The 5 Key Ingredients to LevelUp

By Alana Brooks A few days ago, I was pleasantly surprised to find an email from SCVNGR with an engaging headline: “Exciting Pilot Launching In Boston and Philly!” While I often disregard emails from SCVNGRbot because they’re typically just follower updates, I was intrigued and decided to take a peek!

“LevelUp works with merchants to create the best deals in your city. Each business has three levels of deals: good, better and best. When you use a deal on LevelUp, you'll level-up to get access to the next level deal at that business. Pretty sweet, right?”

In the email, SCVNGR introduced a new program called LevelUp that combines some of the most successful marketing techniques out there.

The successful formula:

Local deals + Gaming + Loyalty Program + Business Incentive + Charity = Success

Here’s why LevelUp works:

  1. Localized, Longer Lasting Deals-While LevelUp is currently only available in Boston and Philadelphia, that’s only temporary. As the program grows, more metropolitan areas will undoubtedly be added, increasing the number of users that are able to participate in their own backyard.   Though Deal of the Day sites are definitely not a new concept (see Groupon and its endless number of copycats), when combined with the other aspects of LevelUp, it totally works. Plus, unlike other deal sites that use a “deal of the day” model, LevelUp deals seem to last for at least a week, allowing the ever-wavering consumer to take his time in deciding whether or not to make a purchase.
  2. SCVNGR’s Gaming Expertise- Though FourSquare may be the current leader in the Location Based services, LevelUp definitely makes SCVNGR an even more viable competitor. By using their popular gaming edge, SCVNGR can combine gaming with saving and loyalty programs. LevelUp makes shopping a game, with different levels of deals that can only be unlocked after first making a purchase.
  3. An Exceptional Loyalty Program- LevelUp offers users three levels of deals, increasing in value. Because users can see all three levels right away, they immediately know what is in store for them. While the first deal may be good, they know the second and third deals are even better, and can make their first purchase worthwhile in the long-run. Users would be crazy not to come back to the store, because the deals only get better.
  4. Greater Benefits to Businesses- According to TechCrunch, while sites like Groupon take 50% of the cut, LevelUp lets businesses keep 100% of the proceeds from Level 1 Deals, and only takes 25% from Level 2 and 3 deals.
  5. A Charitable Aspect- SCVNGR ’s mantra is to share their success with others, specifically those less fortunate.,  Proceeds from each deal go to  various charities, which help to benefit the communities around the businesses they interact with and instill a general good will for the company as a whole.

Would you use LevelUp? Share your thoughts in the comments!