Partnership Breakdown: Starbucks & Spotify

I couldn’t think of a better combo than coffee and music, whether it’s catching up with friends over coffee with some background beats, or a double espresso with some pump-up workout bangers getting ready for the gym! There’s no denying coffee and music are intimately intertwined.

That’s why the partnership between Starbucks and Spotify was such a genius collaboration and hugely successful.

Let’s breakdown the details of the partnership
The partnership included several key components. Starbucks integrated Spotify into its mobile app. This allowed customers to easily discover and stream music while in-store or on the go. Customers could also create custom playlists and save songs to their Spotify accounts for later listening.

The partnership included a custom Starbucks-branded Spotify playlist, which was updated regularly with new music curated by Starbucks' music team. The playlist was available to stream in-store, as well as on the Spotify platform.
Including a program to reward Starbucks' loyal customers. Customers who signed up for a Spotify Premium subscription through the Starbucks app received special benefits, such as bonus stars in Starbucks' rewards program and access to exclusive music content.

Why the partnership worked
Starbucks and Spotify both had strong brand identities that were well-aligned with the product they created together. Starbucks was already known for its emphasis on music in its stores, while Spotify was a popular music streaming service with a large and loyal customer base.
The collaboration leveraged the strengths of both companies. Starbucks provided its extensive network of physical locations, in-store technology, and customer insights, while Spotify brought its music expertise, user data, and content curation capabilities.

The partnership was successful because it provided a unique and valuable experience for customers. The co-branded music platform allowed Starbucks customers to discover new music and connect with their favourite artists while enjoying their coffee in-store. It also helped to further solidify Starbucks' reputation as a destination for music lovers.

What can we take away from the partnership?
Whether your company is a billion dollar unicorn or you’re a new startup, the foundations and principles can be applied to any business looking to grow their business through partnerships.

Aligning brand identities: The partnership aligned well with both companies' brand identities. Starbucks was known for its emphasis on music in its stores, while Spotify was a popular music streaming service with a large and loyal customer base. The partnership reinforced each company's brand identity and helped to strengthen their overall brand value.

• What complimentary brands currently align with your company?

• Why would these brands want to partner with you?

• What would a partnership look like?

Creating value for customers: The partnership created a unique and valuable experience for customers. By providing access to Spotify and a custom Starbucks-branded playlist, Starbucks and Spotify were able to create a differentiated experience that was not available through competitors.

• From the identified brands, what value between the two brands is created?

• How will this benefit both audiences?

Driving customer engagement: The partnership helped to drive customer engagement and loyalty. By integrating the Spotify music streaming service into its mobile app, Starbucks was able to drive more usage of its app, which helped to increase customer engagement and loyalty.

• If not engagement, what would a successful partnership mean?

This could be - More customers, subscribers, users, brand awareness and more.

Hopefully the above gives you some partnership ideas or framework that can help you in your next partnership exploration.
Get in touch with the partnar.io team to start executing brand-to-brand partnerships today!