Business

Why is Spotify Wrapped so Successful?: Consumer Data For the Consumer

by

the marketing team

In the digital age, consumer data has become the currency that fuels the engine of modern business. It follows us everywhere: from targeted advertising to personalized recommendations - and we follow it too, leaving behind a trail of functional information for companies to harness how they see fit.

This machine keeps on churning in the background of everything we do, both as consumers and industry professionals, helping marketers, product engineers, and developers better meet the needs of their customers, thus increasing profitability and user engagement. 

Meanwhile, consumer data is a tricky topic with, well, the consumer: Reject all cookies, thank you very much

And it’s hard to blame them, no? With headlines like “company I liked misuses customer data” or “giant company everyone knows sued for a bajillion dollars over consumer privacy breach”, the thought is unsettling at best. There aren’t a lot of heartwarming news stories touting the integrity or righteousness of consumer data. On top of that, the social and political climate in the world is an added layer to the trust consumers have of establishment (not the establishment, but all establishments). 

And all that to say, marketers know that consumer data is the holy relic of success. We passionately believe in the power of it for sustainable business growth, but also for the customer too. Consumer data makes the user experience better; don’t they want that?

Spotify has not only managed to, but triumphed at revolving an entire marketing campaign around consumer data. 2023 was Spotify’s 10th annual Wrapped (until 2016, it was referred to as “year in review”) and its anticipation and response only continues to grow. 

There are a few things that companies should take away from Wrapped - and they’re important. 

The Consumer is The Campaign

Effectively, we love mirrors. It’s why it can be so difficult to stay on-brand or mimic a tone that isn’t close to our own. We see ourselves in everything. How can we not? Afterall, we are all the protagonists in our own lives. 

Wrapped puts the consumer at the very center of the campaign. It isn’t about Spotify’s USP. It isn’t about how Spotify can help you. There’s no underlying message of why you should use Spotify or keep subscribing to their service. There isn’t even a promotion when this is their most engaging campaign they will likely do all year. 

The campaign is you.

Consumer Data, for the Consumer

If we think consumer data is tricky, purchase data can be trickier. With socio-economical uneasiness accompanying mind-numbing inflation, purchase data isn’t a nostalgic look back for most. 

I don’t want to know how much deodorant I purchased this year. Please, don’t tell me. What I do want to know is how many different scents of deodorant I tried this year. Customers know that they bought deodorant. They know that you know that they bought deodorant - and they don’t want to be reminded about how much money they spent doing it. 

What they don’t know is how choosing Ocean Breeze over Lavender Fields in Provence makes them different. 

Belonging

The need for belonging is a fundamental part of what it means to be us. There are many arguments about how the internet and social media impact our feelings of loneliness and solitude. Social media and the internet, in theory, should make us more connected than ever, but does it? 

Spotify puts social sharing at the heart of Wrapped and its users can share about themselves in a low-risk situation. We can laugh when an unexpected colleague finds Taylor Swift as her number 4. We can be shocked by how many minutes another colleague had their airpods in. 

Whether we belong for the connection or for the vanity isn’t in question here - we get to belong, no matter our why. 

The Religiosity of The Self

Every “what should marketers do in insert-year-here” article will tell you to create a quiz, and with good reason. What’s more empowering than sharing “I learned a lot about myself”? 

Spotify Wrapped does something that the basic “what type of chair are you” quiz can’t do. It tells you who you are without asking you anything. It shows you a little bit of who you are and how you have changed over the course of time. 

And beyond seeing a glimpse of who we are through someone else’s eyes, we’re at the same time validated for every decision we made. 

You become even more yourself when you interact with Wrapped. 

So, what can marketers take away from Spotify Wrapped? 

We can ask ourselves a few things about our campaigns. 

Is the customer the essence of our campaign? 

Are we telling them how they helped us… or are we celebrating them for how they have helped themselves?

 

Are we thoughtfully driving opportunities for connection in the campaigns that we create?

Are we, beyond our USPs, showing our customers who they are? 

And after all is said and done, do our marketing campaigns reward our brand, or do they make our customers shine?