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Product growth Case study

Collaborators : Shubham Parekh, Sonakshi Verma, Harsh Raghuwanshi

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CONTENTS

  1. Market Research
  2. Jobs to Be Done
  3. User Personas
  4. Customer Journey Map
  5. North Star Metric
  6. AARRR
  7. Growth and Engagement Loops
  8. Wireframes

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About Spotify

Spotify is a digital music, podcast, and video service that gives you access to millions of songs and other content from creators all over the world.

Founded on 23 April 2006 by Daniel Ek and Martin Lorentzon, it is one of the largest music streaming service providers, with over 551 million monthly active users, including 220 million paying subscribers.

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MARKET RESEARCH

Spotify in 2023 leads by -

  • Region in - Europe (159 Mn users)
  • Demographics - 25 to 34 year olds
  • Gender - Females (56%)

44% of users listen to Spotify on a daily basis (Goodwater Capital)

Spotify currently has 5 Mn podcasts & 100 Mn songs in its library with 60,000 songs added everyday.

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Competitor Analysis

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Job To Be Done

Functional: To discover, enjoy and share music according to our mood and activity.

Social: To share and connect music with friends and demonstrate social status.

Emotional Job:

  • To Relax after a hard day’s work.
  • To stay Energised during work out.

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USER PERSONAS

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Samantha PrABHu, Music Enthusiast

Age - 29

Profession - Sr. Consultant, LinkedIn

Location - Bangalore

Favorite Genres - Pop, Rock, Indie, Rap

Favorite Artists - Harry Styles, Coldplay, Prateek Kuhad, Badshah

Frequency of Usage - Daily, 3-4 hours

Likes to streams music whether on the go, working out or just relaxing at home. Lives with flatmates with whom she enjoys karaoke nights and jam sessions every weekend. Always on the look for niche and experimental music to curate playlists and share with friends and family. Additionally, likes to keep a tab on her favorite artists’ tours and new albums.

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MOTIVATiONS

1. To listen to her curated playlists to match her mood and activity, be it commuting or working out.

2. To switch between different devices seamlessly in between songs.

3. To easily share or collaborate on music or playlist with friends.

4. To keep a tab on her favorite artists’ tours and new albums.

FRUSTRATIONS

1. Hard to integrate new music discovered outside of spotify to her app memory.

2. For songs from different regions, lyrics show up in only the native language.

3. Genres do not show up, which makes it hard to sort new music in her curated playlists.

4. New releases or live launches of her favorite artists’ cannot be streamed.

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Jake mendez, Music Artist (Indie)

Age - 22

Profession - Singer, Songwriter, Performer

Location - New York

Favorite Genres - Country, Pop, R&B

Albums - After Hours

Upcoming Tours - Chicago, IL, Denver, CO, Austin, TX

Jake discovered his love for music while strumming his dad's old guitar in his childhood bedroom. He's a self-taught musician, juggling gigs at local cafes and a part-time job to pursue his dream of making heartfelt, acoustic-driven music. With Spotify, he's found a platform that amplifies his talent, connects him with a global audience, and helps him reach listeners who resonate with his unique sound. It also provides him a means to promote his upcoming shows and events.

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MOTIVATiONS

1. Dreams to go mainstream by releasing solos and albums along with collabs with other artists.

2. To diversify his income stream through multiple channels

3. Being a millenial artist, wants to use digital first tools to create, publish & get discovered by fans.

4. Social element of spotify and analytics tools helps understand the audience better to create and curate better music.

FRUSTRATIONS

1. Unable to reach the target audience and improve discoverability.

2. Revenues at Spotify are very low for new artists.

3. Artists are required to have a third-party distributor to upload songs to Spotify.

4. No avenue to sell tickets for shows directly on Spotify.

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(Retd) Lt Gen Vikram Batra, POdcast creator

Age - 60

Location - Chandigarh

Hobbies - Reading, Writing, Gardening

Subject Expertise - Strategic and Military Affairs, Geo-politics.

Favorite Books - Grand Chessboard, Future of Land Warfare

Frequency of Podcasts- Twice a week (Tuesdays and Fridays)

Lt Gen Vikram Batra’s podcast is a valuable resource for getting a deeper understanding of India’s strategic challenges, geopolitics and military affairs. He’s an avid writer who occasionally pens articles on military history and enjoys meticulous research and scripts for each episode of his podcast. He actively engages with his audience, and promotes the podcast on social media and through collaborations which also add to his retirement funds.

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MOTIVATiONS

1. To be able to get feedback and engage with the audience through QnAs and Polls.

2. To be able to host, record and edit podcasts along with other spotify users online on spotify itself.

3. To be able to monetise the podcast through various streams like ads, merch, patreon links.

4. To be able to customise podcasts through promotional banners, host recommendation and best place to start.

FRUSTRATIONS

1. Options to get live feedback or open comments are not available.

2. Sharing snippet’s from one’s podcasts on other social media platform for promotions are unavailable.

3. Avenues for monetization are few, especially for small or newer podcasters.

4. Technical glitches when uploading episodes across platforms and poor customer support.

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CUSTOMER JOURNEY MAPPING

We are focusing on listeners as the primary user persona because they consist of the majority of Spotify’s user base. Understanding listener behavior and preferences is key to delivering a great user experience and ensuring Spotify remains competitive and innovative.

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CUSTOMER JOURNEY MAPPING

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NORTH STAR METRICS OF SPOTIFY

No. of paid subscribers (REVENUE)

Podcast consumption hours (ENGAGEMENT)

Monthly Active Users

(ENGAGEMENT)

Spotify’s important business performance metric

Metric for Podcast as a sub-product

Metric for Freemium & Ad Supported users

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Problems and Prioritization

The following problems were found through user research and investigation. Prioritization of the problems are done based on how closely they drive the north star metrics of spotify.

PROBLEM

CRITICALITY

Genre doesn't show up for any song

Not Critical

Cannot preview any song without the app

Somewhat Critical

Cannot close the player completely while using the app

Not Critical

No integration of radio

Somewhat Critical

Only connects with fb contacts

Somewhat Critical

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Spotify Canvas- Music Videos are limited to 3-8 seconds

Critical

Live releases/Song launch not available

Critical

Lyrics in only 1 lingual script

Somewhat Critical

Spotify sharing on instagram does not play the audio

Somewhat Critical

Cannot detect songs playing outside spotify like Shazam

Critical

Doesn’t show how many likes on a particular song.

Not Critical

Remote Listening group has limited no. of participants (only 7)

Not Critical

Listeners does not find existing playlists good enough for them.

Critical

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Acquisition

Cannot preview a particular song without the app

Preview song on the browser without logging in

Opportunities

Solutions

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ACTIVATION

Opportunities

Solutions

Limited friend connectivity, relies only on Fb contacts

Enable integration with phonebook, Instagram, and WhatsApp.

Listeners seek more personalized and engaging playlists.

Generate on demand customized playlists by considering mood, activity, location and language.

Inability to identify songs being played outside of Spotify

Implement Shazam-style song recognition functionality.

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RETENTION

Opportunities

Solutions

Lack of functionality to translate lyrics to sing along.

Provide lyrics to enable users to sing along in their preferred language.

No option to watch music video with playback.

Enhance support for long-format music videos on Spotify.

Users lack a convenient mode of music discovery

Partnering with radio stations to stream their shows on spotify

Live releases/ launch not available

Live song releases/album launch premiers

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Referral

Audio playback unavailable when a song is shared from spotify to instagram or whatsapp.

Ability to stream preview of song by embedding spotify player with Insta/WhatsApp etc. along with option to take user to spotify app to listen to full song

Opportunities

Solutions

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Growth and Engagement METRICS

Acquisition

Growth -

  • SEO
  • Marketing
  • Ads
  • Artists promotions
  • Offers on subscriptions

Growth -

  • Registration
  • Sharing

Engagement -

  • Onboarding
  • Liking, Creating playlist
  • Blend playlist

Activation

Retention

Growth -

  • Recommendation algorithm (playlist, artist)
  • Spotify Wrap

Engagement -

  • Song/album/podcast launch
  • Live Events
  • Daily hits
  • Offline Listening
  • Cross platform sync
  • Blend playlist - update daily
  • Lyrics

Referral

Growth -

  • Spotify Codes
  • Songs Links
  • Connect Fb to share activity
  • Spotify Wrap

Revenue

Growth -

  • Family plans, mini plans
  • Ads Platform

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Growth LOOP

SPOTIFY WRAP

  1. At the end of the year, Spotify creates a personalized Wrap of the Year for each user.
  2. Users share this on social media, which exposes their friends and followers to Spotify.
  3. New users sign up for Spotify so that they can create their own Wrap of the Year.

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Engagement LOOP

PERSONALISED RECOMMENDATIONS

  • Based on the user's listening habits and history, Spotify collects data and creates personalized recommendations in the form playlists like Daily Mix etc.
  • Spotify's suggestions keep users interested and involved as it also provides new music discovery, making them want to use the app more.

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Prioritization of Solutions�Through ICE Framework

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Solution

Impact

Effort

Confidence

Prioritization

Improving spotify integration with instagram, FB, Whatsapp etc

4

3

5

P3

Connect to /Recommend contacts from phone, instagram, whatsapp

3

2

4

P4

Shazam like song recognition

4

3

5

P3

Preview a particular song without login for non users (on web)

3

1

3

P2

Generate a playlist based on mood, activity, location and language.

4

2

5

P1

Radio Integration

3

3

5

P5

Longer format music videos

3

1

3

P2

Translate Lyrics in multiple language

2

1

3

P4

Live Song releases

3

1

4

P0

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WIREFRAMES

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P0 - Live Song releases

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P1 - On Demand playlist generation

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P2 - Longer format videos

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P3 - song detection on the lines of Shazam

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