How Spotify uses AI to deliver personalisation

Hannah Gallop

Hannah Gallop

Communications

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As 2024 draws to a close, it’s time to enjoy one of our favourite times of the year: the release of Spotify Wrapped.

Spotify has solidified its place as a frontrunner in the streaming world. With an extensive library of over 100 million songs and 350,000 audiobooks, the platform holds more than 30% of the market share.

But why do its 626 million users keep hitting play and coming back for more?

The answer lies in Spotify’s ability to deliver hyper-personalised experiences. By harnessing AI and machine learning to customise its offerings around individual preferences, Spotify redefines what it means to engage and connect with an audience.

Why does personalisation matter? 

In today’s saturated marketplace, personalisation has gone from being a nice extra to a ‘must have’. With 71% of customers expecting tailored experiences and 76% feeling frustrated when they’re not delivered (according to McKinsey), businesses that prioritise personalisation have a clear advantage.

Through tailored playlists, song recommendations, and curated content, Spotify delivers exactly what its users didn’t know they needed, resulting in deeper engagement and long-term loyalty.

Businesses can hit the right note by following Spotify’s lead and weaving personalisation into their marketing strategies. 

What you can learn from Spotify

At the heart of Spotify’s success is its ability to make every user feel seen and understood. From curated playlists like Discover Weekly, which offers a personalised selection of tracks, to the reflective and engaging experience of Spotify Wrapped, the platform goes beyond simply delivering content.

Spotify also shows that personalisation is an ongoing process. It learns, evolves, and adapts with every interaction. This continuous improvement keeps the experience fresh and dynamic.

Make discovery effortless

Spotify’s Discover Weekly playlists offer users a curated selection of new music every Monday. It’s a simple yet powerful way to keep users engaged and excited about the platform.

Whether it’s a personalised product recommendation, a tailored email, or a unique piece of content, make sure it’s easy for customers to find value in what you offer.

Use data to understand, not just analyse

Spotify doesn’t just collect data; it uses it to better understand its users. From their listening habits to their moods, every interaction enhances the platform’s ability to deliver.

Data is the key to understanding an audience’s needs, desires, and behaviours. The better you understand them, the better you can serve them.

Keep improving

Spotify’s AI gets smarter with every interaction, constantly refining its recommendations. It’s a virtuous cycle: more data, better personalisation, higher engagement. Everyone’s a winner.

Businesses should view personalisation as an ongoing process. The more you refine your approach, the more effective it becomes.

How Spotify uses AI to perfect its personalisation

Spotify’s ability to create ultra-personalised experiences lies in its use of AI. Here are some of the methods they deploy:

Collaborative filtering 

Spotify analyses user listening habits and compares them with others. If two users share similar tastes, Spotify assumes they’ll enjoy the same music and recommends it accordingly.

Collaborative filtering can be applied to purchase data, website activity, or engagement patterns to suggest products, services, or content tailored to individual preferences. Think product recommendations on e-commerce sites or curated email marketing campaigns.

Natural Language Processing (NLP)

NLP helps Spotify understand what people are saying about artists, songs, and genres online. By analysing text from social media, reviews, and blogs, Spotify picks up on trends and public opinions. This helps it recommend music that fits what’s popular or aligns with listeners’ interests.

Brands can also use NLP to track online conversations, identify trends and understand matters most to their audience. This allows marketers to create messaging that feels timely, relevant, and in tune with their audience’s needs and interests.

Audio modelling

Spotify’s audio models dive deep into the characteristics of each song: tone, tempo and lyrics to recommend music that “sounds like” a user’s favourites. This technology ensures even lesser-known tracks reach the right ears.

Similarly, businesses can analyse product attributes, customer reviews, and usage data to recommend items that align with a customer’s preferences or past purchases.

Why personalisation is the competitive edge your brand needs

Spotify has built customer loyalty, boosted engagement, and secured its place as a leader in the streaming industry by creating experiences that feel uniquely tailored to each individual. 

For businesses, this highlights a clear opportunity to harness personalisation as a way to forge meaningful connections with their audiences. Whether by leveraging AI-driven tools or using data more effectively, the objective remains the same: making every customer feel as though your brand was designed with them in mind.

At Barques, we specialise in helping businesses harness the power of personalisation through bespoke marketing strategies. From data-driven campaigns to tailored digital solutions, we ensure your brand connects with your audience in a way that feels authentic, relevant, and impactful. 

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