CRED: The credit-worthy club
Disclaimer: All the stories I share are my own hypothesis. I do not intend to harm or object any person, product, job, or community; intentionally or otherwise. Hope you enjoy a good read!
Cred has created an ecosystem of credit-worthy users and classified them in a club. Credit cards have enabled us to live a buy first, pay later lifestyle and now we can afford the luxury, have increased paying capacity and get easy access to loans and EMIs while availing accelerated rewards, superior travel benefits, exclusive shopping deals etc.
Often, people who use credit cards dive into huge credit card debts which they cannot repay on time leading to late fees and low credit score. This affects their ability to lend money from financial institutions, to buy a house or car or starting their own business.
There comes CRED. CRED rewards their customers every time they pay their credit card bills through CRED through CRED coins which they can use to win exclusive rewards or get special access to curated products and experiences.
Features of CRED:
- Credit card bills reminder and instant bills settlement.
- Category-wise spends analysis, detection of hidden charges and real-time tracking of the credit limit.
- Gamification and variable rewards using CRED coins to win exclusive rewards and cashbacks.
- CRED store where members can select products and experiences at a special price.
How CRED is building a community of credit-worthy people?
CRED doesn’t believe in masses, but building a community of people having a good credit score. As their domain also suggests, https://cred.club, it’s a club of exclusive members. CRED’s user persona is very simple and straightforward — people who pay taxes and have a good credit score. CRED focuses on creating a delight for them. The main reason why CRED is being successful despite targeting the upper masses is that the existing user behaviour is not hindered and the rewards are provided for very basic stuff. The user is buying stuff, paying bills, paying rent and the user is rewarded for being punctual. That’s like, a teacher giving 5 stars on homework because the assignment was submitted on time. This behaviour is appreciated by the user and he/she is now concerned to pay the bill on time to get the reward. CRED triggers work brilliantly for this.
Not only this, people who have been avoiding credit cards for long are now buying credit cards to become members of this exclusive club.[1]
CRED is not only benefiting its members but in a way, it is also helping the small startups grow and create visibility in the market by providing their customers rewards from these companies. This way, the users use the company’s products and trust is established. On top of this, CRED gets paid for this so WIN-WIN for everyone.
The data that CRED collects is invaluable. CRED knows every member’s paying capacity and buying behaviour which it can use to any extent. Although CRED is committed to not sell this data to any 3rd-party apps, it can use this data to provide P2P loans, insurance, mortgages, P2P leasing etc. which CRED is aiming for and has already started the work on it.[2] It is needless to say that applications on this data are endless and CRED has a huge advantage to use it to understand and customize user behaviour.
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