LevelUp, Cambridge based SCVNGR‘s answer to daily deals, has just announced a partnership with American Express to create “couponless” loyalty offers. LevelUp differs itself from competitors like Groupon and Living Social by focusing on customer loyalty and generating repeat customers. After buying the first deal users are enticed to LevelUp and get even bigger discounts.
Through American Express’ Smart Offers API cardmembers will now be able to redeem their deals simply by swiping their card – removing the need for printing out coupons or even showing your phone to the merchant. After the deal is redeemed the LevelUp savings will automatically be delivered via a statement credit through a notification on their mobile devices.
“Today’s news represents significant innovation in location and mobile-commerce,” said Rich Miner, partner at Google Ventures and co-creator of the Android platform. “The combination of American Express’s Smart Offer APIs, LevelUp’s loyalty-retail experience, and the new Android push notification system provides a frictionless transaction experience for everyone involved – consumers and merchants alike.”
The pilot program runs from May 10th to August 31st for Amex customers only in Boston, Philadelphia and San Francisco. In addition to the Amex deal, Levi’s has signed on to be the first national merchant partner to offer specials on LevelUp. Although the deals will only be redeemable at three Levi’s stores – Newbury Street in Boston, Levi’s flagship store on Post Street in San Francisco, and Levi’s store at the King of Prussia Mall in Pennsylvania.
“By partnering with American Express to make deal redemption seamless, and launching with one of America’s most iconic brands – Levi’s – LevelUp is showing that brand loyalty and engagement is a much-needed asset in the daily deals and offers space,” said Chris Mahl, SVP and Chief Brand Alchemist at LevelUp. “The unique ability for LevelUp to develop loyalty along with sales is a winning combination for any business.”
The Levi’s deal actually looks great – $10 for $20, $10 for $30 and $10 for $50 BUT you must be an Amex card holder. Amex is certainly not the most widely used credit card provider so of course it automatically limits the market size. It is unclear with this press release whether there is a Levi’s deal for non Amex card holders.
What do you think of LevelUp’s Amex Levi’s deal? Does it make you want to use LevelUp even more? Does it change any of your discount searching behaviors?
