An overview and ways to improve the application.

1. Spotify
Product Deck
Making an amazing product even better
By, Aditya Dutta

2. Contents
• About
• Mission and Vision
• By the Numbers
• Future
• Improving Spotify
• Impact - Complexity Matrix
• Tracking Success Ratio

3. About
• Spotify is an audio streaming service that provides users with access to music, podcasts,
radio programs, news, and more.
• The company uses a “freemium” business model, meaning that customers can pay a monthly
subscription fee to receive additional product features, including ad-free and offline listening.
“Free” customers can choose to upgrade at any time or continue to use the product at no cost for
as long as they’d like.
• The company was originally founded by CEO Daniel Elk in 2006 and now has 155 million
subscribers and 345 million monthly active users.

4. Mission and Vision
• Mission statement –
Spotify aims to be a facilitator of artists’ profitable livelihood, while benefitting consumers
through mobile and non-mobile access to an ever-expanding collection of digital content.
• Vision statement –
Spotify’s corporate vision is to be a cultural platform where professional creators can break free
of their medium’s constraints and where everyone can enjoy an immersive artistic experience
that enables us to empathize with each other and to feel part of a greater whole.

5. By the Numbers
• Spotify currently has 299 million subscribers spanning 92 countries with a 35% global market
share in the streaming industry, almost twice the market share of Apple Music at 19%.
Source: Counterpoint Research

6. By the Numbers
• Spotify comfortably leads it’s nearest rival, Apple Music in terms of paid subscribers by
almost 50 million users.

7. Future
• With a 35% global market share, Spotify’s definitely seem to be a player that will
have a long lasting future.
• Spotify’s aggressive entry into the trending world of podcasts ensures diversification via different
kinds of audio streaming.
• Spotify have offered musicians that sign direct a 50% revenue share of music streams, higher than
the 30% share offered by labels.
This generous artist payout ratio bodes well as they directly deal with Spotify and cut-out the
middlemen in the form of labels to create a win-win situation.
• Lastly, with Spotify’s recent launch of Greenroom, a live social audio app, they’ve ensured that
they are always at the cusp of the next big thing.

8. Improving Spotify
Improvements to Spotify can be made by considering these 4 categories –
• Staying ahead of the competition
• Catching up with the competition
• Simplicity for the end-user
• Security

9. Improving Spotify
• Staying ahead of the competition –
• Spotify Share: A chat-like experience where you can share music directly in the app and
have basic texting features. Ensures that friends/family do not miss out on music amongst the clutter of
other text messages on platforms like WhatsApp, Instagram, etc.
• Spotify Profile: Increase interaction with followers on Spotify. Eg:
• Change profile picture via the app.
• Notifications must be triggered if someone follows you/you follow someone.
• Ability to view who follows my Public Playlists.
• Catching up with the competition –
• Apple Music has launched lossless audio and spatial audio with Dolby Atmos.
Spotify will need to up its game as soon as possible in order to keep up with the constant need for
quality.

10. Improving Spotify
• Simplicity for the end-user –
• Maintain consistency by offering the same functionality in the desktop app and the mobile app. Eg:
• Ability to organize playlists by creating new folders.
• Maintain consistency by offering the same functionality in the iOS and Android app. Eg:
• The swipe features on a song exist in the iOS app but not on the Android app. The two operating
systems must have the same functionality to offer a seamless transition in the event that the user
switches OS.
• Security –
• Users should be able to block users they do not want to interact with for a safer experience.

11. Impact - Complexity Matrix
Solution Impact to the user Complexity to build
Spotify Share High Medium
Spotify Profile Low Low
Lossless Audio High High
Consistent User Experience Medium Low
Security Medium Low
• From the above table, by weighing the factors of impact to the user and complexity to build, the
improvement features can be prioritized as:
1. Lossless audio 4. Consistent User Experience
2. Spotify Share 5. Spotify Profile
3. Security

12. Tracking Success Ratio
Tracking the success of the feature released is imperative for the growth of the product.
The following KPI’s can be used –
1. CSAT (Customer Satisfaction Score)
2. NPS (Net Promoter Score) –
3. Customer Retention Rate (CRR) –
4. Churn Rate (CR) –

13. Tracking Success Ratio
1. CSAT (Customer Satisfaction Score) – The CSAT score measures the overall level of content
or discontent of a user about a specific product or service feature. An increase in this
metric would show how satisfied the customer is with the new feature release.
2. NPS (Net Promoter Score) – The NPS metric measures the number of loyal customers who
are likely to recommend a product (promoters), and those customers who hate it
(detractors). An increase in the NPS score would show that the newly released features
have contributed to the overall satisfaction of the product.
3. Customer Retention Rate (CRR) – The CRR is the percentage of customers who stayed with
the company after a certain time period. If the retention rate increases, this would show
that users are happier with the improved experience and continue using the app.
4. Churn Rate (CR) – The CR is the percentage of customers who have stopped using the
product. If the churn rate has decreased, it can be attributed to the new feature releases.

14. Thank you