Very cool idea by our friends over at SCVNGR.

For those that haven’t used it, LevelUp’s model works as follows: first, customers are offered a special deal that’s very similar to what they’d receive from Groupon. They’re also informed that if they return to the same venue a second time down the line, they’ll be able to receive an even better deal (the same is true for the third trip). The model is designed to build customer loyalty — businesses have to offer some pretty steep discounts at Levels Two and Three to keep users coming back, but SCVNGR CEO Seth Priebatsch says that results from the first 6-8 weeks of the service have been very promising.