Spotify 20% Growth Plan: Choose the Target Metric, Size the Levers, Prioritize Bets

Suppose you are a product manager at Spotify, and leadership asks how you would grow Spotify by 20%. Explain what exactly you would grow, where that growth would come from, and which initiatives you would pursue to reach the target. ```hint Pin down the number first A 20% target means very different plans for listeners, paying subscribers, revenue or listening time. Fix which one you are moving, then break it into the factors that produce it before brainstorming new features. ``` ### Clarifying Questions - Which number should rise by 20%: monthly listeners, Premium subscribers, revenue or listening time? - Over what time frame, and is the 20% the total target or an increase on top of the trend Spotify is already on? - Are all markets in scope, or should the plan focus on particular regions? - Are new content types and acquisitions open options, or should the plan rely on the current product? ### What a Strong Answer Covers - Choosing the growth metric and horizon, with a reason, before proposing ideas. - Breaking the metric into drivers (acquisition, free-to-paid conversion, retention, price and plan mix, advertising) and sizing what each could contribute. - Listener segments and specific initiatives aimed at the largest drivers, prioritized by impact, confidence and time to deliver. - Checking that the plan plausibly adds up to 20%, with guardrails such as churn, royalty costs and listener experience. - Weighing quick funnel improvements against longer bets on new content or formats. ### Follow-up Questions - Your plan relies partly on a price increase. How would you test it, and what result would make you stop? - An executive proposes live sports audio commentary as the way to hit the target. How do you evaluate it against your plan? - How would the plan change if the goal were 20% more monthly listeners rather than 20% more revenue?