snapshot the best of Spotify The best of Spotify. A collection of signs and cases around Spotify - their added value services and communication

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1 snapshot the best of Spotify S I G N M E S H. C O M S N A P S H O T N O V E M B E R The best of Spotify. A collection of signs and cases around Spotify - their added value services and communication

2 S N A P S H O T We re not in the music space-we re in the moment space Daniel Ek CEO Spotify

3 C O N T E N T content about Spotify what are they doing right? what s the takeout for you?

4 introduction This report will provide some background on Spotify and explore their added value services and communication initiatives that contribute to a massive success of the platform. In this snapshot we take a deep dive into this company, specifically: I N T R O D U C T I O N Spotify: the largest on-demand music service in the world, and growing fast. They operate on a freemium model where users can search music by artist, album, genre, playlist or record label. With premium, users can avoid advertisements and download the music. Tens of millions of daily Spotify users generate data that gives Spotify a unique opportunity to develop their products and services based on user behavior. about Spotify few quick facts about the company and its growth what are they doing right? what kind of added value services does Spotify come up with to complement their user s experience? What kind of communication tactics they push? what s the takeout for you? what can brands learn from Spotify when it comes to providing added value services and coming up with successful communication?

5 about Spotify 1 few quick facts about the company and its growth

6 mission A B O U T S P O T I F Y Give people access to all the music they want all the time - in a completely legal and accessible way. Source: Spotify

7 Spotify users A B O U T S P O T I F Y Spotify has an impressive 25% conversion rate from Freemium account to Premium account 140M Active users 60M Premium subscribers Source: Spotify For Brands

8 A B O U T S P O T I F Y 148 Minutes Average time daily users spend listening to Spotify Source: Spotify For Brands

9 Spotify dominates on-demand music amongst paid users 6,9 4,3 3,5 Spotify Apple Music Deezer Pandora Rhapsody A B O U T S P O T I F Y Source: Spotify For Brands

10 Apart from providing music, Spotify is also expanding its offerings to: learning to play musical instruments learning languages listening to short stories and poetry A B O U T S P O T I F Y

11 This year, Spotify have already acquired four new tech firms. These will enable them to expand and enhance CX. Niland AI search & recommendation software for music Mediachain Labs A B O U T S P O T I F Y Blockchain start-up Sonalytic Audio detection start-up for identification, monitoring & discovery MightyTV Video streaming app customized to personal preferences Source: Crunchbase

12 what are they doing right? 2 what kind of added value services does Spotify come up with to complement their users experience? What kind of communication tactics they push?

13 I N T R O D U C T I O N added-value services How does Spotify facilitate and deliver services that enrich and simplify the lives of their customers around their core products?

14 discover weekly The streaming service's Discover Weekly brings users two hours of custom-made music recommendations each Monday morning. W H A T A R E T H E Y D O I N G R I G H T? The playlists have been personalized to users based on their previous week; their weekly delivery is intended to make users feel like their best friends made them a personalized mixtape every single week. As the user's taste evolves, Discover Weekly will keep up. Source:

15 Spotify & Waze partner for seamless navigation The new partnership means users can access their music without exiting the app and visa versa. W H A T A R E T H E Y D O I N G R I G H T? Working towards seamless connectivity, Spotify and Waze have partnered to allow users to continue to listen to their playlists while navigating within the app, and Spotify listeners can access Waze s navigation feature while in the Spotify app. Source:

16 Spotify launches app for artists The real-time streaming data collecting app will let artists know how their music is being explored. W H A T A R E T H E Y D O I N G R I G H T? The app is a one-stop shop for artists to track their new music as it goes live, control their presence on Spotify, and get to know how the music is being adopted by the listeners. It has been solely designed by keeping needs of the artists in mind. Source:

17 Spotify for gamers Spotify will be available on Microsoft s Xbox One in around 34 markets globally. The Spotify integration will allow gamers to choose the perfect music from Spotify while playing games on their Xbox console. The service lets users personalize the experience of gaming. They can simply play music on demand, regardless whether they have a free or premium account. W H A T A R E T H E Y D O I N G R I G H T? Source:

18 Spotify is offering personalized list of concerts The on-demand music service wants to help users discover artists and their live concerts happening around their location. W H A T A R E T H E Y D O I N G R I G H T? The feature Concerts will generate and suggest a personalized list of concerts happening in the users areas that Spotify thinks they ll enjoy. The feature is available in the Browse tab, where users can see some live concerts that they can tune into around their locations. Source:

19 I N T R O D U C T I O N communication What kind of content does Spotify create that leads people to enjoy consumption and sharing, rather than wanting to escape the advertisements?

20 "thanks 2016, it's been weird" Spotify has playfully used their listener data to kick off their largest-ever global, outdoor campaign. The whole idea is about aggregating data and turning them into playful headlines such as: - Dear person who played 'Sorry' 42 times on Valentine's Day, what did you do?" - Dear person in the Theater District who listened to the Hamilton Soundtrack 5,376 times this year, can you get us tickets?" W H A T A R E T H E Y D O I N G R I G H T? Source:

21 Spotify is looking for presidential candidates In a job advert, Spotify is recruiting a President of Playlists experienced in running a highly-regarded nation and holding a Nobel Peace Prize - descriptions fitting well to Obama. Spotify recently released a new job advert on their career section. The music streaming giant wants to hire a President of Playlists that has successfully created an eclectic summer playlist, has good relationships with artists and musicians like Kendrick Lamar, and that holds a Nobel Peace Prize. W H A T A R E T H E Y D O I N G R I G H T? Source:

22 Spotify launches cartoon series about music history The music streaming service is attempting to gain traction with a new video series that provides users with a history lesson about their musical choices. Spotify's latest video series, Deconstructing, is meant to teach listeners about the history of their favorite genres. The video series is designed to be informative and fun for users, and looks to engage them on a higher level beyond curated playlists. W H A T A R E T H E Y D O I N G R I G H T? Source:

23 secret social event by Spotify The most secretive and exclusive event of the year by Spotify has been announced. To get the tickets of the event students will have to comment on the campaign video of Spotify posted on Facebook, Twitter and Instagram with the hashtag followed by their university name. W H A T A R E T H E Y D O I N G R I G H T? Source:

24 Spotify is hosting hiphop tour The music streaming platform is hosting a hip-hop concert tour in partnership with Live Nation across North America. W H A T A R E T H E Y D O I N G R I G H T? The series is titled RapCaviar Live and it will kick-off in the Atlanta featuring Trap God, Guzzi Mane along with some other artists. After Atlanta, the concert will be hosted at Chicago, Houston, Los Angeles, New York and Toronto. Source:

25 what s the takeout? 3 what can brands learn from Spotify when it comes to providing added value services and coming up with successful communication?

26 -1- Harnessing Big Data, Machine Learning & Artificial Intelligence can personalize & streamline experiences W H A T S T H E T A K E O U T? Spotify has tens of millions of users logging on everyday for considerable amounts of time, providing Spotify with tons of data. This data is used to create custom recommendations like Discover Weekly. As the service acquires more and more data, it s training the algorithms to extrapolate insights that impact the business and the experience of listeners.

27 -2- If you re collecting big data, share the goods W H A T S T H E T A K E O U T? Partly a communication stunt, partly giving back. Spotify s campaigns which shared user data in amusing ads provided an element of value to the ones who supplied the data in the first place. Not being coy and keeping data secret to purely benefit themselves was a clever, transparent way of showing they re interested in their users and using the data to not only personalize service but to give them a laugh with funny trivia regarding fellow users.

28 -3- Convert customers by increasing perceived value W H A T S T H E T A K E O U T? Spotify s impressive conversion rate (25%) is a result of greater perceived value, which is offered in the form of escaping advertisements and features & functionalities including offline listening and accessing accounts across borders.

29 -4- Create a networking effect to connect customers and make them stick W H A T S T H E T A K E O U T? Spotify allows you to easily follow friends, enables simple sharing of songs, makes it possible to collaborate on playlists and provides passive broadcasting to Facebook as people listen to songs. The ease of using Spotify across different platforms and devices, further enables people to connect wherever they are. Once Spotify launched these features with Spotify connections, it dramatically boosted Spotify s value to each user with every new connection they made.

30 want more? request a demo R E Q U E S T A D E M O This report has been created with the signmesh innovation hub. A tailored dashboard of curated insights and business cases to keep your company ahead of the learning curve and inspire ongoing innovation. visit signmesh.com

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