Building and maintaining brand loyalty is crucial, which is why music streaming service launched its new “Discover Weekly” feature.
See, a repeat customer spends about two-thirds (approximately 67%) more than a new one. Consequently, building brand loyalty with just 5% of a brand’s customers leads to an increased average profit per custom of between 25% and 100%. For millennials — who Spotify mainly appeals to — the most important driver of brand loyalty is a great product, as 77% of surveyed millennials recently indicated, with brand recognition and trust coming in at second with 69%.
When digital agencies need an innovative way to revamp their brand development strategies, they often go back to their roots, and try to tool around with their algorithms, which is more or less what Spotify has done.
The music streaming service recently launched a new feature called “Discover Weekly.” Its innovative design uses the history of songs a person has been listening to lately, and automatically generates a playlist that’s specifically tailored for them.
Each Monday, the innovative playlist updates with new songs. What’s interesting, though, is that Spotify’s algorithm doesn’t simply pull songs from “similar artists” of the last few bands a user has been listening to. It takes their music as a foundation, and then also takes into account the taste of other users who also enjoy similar music to what the person’s been listening to. This method is a lot more organic than simply suggesting a song because it falls into a sub-genre the user likes, or because it may use major chord progressions like other songs the user likes, which is what other streaming services do, such as Pandora.
The playlist is geared more towards musical discovery, as it offers stuff they’ve never heard of by artists they only be vaguely acquainted with, or even introduces them to entirely new artists. In order to optimize the experience, Spotify users would be wise to save songs they like, rather than simply just listening to them, so that the feature has more to work with.
If you don’t have the new playlist, don’t worry. Discover Weekly is supposed to be rolling out over the course of the next few weeks, so it’s coming.