Cred has gained quite a lot of popularity in these years for being a somewhat Fintech giant aiming to create a community of elite people and profiting from the cream on the top of India. Cred, a Bangalore-based fintech startup founded by Kunal Shah in 2018 has rapidly risen in giving benefits to credit card users.
This article explores how Cred succeeded in the rather crowded fintech space using its tactics and marketing strategies.
Strategies Employed by Cred:
Exclusivity:
Cred focused on exclusivity and adopted an exclusive membership model, where users with a specific level of credit score are invited to join the platform.
This strategy helped Cred cultivate a community of creditworthy users, fostering trust and loyalty among its members., as well as creating cred feel aspirational.
Rewards: Cred, just like any other credit card company gained the consumer's trust by offering attractive rewards, such as cashback, discounts, and access to premium experiences. By making the credit card payment process enjoyable and rewarding, it was able to gather a massive consumer base and trust.
Data Analytics: Cred gained the upper hand from the competition by developing its analytics software making it much more advanced than the competition.
Cred was one of the only companies that would detect the other unnecessary credit card expenses the consumer was doing and notifying it of this credit created a loyal fanbase and gained a lot of attention, this feature was then copied by many companies later on
Partnerships and Collaborations: Cred forged partnerships with leading brands and many more associations and gave its users useful and powerful discounts to its user, again creating trust among the consumers.
I want to make something very clear, they weren't revolutionary or life-saving discounts these were nominal and useful discounts. What set Cred apart was the way they propagated their discounts and partnerships, we will learn more about it in the next part of the article.
Marketing Techniques Utilized by Cred
Reverse psychology:
Reverse psychology is a technique where you encourage someone to do something by suggesting they do the opposite. Instead of directly asking someone to do something, one might suggest they shouldn't do it, which can make them more inclined to do it.
How did Cred implement it? For example, it portrayed Rahul Dravid known for his peaceful and calm persona, this rings the bell of reverse psychology and the magic of consumer attraction occurs naturally
Referral Programs: Cred believed in the network effect and started giving its users incentives if they would refer the app to other people, this helped to create a massive customer base through which Cred could monetize.
Conclusion
Cred continues to grow, although it has run into a problem though it has created a massive customer base it is unable to monetize the audience it had, so it has created several other products, for example, Cred Up and others. It also plans to expand to other foreign destination
image credits: Wikipedia
Thanks for reading
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