Executive Summary: Both Silk and Peloton are customer segmentation examples for evolving with changing market conditions. Silk successfully broadened its lens from soy milk to the broader plant-based market with almond and oat milks (along with yogurt and creamers) by understanding the customer segments that were emerging. Similarly, Peloton evolved its customer segmentation in response to the COVID pandemic demand to reach a broader group of consumers, and then readjusted post pandemic.
Silk & Peloton Faced Changing Trends, Pivoted & Succeeded
Customer Segmentations enable leaders to get a firm understanding of distinct customer needs, where their products currently play and potential growth opportunities. There are many types of customer segmentation examples. Here are three:
- Demographic Customer Segmentation Example: Based on demographic factors such as, age, gender, marital status, race, occupation, education, income, etc. A classic example of demographic segments are age-based generational groups such as Gen Z, Millennials, and Boomers
- Behavioral Customer Segmentation Example: Leverages behavioral information such as, number of purchases, usage frequency, products purchased, etc. to group consumers. Volume-based segments of Heavy, Medium, Light users or One Time vs. Two Time purchasers are a clear output of this approach
- Psychographic Customer Segmentation Example: Based on beliefs, attitudes, values, interests, motivations, etc. Health and wellness segmentations typically layer in values and wellness aspirations to create distinct consumer groups
Each approach has its merits, depending on what it is being used for, but applying a singular approach to inform your overall brand strategy can be limiting. For example, a behavior only based segmentation will lack insight on the motivations behind the behavior.
We’ve seen more success when companies combine various inputs (demographic, behavioral, psychographic, etc.) and leverage advanced analytics to build a robust customer segmentation fact-base. This allows them to chart a more informed and actionable path for profitable brand growth, taking into account:
- Size and profitability of segment
- Brand relevance and competitive advantage
- Strategic fit, etc.
Below are customer segmentation examples that empowered two companies to refine their core and expansion targets, unlocking new growth opportunities
Customer Segmentation Example 1:
Silk Brand Expands Target
The Silk brand, now owned by Danone North America, launched its soy milk in 1996. By 2008, the soy milk market was estimated at $1.2 billion, with Silk driving $558 million in sales. Fast forward to 2024, and plant-based milk sales are estimated by SPINS at $2.8B, down 5% compared to 2023.
Over the years, the plant-based milk market has changed and is now primarily:
- almond milk: $1.5 billion in 2024
- oatmilk: $700 million
- soy milk: $212 million
And, while Silk started in soy, it is now a customer segmentation example in evolving product offerings to meet market needs. The brand has expanded to almond, protein (almond), oat, coconut, cashew as well as plant-based creamers and dairy-free yogurts. Within milk, Silk brand’s overall plant-based milk share is estimated at 8% as of 2024.
How Has Silk Evolved Since Insight to Action Worked with the Brand?
When we worked together, the market was rapidly evolving. Plant-based milks, in general, were gaining momentum with new players entering the market, such as Oatly that was introduced in the US in 2016. To keep driving growth in the face of this evolving market, the Silk brand team quickly recognized the need for a broader understanding of the nutritional beverage world (beyond avid soy milk users).
In 2009, Silk partnered with Insight to Action to build a broader, value-added milk customer segmentation and nutritional needs framework to inform their marketing and innovation strategy. The result was the identification of two new target segments for Silk.
Which Customer Segmentation Example Helped Silk Evolve Its Success?
The expansion target – Convincibles – were a sizable segment open to more nutritional plant-based milk alternatives, but flavor was important. Silk launched PureAlmond targeting Convincibles in 2010. Silk’s almond milk business was estimated at $520 million in 2022 for Danone, while the oat milk business was estimated at $43 million.
In 2025, Silk’s parent company, Danone’s Essential Dairy and Plant based (EDP) in North America posted:
- 2.6% like-for-like growth in the 1st quarter
- 2.4% like-for-like growth in the 2nd quarter
The Silk brand continues to adapt with the market for plant-based foods and milks, even in the face of headwinds like the recent resurgence in dairy-based milks.
For more detail on Silk, read our Customer Segmentation Update: Silk Brand Case Study article.
Customer Segmentation Example 2:
Peloton Redefines Core Target
Peloton Interactive launched in 2012, offering a high-tech stationary bike that allowed users to take instructor-led workouts at home. Basically, it’s an alternative to the gym.
By 2019, Peloton had $915 million in annual sales (110% growth since 2018). In 2020, growth was further accelerated by the shutdown of gyms during COVID. The brand is known by many as a pandemic growth story (and post-pandemic bust).
For the whole fiscal 2025, Peloton had revenues of $2.5 billion and a net loss of $119 million. Fiscal 2026 is projected at $2.4 to $2.5 billion with a profit. So far, the company appears on track for these results, based on first quarter 2026 results.
Peloton is a Nimble Customer Segmentation Example
Peloton evolved its customer segmentation approach several times, first to adjust to the COVID pandemic situation, and thereafter to adjust to the post-pandemic years, with evolving and changing return-to-work policies.
Peloton’s former global marketing lead Carolyn Tish Blodgett explained that Peloton had to first do extensive research on the customer landscape and adjust their targeting and messaging strategy. Initially, Peloton was targeted to a more affluent suburban consumer who had the space for at-home exercise equipment – after all, it was a pricey, $2,000 investment. In 2025, Peloton lists its price at $1,445 for its “Bike” with the All Access membership additional at $44 per month. The Bike+ costs $2,495.
How Peloton Found Success During the Pandemic
The historical customer landscape led to the identification of a new core target – a younger, urban and less-affluent consumer who was willing to pay for the convenience of having an engaging, at-home fitness regimen. This shift opened up an unprecedented growth opportunity for the company as they pivoted their communication strategy to focus on the underlying customer motivations and experience, as opposed to basic demographics or geographic segments. During the pandemic, Peloton reached out to broader consumer targets who were suddenly working from home, while traditional gyms closed.
How Peloton Tried to Evolve in 2024
In 2024, the Peloton marketing leader at the time changed the brand’s customer focus to “less bike, fewer promotions, more men.” Said former Peloton CMO Lauren Weinberg,
“We believe that we were hitting some diminishing return in our previous strategy, because we’ve been talking to the same people with very similar messages”
Weinberg explains more about the “Find Your Push, Find Your Power” campaign,
“Our brand research has shown that more than 70 percent of millennial males engage with running, but many in that same audience set are either not aware of our Tread and running offerings or are unsure if we’ll deliver a challenging enough fitness experience for them.”
2025 Brings New Leadership to Struggling Brand
In June 2025, Peloton announced its newest marketing leader, Megan Imbres who brings a strong background from Apple Marcom LA and Netflix. As context, Peloton has cut its marketing and advertising spending for the past four quarters.
Given the new leader, and the ever changing market, it’s likely that Peloton will also consider evolving the customer segmentation to capture emerging demand.
What’s the Takeaway for these 2 Customer Segmentation Examples?
These two customer segmentation examples show the importance of having a robust understanding of the customer landscape. By understanding the broader needs of consumers (e.g., beyond current usage or buyers), both of these brands were able to reach a broader and more profitable audience in a way that resonated with their needs and established them as market leaders in their respective industries. Both of these brands have also evolved their segmentations to capture untapped and emerging demand in the market.
Get more inspiration on our Customer Segmentation resource page, or contact us to start a conversation with Insight to Action experts.
