SCVNGR has put a lot of emphasis on building out its LBS-based rewards business lately, and today debuted its largest achievement yet- a self-serve tool that allows local businesses to set up their own rewards campaigns.
Using a streamlined Web-based interface, SCVNGR offers basic features for free by using the edit functions in the service’s mobile clients to build challenges. For “premium” users, the startup is also offering a web-based toolset for $80 a month that makes it easier to build and manage one’s challenges. The entire process is quick and painless according to the company; businesses sign on, enter basic information like the name of the reward, and decide how many SCVNGR points a player must redeem to complete a challenge.
CEO Seth Priebatsch said he sees SCVNGR itself as an extension to the group buying model popularized by Groupon, as this “rewards ladder can help businesses establish a longer-lasting relationship with the customer.” SCVNGR has even been reaching out to Groupon-using businesses to tell them that they should try out the service. The company is also reaching out to businesses known for using social media tools like Twitter to persuade them to give SCVNGR a try.
Other LBS apps, like Foursquare for example, already offer self-serve reward platforms, so this was a logical step for SCVNGR. The problem still lies with consumer sentiment around the concept- outside of early-adopters, many people still don’t understand LBS and the rewards ecosystem surrounding them, let alone the benefits of choosing one app over another.
