Transaction marketing leads to a new level of revenue and engagement, according to LevelUp CEO Seth Priebatsch, who keynoted today at Leading in Local: SMB Digital Marketing
Priebatsch has based LevelUp’s success on driving more loyalty transactions, using lower Interchange fees (“Interchange Zero”) as a loss leader (or break even). It is possible to do so thanks to a new law restricting interchange fee introduced by Sen. Dick Durban. “Dick Durban is a great hero,” said Priebatsch.
LevelUp, with registered credit and debit cards to show merchants who their customers are, and made “always on” by mobile, launches promotions around a number of opportunistic situations, including first visits, loyalty, re-engagement, birthdays and rain days. The average customer uses LevelUp 4x a week, enabling the company to save even more money via interchange, akin to how iTunes bundles its sales,” says Priebatsch.
Sales can be further leveraged via game mechanics. Priebatsch notes there are three core types: sunken rewards that are passively earned by consumers; progression dynamics like punchcards, and appointment dynamics that spur people to shop or buy at ideal times.