Back That App Up: SCVNGR takes on the daily deal sites Mar10

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Back That App Up: SCVNGR takes on the daily deal sites

If you are not familiar with the mobile app SCVNGR, it works similar to the Foursquare app. Location based “Check-ins.” SCVNGR announced today they will be releasing a new app combining the functionality of checking in at locations and the coupon based daily deal sites, ie, Groupon.

Competing with Groupon and LivingSocial will not be an easy task, but they have a plan for sweetening the pot with potential customers. The new app is called “Level Up” and will allow users to do just that. While Groupon may attract a temporary business boom when a company offers up a tasty deal on the site, customers tend to never go back after they have used up their great deal.

Enter “Level Up”, the premise is that now when you purchase a Level one package of 2 movie tickets for $10. You open up the ability to level up and receive a level two package which could be 3 movie tickets for $10. Which then opens up the final tier of the level 3 package and even more savings for example 4 tickets for $10. The ultimate idea is that by increasing the incentive for customers to come back to the same location, businesses are creating a certain amount of loyalty. SCVNGR CEO Seth Priebatsch, is assuring businesses that their initial studies show that by the third business transaction the customers have established loyalty and will return to an establishment even if they are paying full price.

Level 2 and 3 packages are not available to the general public and can only be earned by purchasing the package below it. SCVNGR believes businesses will make back the money lost on the super deals from levels 2 and 3 by the influx of level 1 noobs who will not return. Classic hate on casual players. Only the hardcore players who level up will be able to experience the benefit of the end-game deals.

SCVNGR will entice companies to use their service rather than the other daily deals by taking none of the profit from Level 1 packages. Groupon charges companies 50% of revenue earned through deals. Level 2 and 3 will cost companies only 25% of revenue earned.

Launching in test cities of Philadelphia and Boston, SCVNGR is going all out with a $1 million ad campaign to get the word out. Some of the initial businesses are even donating 25% of their Level 1 deals to the American Heart Association and Susan G. Komen for the Cure. Then those organizations will most likely also spread the word.

 

The app offers a new take on a rising market and people love deals. I know I do. If “Level Up” does well enough to move over to Seattle. I will be checking it out. Is there enough of a draw for you to put your money into this?

**Update: SCVNGR sent over an email with some fun little linkies for you guys.

So, register for LevelUp now at: TheLevelUp.com.

Or grab the awesome “LevelUp” App for iPhone & Android.

 

Gleaned via Techcrunch.com