Gentle Bamboo Solutions

What do you do with CRED points?

Hi,

Easily one of the weirdest startups right now is CRED. They give you points for paying your credit card bills. That makes no sense.

A very small percentage of Indians have a credit card. A smaller percentage of that number actually uses credit cards frequently. Paying credit card bills is not a problem as most banks have integrated that option into the netbanking app already.

Why is CRED so widely successful? How do they have so much money that they have been able to create so many silly ad campaigns with biggest stars of entertainment and sports industry? How can they make fun of themselves in these ads where they specifically say that their offering makes no sense?

Here’s the deal. I don’t know the answer. I don’t know if it’s their redemption of those points to buy stuff that is working. I don’t know if it’s just investor money they are burning through with deeply discounted products. I don’t know if they have been able to create an ecosystem of affluent buyers which is easy to monetize some day in the future. It makes no sense whatsoever.

And, yet here we are. CRED is huge. It’s beyond anything the Indian startup space has ever seen. It’s unfathomable business model is somehow a strength.

Under the hood though, it’s the same human desire I’ve been talking about for the last few weeks. A desire to be rewarded and recognized for mundane work.

A training session (especially when it is a mandatory one) can get pretty mundane. It can become outright boring if the participant isn’t interested.

Add some gamification, and you have the possibility of at least inducing some interest in it.

We’re just scratching the surface of possibilities here. Before we talk about the "how", we need to wholeheartedly accept the "why". Once we as educators truly accept what the learners are expecting, we can make magic happen.

Starting with why,
Abhilash