Chatify: Spotify’s New Way to Chat



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Chatify: Spotify’s New Way to Chat

Joseph Sisti, Natasha del Amo, Rachel Brenner, Eric Chuang, Alicia Rivera

December 5, 2016

PRL 215


Final Project

Table of Contents

Organizational Outline…………………………………..page 2

Organizational Background and Need………………….page 3

Goals and Objectives……………………………………..page 3

Audiences…………………………………………………page 4

Tactics……………………………………………………..page 6

Evaluation………………………………………………...page 11

Appendix………………………………………………….page 12

Sources…………………………………………………....page 23

Organizational Outline

Founded in 2006, Spotify is a digital on-demand music streaming service that allows users to customize their own playlists with specific songs. It provides listeners with one of the easiest to browse applications that is available for mobile and computer use. The website is totally legal to use and allows artists another way to share music with their fans. Its mission is to “Give people access to all the music they want all the time – in a completely legal and accessible way” (Twitter, 2011). Spotify offers both free and paid services for its customers, but pushes the perks of a paid service on its listeners. The free service allows people to make playlists on both a mobile and laptop device, but does not allow one to pick a song; it must be on shuffle. The free service also adds advertisements every few songs that the listener can’t skip. The paid service offers everything that the free service does, but allows customers to choose and request whichever song is of interest and allows customers an ad free listening experience. The cost of this paid service is $0.99 for the first three months, $4.99 per month for students, $9.99 per month for a regular user, and $14.99 per month for a family package of up to five users.

The company is headed by Co-Founders Dan Ek (CEO) and Martin Lorentzon (Chairman of the Board). The rest of the executive team is comprised of Gustav Söderström (Chief Product Officer), Jeff Levick (Chief Revenue Officer), Katarina Berg (Chief Human Resources Officer), Barry McCarthy (Chief Financial Officer), Seth Farbman (Chief Marketing Officer), Oskar Stål (Chief Technology Officer) and Stefan Blom (Chief Strategy Officer & Chief Content Officer). The team is divided between the company’s two headquarter locations in London, U.K. and Stockholm, Sweden.

Spotify is a privately owned company, so there one can’t buy stock in the company. As of 2015, Spotify was worth $8.4 billion, and according to consequenceofsound.net it is nearly double the value of Pandora (2015). It makes money from advertisers and subscribers, but have to pay a large chunk of its earnings to pay for the rights to all of the songs. Its competitors include, but are not limited to, Apple Music, Pandora, iHeartRadio, radio, etc. What differs Spotify from its competitors is that Spotify is an extremely successful company that knows its consumer inside and out. It recognizes the power of on-demand services in this day and age, and successfully was able to execute this idea in a way that forever changed the music industry. Because of the company’s success, many major radio outlets are suffering to keep the volume of viewers they once had.



Organizational Background and Need

Spotify has created a new feature called Chatify which allows users to have the experience of listening to music with family and friends that they are not physically with. Chatify will connect users with one another to mutually create, edit, build and share playlists online while simultaneously chatting. With Chatify, users can discuss the music and rate songs and playlists based on personal preference. The feature will rely on the user’s Facebook friends list as the most immediate way to connect with others and join chat rooms with up to three other people. This feature will only be available to premium subscribers of Spotify. Chatify will go live starting Dec. 1, just in time for the holiday season.



Goals and Objectives

  • Acquire unique users to Chatify.

-10,000 people

-First month after feature launch



  • Acquire friend referrals for the product after two months of its debut

-5,000 friend referrals through HTML email hyperlink

-Two months after launch



  • Provide a satisfactory experience with Chatify

-Specifically at least a 3 star rating

  • Ensure user retention to Chatify

-60% of users return to Chatify

  • For Chatify to connect users between countries

-Targeting North America and Europe

Audiences

TARA: Tara is a twenty-year-old female student who relies on her parents income to pay for her expenses. Although she does not have a full-time job yet, she makes about $4,000 a year from her part-time on campus jobs at school. She currently resides in Syracuse, NY where she attends Syracuse University, but calls Hinsdale, Illinois, a suburb outside of Chicago, her home. She is high school educated and is working to get her bachelor degree in Broadcast and Digital Journalism. Her family consists of her mom, dad, sister and brother.

Tara is going to Spain in the spring and will be traveling to many other countries during her time abroad. Her challenges include not always having access to wifi while abroad. This creates issues, because without wifi or data, she will not have constant access to social media or Spotify as other students will. When she does have access to social media, though, she likes to use Twitter, Instagram, Facebook, Snapchat and YouTube. Otherwise, Tara always checks her student email address when she can and also pays close attention to pop-up ads when on the web. Words and phrases that may resonate with a customer like Tara are student-rate, on-demand, free, playlist, party music, school, students, sports. Images that may resonate with her include, parties and students studying in the library listening to music with headphones. She would likely click on and listen to a quick video ad if she comes across one. Any other social media post must be short and to the point if Tara is going to read it.



SCOTT: Scott is a forty two-year-old male father. He works as a lawyer making an estimate of $250,000 a year. He currently resides in his home in a suburb outside of Boston, MA. He attended Bentley University for his undergraduate degree and attended law school at Harvard University. He has a wife, two sons and a daughter.

Because of Scott’s age, many of his colleagues including those who have a Facebook profile are not on Spotify to share music and chat with friends, if at all. This may pose a challenge to Spotify to target this new feature to Scott’s age demographic. Regardless of his friends, Scott has a Facebook profile that he uses daily. Other ways to reach Scott may include by email, newspaper, TV news, radio ads and billboard ads on the highway. Words and phrases that may resonate with a customer like Scott are weekends, beach house, commuting and family time. Images that may resonate with him include coffee, car, traffic and an office. He is likely to click on a video no matter where it is posted (i.e. his email, his Facebook profile and internet ads). He is also likely to read long articles when it comes to platforms such as newspapers and emails, whereas he is likely to read quick posts on platforms such as Facebook.



MATTHEW: Matthew is a twenty six-year-old male bachelor. He is an employee at Spotify in New York City as a technician and makes an estimate of $70,000 per year. He currently resides in an apartment in Brooklyn. He attended USC for his undergraduate degree in computer science. Although he lives with his two roommates, Matthew has a mom, dad, and two sisters.

Matthew’s main goal is to share what a subscription to Spotify Premium offers with his friends, as well as share why they should use Spotify over various competitors. This will allow him to spread the word to other potential customers of the target demographic to use the product. Matthew actively uses Instagram, Twitter, Facebook and Snapchat, but also pays attention to ads in the subway, on the radio and those that are sent to his email. Words and phrases that may resonate with a customer like Matthew are promotion, friends, working out, dating bars and sports. Images that may resonate with him are coffee, subway car, commute, office, bar, friends and the gym. Matthew would click on a video message, but most likely if it is short. Depending on the situation, Matthew will read different content whether it is either short or long. For example, if he is commuting on the subway, he will be more likely to scroll through content that is short like Twitter. If he is at home in his apartment he will most likely be more willing to read longer content such as articles.



Tactics

Spotify is a digital on-demand music streaming service that allows users to customize their own playlists with specific songs, and as a digital platform, it aims to be on the forefront of media innovation. Our brand is fresh and young, and our Chatify feature is edgy, timely and social-oriented. As of April of 2015, 21% of Spotifylisteners were ages 11 to 18, and 26% of Spotify listeners were ages 18-24 (Statista 2016). With such a young demographic, we have a non-traditional take on promotion of Chatify to stay true to our brand, our services, and our audiences. Our global outdoor ad campaign launched in November is a great example of the innovation and strategy that can be expected from our Chatify promotion, where we use data and existing resources to humanize our technology in a way that is as unexpected as our services are useful.

When considering internal communication methods and promotion, Spotify notes that informing employees of the Chatify feature before the campaign launches from the CEO would be very effective in providing employees with well-rounded information about the feature that they can then promote. By having CEO Dan Ek write a blog post about how the feature came to be, the intentions of distinguishing Spotify from Apple Music and Tidal and capitalizing on pop culture tidbits such as BitCoin, Spotify presents employees with a great platform to gift Spotify Premium featuring Chatify to family or friends for the holidays and begin influencing their social networks. The messages relayed in a CEO blog are best for a personal touch to the announcement, containing information that most media will not directly receive, but can effectively inform how employees conduct their own promotions. The CEO blog will be released 2 days before the formal launch and our social media and website push so that employees can promote to their own networks in an exclusive fashion. Our short time-frame of promotion will start with this CEO blog, and a content calendar, Table 1, will be able to keep us on track to maintain an effective promotion season and ensure our key audiences are targeted.

Contrastingly, we at Spotify cannot be as forthcoming in our external communications, so when employing HTML emails, social media such as Twitter, Facebook, Instagram and Snapchat, a web page, and pitching stories to reporters, we will use innovative practices to suggest our goals and influence our target audiences. We are launching Chatify during the holidays, and starting the promotion push on Dec. 1st to provide a way for Spotify to inject ourselves into the holiday conversation without it being out of place on social media, and promote the use of Spotify to connect social networks during a time spent with friends and family. The email will be released on the launch day so that it hits emails as subscribers are thinking about present-giving, as well as renewing their own subscriptions. It is also a time before students are going abroad and they are feeling worried about leaving university and their friends, and this will harness those emotions during this holiday time period as well.

To effectively promote Chatify, there will be an extensive amount of cross-platform promotions and interaction to maximize resources and audience reach, as well as platform-specific content that will efficiently use each social media platform or promotion tactics’ strengths, shown through Table 2. We understand that every social media platform serves different purposes and are more appropriate for specific types of media content, which is why we are distributing some content only on certain platforms while others will be available across all platforms. All promotional content for Chatify will belong under the main Spotify social media accounts as the feature is an extension of the established Spotify brand. All promotions will utilize the same keywords as a point of search optimization and staying on message, so most, if not all posts will mention “Holidays” “Playlists” “Chat” and “Connect”, and the hashtag #Chatify will be used across all social content.

Platform-specific promotion:

YouTube:

We will create a how-to video on the new Chatify feature with a step-by-step walkthrough of newly added features. This will allow for a smooth transition for our users to familiarize themselves with Chatify by offering strong and thorough visual guidance. The video should be between two to four minutes to ensure that it is succinct, but easy to comprehend.



Instagram:

The instagram content, illustrated by Table 3, would be very similar to Twitter content, keeping our messages short and to the point, while using keywords such as Chatify, Collaboration, Songs, and Friends, as hashtags that will further push our message and app into the Insta-sphere. We would use videos that were similar in tone to our Snapchat ads and Discover videos, short and to-the-point, and showcasing Chatify.



Snapchat:

Snapchat’s “Discover” feature allows users to watch short-form content from a variety of media outlets including NowThis, National Geographic and Refinery29. To remain cohesive with our Refinery29 pitch, Spotify will produce ten second how-to videos on the Refinery29 page to deliver a “quick and dirty” tutorial on using Chatify. Thousands of viewers watch these companies’ Snapchat stories every day. By utilizing this widely popular social media platform, we will be able to reach Millennial audiences who are likely to be interested in learning more about Chatify as they are our target audience.

Starting Dec. 1, begin the “24 Days of Jingle Bells” Snapchat campaign in which Snapchat users can choose a filter designed by the Spotify team. The filer will dress the user up as Santa Claus on Snapchat with “Jingle Bells” playing on the background. The text will read “#Chatify” at the bottom of the filter. This filter will be available on the launch date of Chatify and will serve as a seamless guerilla marketing tactic that is relevant for the holidays and interactive.

Facebook:

In an effort to encourage Spotify Premium users to interact and engage with one another on the Chatify platform, we will design a playlist contest in which users submit their creative, themed playlists to us and we pick the top 3 that stand out the most. The three winning playlists will be featured on Spotify’s main page as well as our social media platforms. In addition as an extension to our collaboration with Refinery29 on the Snapchat platform, Refinery29 will also publish an article featuring the three selected playlists as a native advertising tactic. To enter the contest, users need to first create the playlist with at least one other Spotify Premium user (up to four per playlist) that has a cohesive theme of songs and a creative title. Retrieve the playlist’s shareable URL and share it on Facebook through the Spotify app with the hashtag, #ChatifyContest. We want our users to show off their musical taste by creating a collaborative playlist with their friends and family using Chatify.

Facebook new “Livestream” allows real time communication between Facebook users. Many companies have tapped into this marketing tactic because it is instantaneous and reaches audiences directly. Spotify will host a live Q&A and tutorial session in which members of the Spotify development team will clarify any questions that Facebook users simultaneously comment on the livestream. Anyone who likes the Spotify on Facebook will be notified when the livestream session happens and with over 12 million likes, we will certainly garner significant engagement and reach key target audiences who want what Chatify is and how to use it.

Pitch to Refinery 29:

Madeline Muxton, Associate Tech Editor. Madeline writes about all social media news, updates, and hacks, as well as how to use social media to make lives easier. She has written about apps to find cheap flights, explored the creativity of Instagram and Snapchat multiple times, and has even written about Spotify as recently as October. Madeline wrote about a glitch in the free version of the app, making sure to reach out to Spotify and clearly marking the company’s statement on the malware at issue. Madeline’s affinity for tech would provide a great base for the novelty of Chatify, and her knowledge of Spotify’s structure and services could be tapped by appealing to a continuous story and brand new concept that no other platform has attempted yet. Her Twitter and Instagram following is close to 1,000 on each platform, and she interacts frequently with those who mention her, making her a great target due to her ability and willingness to engage with not only the public but perhaps brands themselves in a less static pitch. Buxton would likely be best reached by an alternative pitch because of the nature of her beat, a traditional line of pitching would not be on message, for Spotify or for Buxton. A first way to reach out that could be incredibly effective would be through Twitter. A Twitter pitch from Spotify to Buxton about Chatify would be shown through Twitter Pitches A and B in the appendix.

We will also create a Snapchat Spotify ad, not unlike the many that Spotify already places, but it would be about Chatify, and Madeline as well as the Refinery Snapchat could get the ad as a video snap personally pitched to them, which would drive them to find out more information or contact Spotify. Refinery 29 has a Snapchat Discover, so the feature she may write could also be displayed on Snapchat, where a large audience for Chatify spends much of their time on their phones (Newberry 2016).

Evaluation

To evaluate the success of our campaign, we will use a combination of Hootsuite and Google Analytics relative to our set goal. We will use Hootsuite to evaluate the shares and likes of our posts on Facebook, Twitter, Instagram and YouTube, as well as our web page. With the help of Hootsuite, we can monitor social conversations and the expansion of referrals through social networks. We will work with Snapchat to gain metrics on our click-through rates of our Discover channel and ads. We will also use Google Analytics to determine the success of our goal to acquire 5,000 friend referrals and establish the regional demographics of Chatify users. We are going to specifically view the interactions between countries and states through Chatify.



APPENDIX
CEO Blog………………….page 13

HTML Email……………...page 15

Table 1……………………..page 16

Table 2……………………..page 17

Table 3……………………..page 19

Twitter Pitches…………….page 20

Web Announcement……....page 21


CEO Blog Post

Title: Chatify
Pick up your headphones, grab your phone or laptop, log into Spotify and start creating a playlist of your favorite songs. Why? Because on Dec. 1, you will be able to share this playlist with up to three friends with our most inclusive listening experience yet. Through Chatify, listeners will be able to view and listen to top songs and playlists that their friends are listening to in real time.

Is your friend traveling for the holidays? Thanks to Chatify, you can still enjoy listening to your favorite tracks together while also chatting about the music being played. It is time for Spotify to get ahead of the game by distinguishing ourselves from Apple Music and Tidal. With Chatify, we will be capitalizing on pop culture with features like BitCoin and Bitmoji.

This holiday season, we will be treating each employee to two Chatify promotion codes. This will give two people of your choosing early access to the feature and the opportunity to create a buzz about our latest technology. These promo codes will be given two weeks before our launch date of Dec. 1. As spokespeople of Spotify, we urge you to ask friends and family for feedback so we can continue to upgrade the software and remove all the kinks before our debut. Be sure to remind early users to rate the feature so we can reach our goal of maintaining a 3 star rating for overall satisfaction with Chatify.

It is important for each employee to understand our overall goal for Chatify: To allow users to connect with friends and be able to share and access music no matter where they are in the world. Whether they’re down the street, across the country or three countries away, we believe that all of our listeners should have the ability to create, discover, share and appreciate music all in one place.

Happy listening and chatting,

Dan


HTML EMAIL

Page 1 Page 2




Table 1: Content Calendar
screen shot 2016-12-04 at 11.54.19 pm.png

Table 2: Cross- Platform Promotion

Copy

Publish Date

Platforms

We are delighted to introduce a new Spotify Premium feature, #Chatify, available NOW! Chat with your loved ones this holiday season through #Chatify and create special playlists dedicated to them. http://bit.ly/Chatify
Twitter:

Introducing #Chatify, a new platform to collaborate on playlists while chatting through Spotify Premium! http://bit.ly/Chatify



12/01/16

Facebook

Instagram

Twitter


It’s the time of year to treat yourself and your family. Sign up for Spotify Premium TODAY to receive 20% off your monthly subscription- and check out our new #Chatify feature! http://bit.ly/Chatify
Twitter:

#TreatYourself with 20% off your monthly Spotify Premium subscription to celebrate the new #Chatify feature! http://bit.ly/Chatify



12/24/16

Facebook

Instagram

Twitter


spotify1.jpg

Source: http://www.adweek.com/adfreak/spotify-crunches-user-data-fun-ways-new-global-outdoor-ad-campaign-174826



12/25/16

Facebook

Instagram

Twitter


spotify2.jpg

Source: http://www.adweek.com/adfreak/spotify-crunches-user-data-fun-ways-new-global-outdoor-ad-campaign-174826



12/28/16

Facebook

Instagram

Twitter


spotify3.jpg

Source: http://www.adweek.com/adfreak/spotify-crunches-user-data-fun-ways-new-global-outdoor-ad-campaign-174826



12/31/16

Facebook

Instagram

Twitter




Table 3: Instagram- Specific Promotion

Copy

Publish Date

Platform

Plan your next road trip playlist collaboratively and simultaneously with your friends and family using #Chatify.

12/5/16

Instagram

Girl’s night out? There’s a playlist for that! Create, collaborate and share your personalized playlists to dance to the songs you and your friends want to hear. #Chatify

12/16/16

Instagram


Twitter Pitch A

“.@MadelineBuxton The best gift to give this year is Spotify so you can Chatify that dope present wrapping playlist you curated w/ your BFF”


Twitter Pitch B

“.@MadelineBuxton Chatify: chat + listen to music with FB friends at the same time within our app! Check out our page for more info or DM us”




Web Announcement

Chatify: Create, Discover, Share

Learn how you can chat with friends to discover new songs

through Spotify

Spotify has BIG news for our listeners all around the world. We’re excited to announce our new feature Chatify that will enable up to four listeners per chat to chat and share music one another from any country in the world. No other streaming service has done this before, and we’re excited to provide this feature to listeners so we can expand the way they access and share music.

Through Chatify, listeners will be able to view and listen to top songs and playlists that their friends are listening to in real time. By signing into Facebook, subscribers’ will be able to automatically have access to their network of friends. For those people that you may not be Facebook friends with, you can request to be granted access to their music profile.

Once you’re friends with someone, you can automatically chat them to discuss new music and top hits. Subscribers can mutually create playlists with friends or listen to already created content. There will also be a button included on the chat feature to rate songs based on musical preference.

We have also teamed with Bitmoji for our listeners to be able to rate songs and playlists within the chat feature. Users will be able to create Bitmojis that look just like them and customize phrases to enhance moods and emotions. These will be available to customize in Chatify for up to four people.

Spotify’s goal is to allow you to connect with friends and be able to share and access music no matter where you are in the world. Whether you’re down the street, across the country or three countries away, we believe that all of our listeners should have the ability to create, discover, share and appreciate music all in one place.

Chatify launched is now available, just in time for the holiday season! Now, you can connect with family and friends in a totally new and high tech way, that will allow you to stay connected with people you may not be able to see in person.

Spotify wants to hear from you! Be sure to rate Chatify on the app to show how much you love the new features. We want to hear all of our listener’s feedback, so be sure to check out the rate button underneath Chatify’s main tab.



Visit our YouTube channel to view a how-to video to learn how to access and utilize Chatify. Happy chatting!

Sources
Buxton, M., PM, O. 5., & Tech, L. •. (n.d.). Spotify Free Acted Up In A Dangerous Way Today. Retrieved November 31, 2016, from http://www.refinery29.com/2016/10/125494/spotify-free-malware
Newberry, C. (2016, August 24). Top Snapchat Demographics That Matter to Social Media Marketers. Retrieved November 28, 2016, from https://blog.hootsuite.com/snapchat-demographics/
President, B. S. (n.d.). U.S. Spotify users by age 2015 | Statistic. Retrieved November 26, 2016, from https://www.statista.com/statistics/475821/spotify-users-age-usa/
Spotify Crunches User Data in Fun Ways for This New Global Outdoor Ad Campaign. (n.d.). Retrieved November 30, 2016, from http://www.adweek.com/adfreak/spotify-crunches-user-data-fun-ways-new-global-outdoor-ad-campaign-174826
Twitter Status. (2011, November 30). Retrieved 2016, from https://twitter.com/spotify/status/141929408763142144?lang=en
@. (2015). Spotify is now worth more than the entire US music industry? Retrieved November 5, 2016, from http://consequenceofsound.net/2015/04/spotify-is-now-worth-more-than-the-entire-music-industry/

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