CRED & ALTERING BEHAVIOUR DESIGN

 

Today, we will be discussing about altering behaviour design. Many companies like ola, jio, cred, pharmeasy follow this business strategy.



WHAT IS ALTERING BEHAVIOUR DESIGN:

Cash burn:

• Identify the problem
• Raise the fund
• Increase customers by enticing them with unbelievable offers.

Habituation: Customer find the problem very useful and efficient.

For example:

• Google maps users no longer have to remember a particular route for any place.
• Ola users no longer have to wait for cabs.

Irreversibility: When the product cannot be replaced from anyone's life.

Expansion and profit: When captured a significant amount of market share.
Example:
Jio:

• Identify internet accessibility as a problem.
• Spend 1.5 lakh crore to build a system solution.
• They entice the customer by giving unbelievable offers.

LET'S TALK ABOUT CRED:


Cred identified the Pain of credit card holders and they are:

• Hidden charges
• Late fees
• Extra interest

Implemented Solutions:

Cash burn: In 2018, cred has a build and system where there are:

• Transparency of all charges
• No extra hidden charges
• Massive cashback and offers.

In 2020 cred has 30 lakh customers and 20 percent of all premium credit card transactions are carried out by cred.

Habituation and irreversibility:

• Cred customers found it too easy and interactive to use the platform.
• The headache of finding the hidden charges and remembering their due dates, etc. all these problems will have been managed by the cred which leads to irreversibility from the cred platform.

Expansion and profit: Cred is yet to expand their customer base and to start making profits.





FURTHER EXPANSIONS:

• Cred already has tons of customer spending data in form CREDIT SCORES of their customer which help them in advertising to target particular peoples and whom to lend money.
• CREDIT SCORE is the score given to each customer when they borrow and when they return the amount. Less time to return the borrowed amount, better credit score or vice versa.
• Customers of cred are super-rich who buy rich products which ultimately profit for cred.
• In future, cred can make tax-filing easy for taxpayers, and this is a golden opportunity for cred.
• Cred might help their customer to rebate their taxes in an efficient process.
• Cred may become a full fledged bank with rich credit holders or borrowers or can be a successful money portfolio management platform.