Week 11 - Chapter 12 Business Analytics

 Business Analytics





Introduction

Data is the new DJ. In the ever-evolving music industry and streaming services, radios are being tuned out. Yet with millions of songs at our fingertips, choice paralysis stings listeners. This week, Spotify is playing to the tune of Business Analytics, to transform how we discover, listen and engage with music. Through combining descriptive, predictive, and prescriptive analytics, Spotify personalises the music experience for nearly 300 million users globally. The Post this week explores how Spotify engages, not only listeners, but also Business Analytics, to solve its core business weaknesses and deliver value through intelligent, data-driven recommendations. 

Main Reflection

A few questions come to mind when considering Spotify's user retention and engagement, their Cold-Start problem and their recommendation accuracy struggles. With so many music options available, how can Spotify keep users engaged and loyal? How can the platform recommend brand-new or obscure music that users haven't discovered yet? How can Spotify ensure its suggestions reflect users' preferences and keep growing with them?

We need to consider data collection when considering those questions. Spotify collects user behaviour data, including skips, plays, playlist creation, song duration played, device type, and physical location; as well as song characteristics like genre, tempo, instrument, vocals, and emotional tone, and they also consider age, demographic, gender, and region. 

One additional difference between other music services and their opaque recommendation engines is that Spotify explains its decisions like "because you listened to..." or "more like..." which builds user trust and increases the likelihood of engagement. This form of prescriptive analytics turns data into informed action, aimed at listeners to develop an in-depth, seamless music experience. 

Conclusion

Spotify's domination over listening services isn't just due to its vast library of songs and podcasts. It's driven by an analytics-first mindset that creates personalised, dynamic experiences for every user by blending descriptive insights, predictive modelling, and prescriptive recommendations. Spotify solves core business problems like user retention, content discovery and recommendation accuracy with ease. 

References 

Michigan State University. (2024, March 27). What is business analytics? Definition, aspects and uses. Retrieved from https://www.michiganstateuniversityonline.com/resources/business-analytics/what-is-business-analytics/

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