurial spirit and its consistent focus on its customers. Logistics experience and employee commitment join forces at Rhenus Home Delivery when the company makes deliveries to final customers. The specialist has now introduced an individual value-added service for final customers in conjunction with the New York fitness equipment manufacturer, Peloton.

The Challenge

B2C supplies of premium home and living goods, like furniture and fitness devices, represent a major challenge for last-mile deliveries. Rhenus Home Delivery asked itself how the brand experience in the form of logistics services can be transported into customers’ living rooms.

The fitness equipment manufacturer, Peloton, which has really taken off as a business in the English-speaking world during the last few years, was planning to expand its operations to the German market in 2019. The Peloton premium fitness bikes were to be supported by an appropriate premium delivery service, which would offer buyers a harmonious brand experience. The requirements in this field range from the delivery team, which is the first and only direct contact with the client, to dealing with demanding customers and even creating the brand experience.

“At Rhenus Home Delivery, we’re aware that special products require special handling. We believe that the last mile is an intrinsically important element in the customer experience. Current logistics solutions in many areas have developed historically and aren’t geared to customers’ real needs. We’re seeking to change this,” says Nils Thiesen, Sales and Market Development Manager, explaining the new approach.  

The New Premium Last-Mile Service

The key element in Rhenus’ premium last-mile service package involves focusing on communications with customers. This is made possible through having hand-picked delivery teams. “Our employees’ soft skills are particularly important. The state-of-the-art training concept promotes soft skills and facilitates communications, problem-solving expertise as well as empathy by using various methods like case studies and role-playing games,” Thiesen adds. The training also provides know-how for specific products so that the workers can set up the item at the site and be able to respond to customers’ questions. In addition to the training courses, the teams have already had many years of experience in handling sensitive goods. The generously calculated time window ensures a relaxed atmosphere during the delivery too. 

These key topics have been defined in greater detail with our partner, Peloton Deutschland, and a premium process for Peloton bikes has been developed. The Peloton bikes are initially pre-assembled at the central warehouse in Hoppegarten and are securely packaged again for the delivery process. “We almost completely assemble the bikes at our central warehouse so that our delivery teams can fully concentrate on customers and their wishes and questions locally,” Thiesen says.

Rhenus Home Delivery has a comprehensive, stable network of logistics centres offering unified quality standards. The time window for the customer is narrowed down to two hours on the day before the delivery. Rhenus’ efficient IT facilities also enable customers to seamlessly track their shipment.

The delivery team sets up the sports equipment at the customer’s premises and positions it carefully until the customer is completely satisfied. The installation process includes a thorough explanation about using and caring for the product. “As we also provide customers with extensive instructions about the Peloton app and set up the Wi-Fi connection, some technical understanding is essential too,” Nils Thiesen explains. Thanks to their knowledge of the product, the employees can respond to customers’ questions in great detail.

Results

Martin Richter, the Country Manager at Peloton Deutschland, is delighted with the new premium delivery service. “The Rhenus Group is one of the leading logistics specialists and dovetails perfectly with Peloton thanks to its corporate philosophy that teamwork and passion are the preconditions for success. It’s also extremely important for us that our customers should enjoy a premium experience with our brand right down the line. This ranges from organising the delivery date during a time frame that is as small as possible to the set-up work and even the explanations and settings made on the bike at the customer’s home. The well-founded training that is given to the employees and the continual measurements of customer satisfaction are additional positive factors.”

Rhenus Home Delivery goes the “extra mile” with its premium last-mile service to ensure that individual needs are met. The high customer satisfaction score (CSAT) gathered by the fitness equipment manufacturer, Peloton Deutschland, which is used to determine the satisfaction ranking, shows that customers are very pleased with this “extra mile”.

The premium last-mile service provided by Rhenus Home Delivery is strengthening Peloton’s brand position and helps it to fulfil its promise of quality.

The delivery experience that is created through the premium service is set to become an integral component in last-mile logistics in the Premium Home & Living sector of the future.

If you are interested in our services or have any questions about the case study, please contact Katharina Galster, Head of Sales, Rhenus Home Delivery (LINKEDIN).

Peloton: Fitness trend from the USA conquers Europe - Founded in New York in 2012 - Market entry in Germany in 2019 - Over 1.6 million users worldwide - Price per bike: from € 2,290.00 - Montl. course fee: € 39.00 p. household.

The fitness industry is booming, because physical fitness is important to more and more people: yet fitness nowadays no longer just means training and muscle building. The sporty activity should be a genuine experience, which costs little time and increases the quality of life. Martin Richter, Country Manager at Peloton Germany, and Nils Thiesen, Managing Director Sales and Market Development at Rhenus, want to ensure that the premium fitness bike Peloton from the USA also conquers the German market.

Mr. Richter, Peloton is already very successful, especially in the USA and Great Britain. Who exactly are the buyers of your fitness bike?

Richter: We are specifically targeting private individuals. Many are in the middle of life with demanding jobs and families, so sport often gets short shrift. What unites the Peloton community is that our members take their fitness seriously and have a desire to be active.

In Germany, many people already train in clubs or go to the gym. Can your product still be successful here?

Richter: Certainly. In Europe, Germany is the country where fitness is writ large. Eleven million Germans are members of a gym, but there are also a lot of people who don't go as regularly as they would like. For them, Peloton is a new option.

Mr. Thiesen, how did Rhenus Home Delivery actually become aware of Peloton?

Thiesen: We follow the trends and developments in the fitness industry very closely. Peloton offers a great product and has very high standards for the customer experience. That fits very well with us. In addition, we have wanted to expand our product range for a long time to include a premium service for end customers.

The Peloton bike currently costs 2,290 euros, plus a fee for the virtual courses. That sounds pretty expensive. What makes the product so special?

Richter: Peloton stands for a completely new fitness concept that offers its members the ultimate cardio workout at home. Peloton produces the courses with well-known trainers in its own studios in New York and London. Members can watch them via live stream or access them after the fact. Our growing range of courses is highly motivating and a rousing training experience!

Rhenus Home Delivery: new logistics product for the premium fitness segment. When it comes to transporting furniture, electronic goods or sports equipment to the end customer, Rhenus Home Delivery is there. The specialist delivers around 2.5 million consignments in Europe every year. In addition, there are numerous services relating to the assembly and connection of the goods as well as the disposal of old equipment. Since the beginning of 2020, Rhenus Home Delivery has been offering a logistics solution specifically for premium products that focuses on the experience in the customer's own four walls.

After all, Rhenus Home Delivery already has decades of experience in the delivery of large sports equipment. Can you tell us a little more about your new premium service, Mr. Thiesen?

Thiesen: It's true that we at Rhenus already have a lot of experience in the fitness segment. Not only through Rhenus Home Delivery deliveries in the B2C sector, but also through Rhenus Sports Tech warehousing, deliveries and pre-assembly of equipment in fitness studios. With our premium service, the focus is very much on the customer experience.

So how exactly do you achieve a positive customer experience?

Thiesen: We already assemble the bikes almost entirely in our central warehouse, so our on-site delivery teams can focus entirely on the customer with their wishes and questions. Accordingly, the soft skills of our employees are particularly important. Since we also give the customer extensive instruction in the Peloton app and integrate it into the WLAN, technical understanding is also essential.

Those are high expectations for your employees. How have you trained your delivery teams for the tasks?

Thiesen: There were three training sessions. We developed the first one together with an external institute. The state-of-the-art training concept promotes soft skills and teaches communication, problem-solving skills and empathy using various methods such as case studies and role plays. It was also useful for our employees to train on the peloton bike themselves.

What were the other training sessions about?

Thiesen: In the second training session, we learned about the technology of the bike and the app, as well as the customer promise. The final training session took place on the Tour. Here, our project managers were on the road with the trainers from Peloton - over several weeks in all regions of Germany.

Mr. Richter, why did you choose Rhenus as your logistics partner in Germany?

Richter: The Rhenus Group is one of the leading logistics service providers and fits perfectly with Peloton with its corporate philosophy that teamwork and passion are the prerequisites for success. In addition, it is extremely important to us that our customers have a premium-level experience with our brand at all times. This ranges from the coordination of the delivery date in the smallest possible time window, to the assembly, to the explanation and adjustment of the bike at the customer. Then there is the in-depth training of staff and continuous measurement of customer satisfaction.

How many Peloton bikes could be delivered in Germany in the next few years?

Thiesen: The launch at the end of 2019 was very promising. We will already deliver several thousand bikes this year. And there is also potential in other European countries.

Could Rhenus Home Delivery also take over logistics across Europe if needed?

Thiesen: Of course. With our experience in Germany, distribution in other countries would certainly be easier for us than for a newcomer. In addition to Germany, Rhenus Home Delivery is already active in Great Britain, the Benelux countries, Italy, Poland, Bulgaria, the Czech Republic and Slovakia, as well as in many other countries with professional partners.

Many fitness bikes sooner or later gather dust in the attic or basement. Why is Peloton more than a short-term fitness hype?

Richter: Peloton has an extremely low unsubscribe rate because the training is very motivating. After a year, 94 percent of our members are still training regularly on their bikes. So Peloton is not a dust collector, but a real sweat driver!