Spotify: Dominating Music In Real Time

1. UNDERSTAND TODAY. SHAPE TOMORROW. LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE the latest installment of our: Customer Value Series SPOTIFY: DOMINATING MUSIC IN REAL TIME

2. ABOUT. INTRODUCTION UNDERSTAND TODAY. SHAPE TOMORROW. 2 UNDERSTAND TODAY. SHAPE TOMORROW. Discove Deﬁn Develo Delive At LHBS, we believe that brand or business strategies need to be prescriptive not just descriptive. A strategy needs to drive action through meaningful Customer Value Propositions. That’s why we work with our Customer Value Proposition Canvas as a navigation system for bringing strategy to life. We’ve created the Customer Value Series to analyze and share how leading companies bring their Customer Value Propositions to life through their core products, added value services, the customer journey and communication. This issue highlights Spotify - the on-demand music service. We hope you enjoy this deck and are able to be inspired by it in your innovation process. INTRODUCTIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

3. UNDERSTAND TODAY. SHAPE TOMORROW. 3 “We’re not in the music space- we’re in the moment space”  Daniel Ek  CEO Spotify LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

4. UNDERSTAND TODAY. SHAPE TOMORROW. INTRODU CTION. 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 generates data that gives Spotify a unique opportunity to develop their products and services based on user behavior. This report will provide some background on Spotify and explore their Customer Value Proposition using our CVP Canvas. We will identify the brand initiatives surrounding product innovation, added-value services, shopping experience, and communication that contributed to a new success. LHBS THE UNCONVENTIONAL STRATEGY FIRM. We help companies to understand emerging customer needs & expectations and shape business models, brand strategies and customer experiences to unlock future growth. http://www.lhbs.com Abhijeet Patil Consultant at LHBS lhbs.com | ap@lhbs.com INTRODUCTION 4 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

5. CONTENT. UNDERSTAND TODAY. SHAPE TOMORROW. CUSTOMER VALUE CANVAS CONCLUSIONS & IMPLICATIONS ABOUT SPOTIFY CONTENT 5 Chapter 1 Chapter 2 Chapter 3 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

6. UNDERSTAND TODAY. SHAPE TOMORROW. 6 ABOUT SPOTIFY Chapter 1 Quick facts about the company and its growth LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

7. UNDERSTAND TODAY. SHAPE TOMORROW. SPOTIFY USERS 7 Premium SubscribersActive users 140M 60M Source: Spotify Fast Company LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY Spotify has an impressive 25% conversion rate from “Freemium” account to “Premium” account

8. 148 MINUTES Average time daily users spend listening to Spotify UNDERSTAND TODAY. SHAPE TOMORROW. 8Source: Spotify For Brands LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY

9. UNDERSTAND TODAY. SHAPE TOMORROW. SPOTIFY DOMINATES ON- DEMAND MUSIC AMONGST PAID USERS 9 0 15 30 45 60 Spotify Apple Music Deezer Pandora Rhapsody 3,54,3 6,9 27 60 (data in millions) Source: Statista LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY

10. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. APART FROM LISTENING TO MUSIC, SPOTIFY IS ALSO EXPANDING ITS OFFERINGS: 10 Learning musical instruments Learning languages Listening to short stories and poetry Source: The Odyssey Online

11. UNDERSTAND TODAY. SHAPE TOMORROW. MISSION. “Give people access to all the music they want all the time - in a completely legal and accessible way.” 11Source: Spotify LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY

12. UNDERSTAND TODAY. SHAPE TOMORROW. REPORT TITLE // IMPLICATIONS. UNDERSTAND TODAY. SHAPE TOMORROW. SPOTIFY’S CULTURE OF INNOVATION CONTRIBUTING TO SUCCESS 12Source: Corporate-Rebels • Active and collective sharing of the mission • Harness the power of technology • Hire for culture, train for skills • A ﬂock of start-ups • Fail faster than anyone else LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY

13. UNDERSTAND TODAY. SHAPE TOMORROW. 13Source: Crunchbase 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 Blockchain start-up MightyTV Video streaming app customized to personal preferences Sonalytic Audio detection start-up for identiﬁcation, monitoring & discovery LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY

14. UNDERSTAND TODAY. SHAPE TOMORROW. 14 REPORT TITLE // IMPLICATIONS. DJ Tiesto, talking about Spotify’s Running feature: “This is where music is heading. Now the customer creates the mood, rather than the artist”  Source: Billboard LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE ABOUT SPOTIFY Source: Billboard

15. UNDERSTAND TODAY. SHAPE TOMORROW. How is Spotify operating in the four areas of products, services, experience and communication to best meet emerging customer expectations and to fulﬁll their customer value proposition? CUSTOMER VALUE CANVAS 15 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

16. UNDERSTAND TODAY. SHAPE TOMORROW. 16 CUSTOMER VALUE CANVAS Chapter 2 Spotify initiatives LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

17. UNDERSTAND TODAY. SHAPE TOMORROW. The better a company manages the interrelation between their products, services, experience and communication, the more value it will create for its customers and in turn, generate value from its customers. CUSTOMER VALUE CANVAS 17 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

18. Customer Value Canvas® CORE PRODUCT How might your Customer Value Proposition inspire or impact the performance or quality of your core product? ADDED-VALUE SERVICES How might your Customer Value Proposition inspire or inﬂuence additional services to simplify or enhance that create added value around the consumption or usage of your product? COMMUNICATION & TOUCH POINTS How might you create communication that   delivers your Customer Value Proposition and   not just promises it? END-2-END EXPERIENCE How might your Customer Value Proposition inspire a smoother, more pleasant customer experience in your omnichannel touch points. CUSTOMER VALUE PROPOSITION A clear, concise and compelling articulation of how the needs that are important to the customer are satisﬁed by the company / business unit. Designed for: Designed by: Date: Version: This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. How does Spotify facilitate and deliver services that enrich and simplify the lives of their customers around their core product? Which products does Spotify create? How does Spotify solve real customer problems with their product design? How is Spotify growing their core capabilities of being a market place? How does Spotify make searching for, purchase and interacting with their products & services a uniquely positive experience? What kind of content does Spotify create that leads people to enjoy consumption and sharing, rather than wanting to escape the advertisements? LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS

19. LHBS Put the Title of the Report here HOW TO. UNDERSTAND TODAY. SHAPE TOMORROW. 19 SPOTIFY’S CUSTOMER VALUE PROPOSITION. Customer Value Proposition Access to a world of music, individualized to enrich every moment. CUSTOMER VALUE CANVASLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

20. UNDERSTAND TODAY. SHAPE TOMORROW. 20 CORE PRODUCT WHAT IS THE CORE BUSINESS OF SPOTIFY, AND HOW IT IS EVOLVING? CUSTOMER VALUE CANVASLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

21. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Huge Music Library At the heart of Spotify and generating the most value for users is their huge library of music and audio ﬁles. Explore sign Spotify offers those subscribed to the service access to millions of music tracks as well as other audio content. The Spotify team also create many playlists, curated for speciﬁc genres, decades, moods and even based on what the user has been listening to recently. 21 CUSTOMER VALUE CANVASLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

22. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Curated Playlists Spotify’s core product is evolving as they become more known as content curated. Explore sign The Spotify team also create many playlists, curated for speciﬁc genres, decades, moods and even based on what the user has been listening to recently. 22 CUSTOMER VALUE CANVASLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

23. UNDERSTAND TODAY. SHAPE TOMORROW. “We now have more technology than ever before to ensure that if you’re the smallest, strangest musician in the world, doing something that only 20 people in the world will dig, we can now ﬁnd those 20 people and connect the dots between the artist and listeners.” - Matthew Ogle on Discover Weekly feature (Ex-Product Director Spotify) 23 CUSTOMER VALUE CANVASLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

24. UNDERSTAND TODAY. SHAPE TOMORROW. 24 ADDED-VALUE SERVICES HOW DOES SPOTIFY FACILITATE AND DELIVER SERVICES THAT ENRICH AND SIMPLIFY THE LIVES OF THEIR CUSTOMERS AROUND THEIR CORE PRODUCTS? LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE CUSTOMER VALUE CANVAS

25. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Discover Weekly The streaming service's Discover Weekly brings users two hours of custom-made music recommendations each Monday morning. Explore sign 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 user's taste evolves, Discover Weekly will keep up. More recently they released the Time Capsule feature, a personal playlist for every user guessing their teen-years favorites. 25 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE SHOPPING EXPERIENCE

26. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify & Waze Partner For Seamless Navigation The new partnership means users can access their music without exiting the app and visa versa. Explore sign 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 the Waze’s navigation feature while in the Spotify app. 26 ADDED VALUE SERVICESLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

27. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify Launches App For Artists The real-time streaming data collecting app will let artists know how their music is being explored. Explore sign 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. Artists can use these pieces of information to better understand their listeners, how they listen, their gender, age breakdowns, where they’re listening from. 27 ADDED VALUE SERVICESLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

28. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify For Gamers Spotify will be available on the Microsoft’s Xbox One in around 34 markets globally. Explore sign The Spotify integration will allow gamers to choose the perfect music from Spotify while playing games on their Xbox console. The service offers users’ to personalize the experience of gaming. They can simply play music on demand, regardless of whether they have free or premium account. 28 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE SHOPPING EXPERIENCE

29. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify And Hulu Teams Up For Students The platforms have teamed up to bring $4.99 subscription bundle to students. Explore sign The eligible students studying in the U.S. can beneﬁt “Spotify Premium for Students” along with Hulu. For the students with a premium subscription, already priced at $4.99 a month can activate the Hulu plan 29 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE SHOPPING EXPERIENCE

30. UNDERSTAND TODAY. SHAPE TOMORROW.Source: 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. Explore sign The feature Concerts, will generate and suggest a personalized list of concerts happening in users' area 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. The user can also straight away purchase the tickets to the concert, for which Spotify has partnered with SongKick. 30 LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE SHOPPING EXPERIENCE

31. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify and Tinder: It’s a Match! Users of the dating app Tinder can now also choose potential matches based on their taste in music. Explore sign A cooperation with streaming service Spotify lets users listen to the favorite song of other people on their proﬁles. It works with and without a Spotify account. Users can include their personal anthem on their Tinder proﬁle. When connected with a Spotify account, users can also show which other artists they listen to. 31 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

32. UNDERSTAND TODAY. SHAPE TOMORROW. 32 END-2-END EXPERIENCE HOW DOES SPOTIFY DELIVER A SUPERIOR CUSTOMER EXPERIENCE FROM SEARCH TO USE TO CUSTOMER SERVICE? LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE CUSTOMER VALUE CANVAS

33. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify With Scan The QR Feature Spotify is launching the new feature "Spotify Codes", for instant streaming and sharing the music with friends nearby. Explore sign Spotify Codes creates a unique barcode which can be scanned with the new camera in Spotify's app search button, located at top right corner. The feature makes the process of sharing information about songs hassle-free. 33 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

34. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify On Google Assistant Spotify users can now simply say “Ok Google, Play Spotify” and interact with the Spotify service entirely hands free. Explore sign Google announced that Spotify voice commands will be fully supported on Google Assistant. The service will be available to both free and premium Spotify users. The feature will be supported across all the Android phones, Google Home products globally. For frictionless experience, users just need to link their Spotify and make it the default player on Google Assistant. 34 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

35. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Easy Listening Across Interfaces Whether users want to listen online, ofﬂine, via a mobile device or when driving, Spotify enables a frictionless experience across interfaces. Explore sign Whether using the Spotify app, Spotify web player or installing the program on your computer, users can access their account and listen to music anywhere. Anywhere could mean on a mobile device, on games consoles, in the car, on TV or on speakers. 35 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

36. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Cancel Anytime When subscribed to Spotify Premium, users are able to cancel their account simply and at any time. Explore sign Spotify users are not tied into a contract when they purchase Premium, and there is a simple tutorial on how to cancel their account which they can do at any time, along with the words: “No hard feelings :)” They also ask the reason why the person is choosing to cancel their account, and the options such as “I am moving abroad” means they can suggest an alternative solution for this if users are not aware of their global services. 36 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

37. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify Assistant On Facebook Messenger The AI assistant called “M” will now start suggesting songs that people should listen on Spotify. Explore sign The intelligent assistant M delivers Spotify suggestions when music is brought up in conversation. People can also search and share music within the bot. It starts giving suggestions once the user mentions relative phrases like “Play Music” or “Listen to Music”. If users want to listen to songs from speciﬁc artists, they can do so with the M. 37 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

38. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify Creates Playlists Based on Weather & Location Data Partnering with Accuweather, Spotify created a new playlist website: Climatune. Explore sign A new playlist generator created by Spotify takes into account the weather of the location you are in. Climatune is the result of a year of research that compared the songs played on Spotify with the weather of the location the listener is in. It showed: the weather changes which music people listen to. 38 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

39. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Family Feature Spotify offer a family option so everyone can enjoy their own Spotify account under one roof. Explore sign Spotify advertise their family option as allowing people to “Listen together, but also separately.” One person in the household is designated as the one who pays for the account, and everyone still has their own, individual accounts with personal playlists. The cost is much less than if each person was to purchase a Premium account, making it a very cost- effective option for families. 39 END-TO-END EXPERIENCELHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

40. UNDERSTAND TODAY. SHAPE TOMORROW. 40 TOUCH-POINTS & COMMUNICATION What kind of content does Spotify create that leads people to enjoy consumption and sharing, rather than wanting to escape the advertisements? LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE CUSTOMER VALUE CANVAS

41. UNDERSTAND TODAY. SHAPE TOMORROW.Source: "Thanks 2016, it's been weird" Spotify has playfully used their listener data to kick off their largest-ever global, outdoor campaign. Explore sign 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?" - “Dear 3,749 people who streamed 'It's the End of the World as We Know It' the day of the Brexit vote, hang in there." 41 TOUCH-POINTS & COMMUNICATIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

42. UNDERSTAND TODAY. SHAPE TOMORROW.Source: 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. Explore sign 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. 42 TOUCH-POINTS & COMMUNICATIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

43. UNDERSTAND TODAY. SHAPE TOMORROW.Source: 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. Explore sign 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. 43 TOUCH-POINTS & COMMUNICATIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

44. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify Salutes Goofy Playlist Names Music streaming service Spotify continues to use user data in its out of home campaign. Explore sign Spotify’s global billboard campaign based on listener data that highlighted bizarre user habits is now being continued. A follow-up campaign creates headlines from unusually named playlists in some U.S. cities. 44 TOUCH-POINTS & COMMUNICATIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

45. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Secret Social Event By Spotify The most secretive and exclusive event of the year by Spotify has been announced. Explore sign 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. The where and how's of the event has been kept secretive, but once student wins the prize he/she will be awarded two standard tickets for the Secret Social event and a one night's accommodation at a hotel conﬁrmed by Spotify. On the event date, students will be provided with the transportation facility from speciﬁc pickup points around the city. 45 TOUCH-POINTS & COMMUNICATIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

46. UNDERSTAND TODAY. SHAPE TOMORROW.Source: Spotify Is Hosting Hip- Hop Tour The music streaming platform is hosting a hiphop concert tour in partnership with Live Nation across North America. Explore sign 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. 46 TOUCH-POINTS & COMMUNICATIONLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

47. UNDERSTAND TODAY. SHAPE TOMORROW. 47 SPOTIFY’S CVP SUMMARY LHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE CUSTOMER VALUE CANVAS

48. Customer Value Canvas® CORE PRODUCT How might your Customer Value Proposition inspire or impact the performance or quality of your core product? ADDED-VALUE SERVICES How might your Customer Value Proposition inspire or inﬂuence additional services to simplify or enhance that create added value around the consumption or usage of your product? COMMUNICATION & TOUCH POINTS How might you create communication that   delivers your Customer Value Proposition and   not just promises it? END-2-END EXPERIENCE How might your Customer Value Proposition inspire a smoother, more pleasant customer experience in your omnichannel touch points. CUSTOMER VALUE PROPOSITION To enable people to listen to whatever music they want, whenever they want, wherever they want. Designed for: Designed by: Date: Version: This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT CUSTOMER VALUE CANVAS Huge Music Library Curated Playlist Spotify For Seamless Navigation Spotify For Artists Spotify And Tinder Concert Locator Spotify And Hulu Partnership Discover Weekly Spotify For Gamers Spotify Assistant On FB Messenger Spotify Codes Easy Listening Across Interfaces Family Feature Cancel Anytime Spotify On Google Assistant Spotify Playlist Based On Climate Thanks 2016 - Outdoor Campaign Spotify Looking For Presidential Candidate Spotify Cartoon Series Spotify Social Event Spotify HipHop Tour

49. CONCLUSIONS & IMPLICATIONS What can we learn from Spotify? UNDERSTAND TODAY. SHAPE TOMORROW. 49 Chapter 3 CONCLUSIONS & IMPLICATIONSLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

50. ONE Create a networking effect to connect customers and make them stick UNDERSTAND TODAY. SHAPE TOMORROW. 50 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. CONCLUSIONS & IMPLICATIONSLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

51. TWO Harnessing Big Data, Machine Learning & Artiﬁcial Intelligence can personalize & streamline experiences UNDERSTAND TODAY. SHAPE TOMORROW. 51 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. CONCLUSIONS & IMPLICATIONSLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

52. THREE If you’re collecting big data, share the goods UNDERSTAND TODAY. SHAPE TOMORROW. 52 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. CONCLUSIONS & IMPLICATIONSLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

53. FOUR Convert customers by increasing perceived value UNDERSTAND TODAY. SHAPE TOMORROW. 53 Spotify’s impressive conversion rate (25%) is a result of greater perceived value, which is offered in the form of escaping advertisements+features and functionalities including ofﬂine listening and accessing accounts across borders. CONCLUSIONS & IMPLICATIONSLHBS // SPOTIFY: DOMINATING MUSIC IN THE DIGITAL AGE

54. UNDERSTAND TODAY. SHAPE TOMORROW. Discover ABOUT LHBS. Define Develop Deliver We are an unconventional strategy firm that helps clients to better understand today and successfully shape tomorrow. LHBS has extensive experience & expertise in business development, brand building and customer experience. The firm works across all major industries for clients from the FT Global 500, German Mittelstand and fast growing startups. http://www.lhbs.com ABOUT UNDERSTAND TODAY. SHAPE TOMORROW. 54 We work with legacy organisations to adapt their customer value proposition to meet emerging customer expectations. Together with our clients we discover business opportunities and deliver integrated customer offers for products, services, experiences and communication. http://www.lhbs.com LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT

55. LHBS Put the Title of the Report here HUB. UNDERSTAND TODAY. SHAPE TOMORROW. This case study has been created with the help of signmesh. signmesh innovation hub is a tailored dashboard of curated insights and business cases to keep your company ahead of the learning curve and inspire ongoing innovation. signmesh.com SIGNMESH 55 REQUEST A DEMO. LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT

56. Die in dieser Präsentation dokumentierten Gedanken und Vorschläge sind geistiges Eigentum der   LHBS Consulting Berlin GmbH und unterliegen den geltenden Urhebergesetzen. Die unauthorisierte Nutzung,   die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet. LHBS Consulting Berlin GmbH Köpenicker Straße 154 10997 Berlin Germany IMPRINT UNDERSTAND TODAY. SHAPE TOMORROW. www.lhbs.com THANK YOU 56 LHBS // DOMINO’S STRATEGY: FROM PIZZA TO TECH GIANT