SCVNGR is launching a daily deals service called LevelUp. LevelUp is currently in pilot mode as it is providing deals only in Boston and Philadelphia as of right now. SCNVGR is aiming to compete with local daily deal websites like Groupon and LivingSocial. SCVNGR will offer a series of three deals to customers as they try out each business. SCNVGR is waiving the fee to businesses for the first deal to encourage them to try it out.
SCNVGR believes that they can get customers to keep coming back to the business even after using one daily deal. This is a problem that Groupon and LivingSocial are struggling with, the inability to turn customers into regulars. SCNVGR requires the business to give 3 deals at a time. ?Our job is get customers to come back,? stated SCVNGR CEO Seth Priebatsch. ?If they?re not coming back, we haven?t done our job; we?ve just created another Groupon clone.?