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How Spotify Wrapped Used Zero-Party Data for Good

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Spotify wants no introduction, the world’s most popular audio streaming subscription service has been round for years now, and this previous week took social media by storm. On December 1st, Spotify launched their annual “Spotify Wrapped” marketing campaign—a 12 months in evaluation marketing campaign personalised to a person’s account. 

Featuring all the things out of your prime 5 artists to most listened to podcasts and songs, the marketing campaign highlights a buyer’s knowledge in a enjoyable, participating, and, most significantly, individualized manner.

The outcomes of such a customized marketing campaign converse for themselves. Users flocked to social media to share their findings and Spotify has seen a 31% jump in app downloads

Spotify is the most recent firm that’s prospering from nice knowledge assortment and leveraging that knowledge to create individualized person experiences. Some of this personalised expertise just isn’t new for Spotify—they’ve been utilizing this knowledge, mixed with AI, to create curated playlists and provide track suggestions for years. But it’s the success of their 12 months in evaluation marketing campaign that has entrepreneurs taking discover. 

With a lot success coming from the Wrapped campaigns—over 90 million people engaged with Spotify Wrapped in 2020—Spotify has constructed campaigns that replicate this distinctive, personalised expertise on a more frequent basis

Spotify hit a candy spot. By being clear with knowledge assortment and utilizing it to create an individualized marketing campaign, Spotify acquired present prospects to interact with their app and new prospects to obtain it. But, how can this success translate to different manufacturers? What can advertising and marketing groups study from this knowledge assortment dynamo?

5 Takeaways from Spotify Wrapped

As entrepreneurs, there’s quite a bit we will study from Spotify’s campaigns, apart from our favourite music. The most vital learnings are: 

  1. Consumers crave a customized and differentiated expertise
  2. Sometimes the most effective knowledge comes instantly from the person
  3. Consumers are joyful to share their knowledge in the event that they know worth will come from it
  4. Personalization that highlights habits builds a connection and will increase engagement
  5. Interactivity brings shoppers into their very own expertise, resulting in prolonged loyalty

Personalization isn’t a nice-to-have, it’s a requirement for fashionable entrepreneurs to attach with customers. Consumers anticipate an individualized expertise—91% are more likely to shop with brands that present affords or suggestions which might be related to them. And, when you’re fearful about knowledge assortment, it’s vital to take a look at whether or not you’re including worth with the info you accumulate—90% of shoppers are willing to share personal behavioral data with firms for a less expensive and simpler expertise.

Leveraging Zero-Party Data for Personalization

While Spotify might have the highlight proper now, all manufacturers—irrespective of the trade—can profit from leveraging knowledge in an analogous method to create personalised experiences.

Mint, a FinServ firm, launched their year-in-review marketing campaign analyzing and sharing how customers managed their funds over the 12 months. And Zillow, an actual property market, has each a month- and year-in -review marketing campaign—all enabled by sensible knowledge assortment and leveraging that knowledge of their communications. 

Zillow Zero-Party Data

Zillow’s month- and year-in-review messages hold customers concerned of their expertise.

Zillow’s month and 12 months in evaluation messages hold customers concerned of their expertise. 

While these personalised campaigns will be a number of the most participating, they can be a number of the most difficult to create, particularly with out the appropriate tech stack to assist these. To get to this degree of personalization, it’s vital to ensure you have the technological basis set. When assessing your martech stack’s skill to offer the visibility wanted to personalize the client expertise, hold this in thoughts:

  • Do we now have a knowledge warehouse or CDP that retains all of our knowledge in a single centralized location?
  • Is our advertising and marketing automation platform in a position to combine with our knowledge administration instruments to present our entrepreneurs a 360-degree view of the client profile?
  • Is our knowledge up to date in real-time to stop any irrelevant messaging reaching our prospects? 

Just a few years in the past, Zillow was utilizing a legacy advertising and marketing automation platform so when it got here to leveraging the zero-party knowledge they collected to construct out and ship a year-in-review marketing campaign, the method took a complete 12 months of cross-functional work.  

After re-evaluating their processes and tech stack, Zillow switched from their legacy supplier to Iterable so they might simply leverage knowledge and pace up the execution of campaigns with out shedding time utilizing pointless sources. 

Upon switching, they began a month-in-review marketing campaign as they now had the bandwidth. The new campaigns took 4 days for one email marketer to finish and at a month-to-month frequency allowed for exponentially extra participating touchpoints.

With the appropriate tech stack in place, sure, you achieve visibility right into a buyer’s full behavioral knowledge profile, however you additionally make immense positive aspects in ease of use for your crew to carry out at their highest degree whereas constructing a more in-depth connection together with your prospects.

Give the People What They Want

Spotify’s Wrapped has proven us how shoppers crave a customized expertise, and are keen to share their knowledge for useful experiences—a theme changing into more and more vital as we method a cookie-less world. While Spotify is the most recent firm to see dividends from their personalization efforts, all manufacturers have the power to learn from making a 1:1 relationship with prospects. 

Take Spotify Wrapped as a chance to be impressed. Analyze the zero-party knowledge you presently accumulate and look for possibilities to get customers concerned of their journey together with your model. Your LTV will thanks. 

For extra about easy methods to degree up your personalization, take a look at our Personalization Playbook sequence highlighting the core pillars of personalization: User Segmentation, Lifecycle Mapping, Workflow Building, and Dynamic Content. 

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