Spotify: Tapping Big Data to Enhance Customer Experience
| Case Code: ITSY128
Case Length: 15 Pages
Pub Date: 2022
Teaching Note: Available
| Price: Rs.400
Industry: Leisure & Entertainment
Themes: Big Data Strategy, Customer Relationship Management
Abstract Case Intro 1 Case Intro 2 Excerpts
The ‘big data’
Spotify was largely a data-driven company. It tended to use data for every decision that it took. Whether it was a big shift in its product strategy or making a relatively quick decision about the addition of a track to one of its editorially-programmed playlists, data played a key role in ensuring sound decision-making. By July 2021, Spotify had about 4 billion playlists and 50 million songs. Since millions of users listened to music daily, Spotify collected customer data that consisted of playlist data, songs, and keyword preferences, search behavior, geographic data, and more..
Using the data, Spotify was able to come up with several products that helped it attract more customers to its fold. As the platform continued to accumulate data points, it used the data to develop unique content for each user. By generating personalized content, Spotify aimed to provide a music-listening experience to each user which would inspire them to continue listening and discovering new music that they would be engaged with week after week..
Spotify launched the Spotify for Artists app in 2017. This was a mobile version of its artist dashboard, which allowed artists to update their profile on the service, including their biodata, picks, and playlists. Spotify for Artists gave artists and their management access to data to improve their marketing and content..
Analysts said the success of Spotify was attributable to big data, as without it the platform would not have turned out the way it did. As users continued to use the platform, Spotify’s competitive advantage emanating from its volume of data, analytics, and AI would continue to grow, they said. Given its growing listener base and the amount of data it had, analysts expected that Spotify would gain more leverage over recording studios and artists who desperately needed access to data to make their business decisions..
Exhibit I: Share of Music Streaming Subscribers Worldwide (in the 1st Quarter of 2021)
Exhibit II: Number of Spotify Monthly Active Users Worldwide (from 1st Quarter 2015 to 3rd Quarter 2021)
Exhibit III: Spotify Age Demographics (3rd Quarter 2021)
Exhibit IV: Summary of Spotify Users and Financial Metrics
Exhibit V: Subscribers of Spotify vs. Rivals (2016-2021)
Exhibit VI: Spotify Subscribers by Region
Exhibit VII: Flow Chart of ‘Discover Weekly’
Exhibit VIII: Spotify – Listener Notification
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