Mobile Gaming Company SCVNGR Launches LevelUp Groupon Rival

Mar 16th, 2011 | By | Category: Marketing

Thursday the mobile social gaming company SCVNGR launched a group coupon service called LevelUp, conceived as a rival to Groupon. Where Groupon offers a single daily deal, LevelUp offers a sequence of deals where completing three daily deals unlocks another level of offers, like advancing levels in a video game.

SCVNGR and LevelUp are creations of Seth Priebatsch, a Princeton dropout who began pursuing online entrepreneurial opportunities at a young age. Priebatsch applies gaming theory to social media marketing. SCVNGR encourages users to play meaningful games by earning points for doing real-life activities. Hundreds of institutions and an estimated 1 million users have used SCVNGR since its founding in 2007. The company recently raised $15 million in venture capital from Google Ventures, Balderton Capital, and Highland Capital Partners.

LevelUp is another application of the SCVNGR principle of marketing through gaming. One purpose of the LevelUp sequenced coupon approach is to turn first-time coupon users into repeat business. For instance, the second coupon in a series might offer an incentive for returning to a place of business with a friend, while a third might offer a membership discount for returning a third time, and in the process unlocking a new level of incentives. The approach contains built-in upsell and cross-sell potential.

SCVNGR is introducing the LevelUp program in Boston and Philadelphia first. If the test goes well, it will expand to other locations.

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