From the makers of SCVNGR comes a new ‘geo-loco-social’ coupon website, LevelUp. Similar to Groupon or LivingSocial, LevelUp is a website that offers local deals. However, with this site, the deals get better as you use them.
The way LevelUp works is that you can browse through featured deals in your city and then pick the deal that you like best, buy it and use it. But the benefits of these deals do not end there. The first deal you can purchase is referred to as a “Level 1” deal and is available for 7 days. Once you use your “Level 1” deal, you will then be able to see even better deals – Level 2 and Level 3. These deals will only be available to those customers who have already purchased a Level 1 deal. If, for example you saved 50% on your Level 1 deal, a Level 2 deal may save you 65%.
The purpose of LevelUp is to expand on the new business that a location based coupon stimulates. By offering additional deals, LevelUp hopes to encourage new customers to return again, and to become “regulars.”
Additionally, for businesses this new service gets even better. On Groupon, a business has to give Groupon 50% of the profits generated by their deal. With LevelUp, businesses get to keep 100% of the profits produced by their “Level 1” deals and LevelUp takes only 25% of the revenue generated from Level 2 and Level 3 deals. The founders of LevelUp have also done research that suggests that after a consumer makes three visits to a particular business, they develop a sense of loyalty to that business thus increasing the likelihood of gaining ‘regulars’ from the three LevelUp deals.
Given these incentives, what business wouldn’t want to get involved with LevelUp? Businesses will profit more, as well as have an increased chance of gaining repeat business.
So far SCVNGR’s spinoff LevelUp is only available in Boston and Philadelphia, but we expect to see LevelUp launched in several other major cities soon.