In only a short time, SCVNGR’s Level Up has already started giving Groupon a run for its money. As opposed to the discounting giant, where customers will often be convinced to patronize a business once (and often only once), Level Up functions on the concept that 3 uses or visits is all it takes to create a new, loyal customer. Now it seems that Level Up is, well, leveling up again. Having noted the awkward monetary exchange that some customers must go through in order to redeem their discounts, they have found a way to bypass coupons altogether, be they paper or digital. Through a recent partnership with American Express that began in early May, using discounts is as easy as paying with your AmEx card.
Level Up’s discounts are tiered where users unlock a new deal as they buy and utilize the previous ones, each being more impressive than the last. Rather than a flourish or flash in a pan, Level Up creates a longer engagement and users become more excited to find out what the newer, better deals are. Not to mention what an improvement this is from a business’s perspective: Level Up takes less profit off the top, making the experience better for all involved. Level Up takes no commission from a company’s first deal and only 25% from the 2nd and 3rd (versus 50% from all deals for Groupon).
SCVNGR has partnered with American Express to create a new way of carrying through transactions. Via a one-time link-up, deals are purchased online and the savings are applied directly to the user’s account with no additional effort. Afterwards, users receive a digital receipt via email or phone. The process is simple and streamlined for the customer as well as the merchant. There’s nothing to remember and nothing to handover. In the tricky business of dealing discounts, SCVNGR keeps finding new and clever ways to make winners of us all.
Gamification Co will be hosting it’s second Gamification Summit in New York on September 15-16. Join keynotes from Gilt Groupe CEO Alexandra Wilkis Wilson and 42 Entertainment’s founder, Susan Bonds, to learn how the new science of engagement is rewriting the rules of product design. For Gamification Blog readers, use discount code GCOBLOG for 25% off at http://gsummit.com/register. We look forward to seeing you there!
