Spotify, Airbnb — How did they made it right?

Airbnb

What made Airbnb successful?

Airbnb is a marketplace where travellers get to stay at the property listed on the site by the local hosts. Airbnb was established as AirBedAndBreakfast.com back in 2008 and has revolutionized the way people travel by focusing on building a community and not just a mere distribution platform.

• Airbnb started with one simple price strategy — price your offerings below the market average to undercut hotels and make your place stand out. Airbnb knew that people were willing to pay more for hotel rooms, so instead of competing on price, they competed on hospitality.
• Design for trust, design for everyone — Airbnb’s mission is all about making people feel at home — whether that’s during a stay with one of its hosts or on its app/website.
• “Made possible by the hosts” — Airbnb’s campaigns for hosts and marketing mix strategy has created and developed a system to attract new users while also retaining the old one

Spotify

What is Spotify’s strategy that made it so successful?

Spotify is an audio streaming platform, launched in 2006. It has revolutionized the field of music content and audio streaming.

• Instant on-the-go Music Access — Solves the problem of having to download music from various sources or resorting to piracy. A playlist is just a click away.
• Machine Learning for Recommendation (Principles for Designing ML-powered Products)- Spotify’s songs/playlists recommendation is an example of remarkable usage of Machine Learning to customize its user experience
• Simple pricing plan, having revenue streams through advertisements as well as premium memberships, enabling its expansion in countries favouring SVOD as well as AVOD distribution systems.
• Spotify’s different pricing strategies across different countries has expanded its ultimate mission.
• Expansion into various other forms of content like podcasts after delivering music.