News

Cold Stone hopes to boost sales with eGift social media app

July 6, 2010

Cold Stone Creamery has launched a social media application that allows customers to send a Cold Stone Creamery gift to their friends and family via Facebook or email. The Cold Stone Creamery eGift program is an innovative part of Cold Stone Creamery's executive team's initiative to increase in-store annual unit volumes and drive franchisee profitability.

"Social media is becoming increasingly pervasive and perpetuating a question of how to link a company's social media presence with real-world sales and profitability," said Dan Beem, president of Cold Stone Creamery, in a news release. "We saw an opportunity to engage Cold Stone's loyal customer base and social media following to drive a measurable impact on in-store sales. Our strategy for profitability continues to include innovation across the entire brand, whether that’s a creative new ice cream product or a cutting-edge social media solution."

According to research firm Inside Network Inc., the U.S. market for virtual goods is currently estimated at $1.6 billion. Social networking sites account for approximately half the total market for virtual goods — twice as much as one year ago.

Inside Facebook has estimated that consumers spent $10 million on virtual goods through applications on the Facebook platform in 2009. The eGift Social solution takes this trend to the next level by moving purchased virtual gifts into the physical world.

Unlike traditional virtual gifting, Cold Stone's eGift application allows users to send a code for a tangible gift to any recipient's Facebook or email, instantly redeemable in any of Cold Stone's 1,300 locations nationwide. The application, developed by e-commerce and payment processing industry-leader First Data Corp., facilitates an intuitive and secure transaction process through First Data' proprietary technology.

Cold Stone is among the first brands leveraging this trend, linking its social media presence with concrete consumer behavior to increase profitability.

"By addressing the limits of other competitive offerings and leveraging the equity of a much-loved, well-known brand such as Cold Stone, we're making it easier for individuals to connect and make their social media interactions more relevant in the concrete world," said Beem.

Cold Stone's eGift program follows the roll out the company's calendar of new product innovation and the announcement of its continued strategic partnerships and successful results of co-branding initiatives with Tim Hortons and Rocky Mountain Chocolate Factory.

Cold Stone Creamery’s eGift Program

From Cold Stone Creamery’s website or Facebook page, consumers can utilize the eGift application by selecting one or more friends to whom to send gifts, either by adding them from Facebook or entering their e-mail address. The sender then selects the product they would like their friend to receive, adds a personal message, and proceeds through the secure checkout process.

Recipients receive a Facebook message or e-mail, delivering the eGift with its associated redemption code. Following the instructions provided, the recipient can redeem his or her gift, and customize its flavor, in any U.S. Cold Stone store location.