Casper Reinvents A Good Night’s Sleep With Retention Marketing

Mandy Lin

Retention marketing is all the rage these days. As marketing departments adopt digital transformation, they are better able to personalize customer engagement. This is important because retention marketing is most effective when it is personalized to a segment of one.

Certain industries have predictable, repeatable customer interactions—for example, you probably go to the grocery store at least every week. You regularly need to fill up your gas tank. Mobile phones, Internet, and cable customer experiences happen daily, if not hourly.

For durable goods, however, interactions between the customer and the brand can be years or even decades apart. This can make it challenging for companies to foster a close relationship with their customers. Retention marketing efforts can bridge this gap.

Who is Casper?

Casper is a two-year-old mattress company founded by former IDEO and NASA engineers. It sells a mattress that consumers order online. It is shipped in a box and is returnable. Yes, you read that correctly—no stores. Instead, online shopping for a mattress that ships in a box and unpacks itself. You can see it for yourself here.

Growth hacking via referrals

As any young company realizes, one way to growth-hack yourself into the big leagues is through referrals. Casper gains referrals by offering referring customers a $50 Amazon gift card, and referred customers $50 off the cost of the mattress. The company also understands that directly following the purchase (at order confirmation) is an ideal time for referrals. Therefore, Casper makes it simple for customers to socially share their mattress purchase on the order confirmation screen.

“Make Your Bed”

Another element of Casper’s retention marketing program is its “Make Your Bed” emails, which attempt to upsell existing customers. Along with mattresses, Casper also sells sheets, pillows, foundations, and even dog beds. Shortly after a customer’s initial purchase, Casper sends an email encouraging the customer to buy additional products.

Snoozeletters

Emails and referrals are not their only retention marketing tactics; Casper’s marketing team also produces a monthly “snoozeletter” that focuses on sleep and wellness.

The rare discount

Casper mattresses are priced competitively and the company rarely offers promotions. However, on its second anniversary Casper offered $22 off any product. This promotion led to a big uptake in the company’s newest product: pillows. But more importantly, it increased product validation by updating pillow product reviews.

Top advocates and special treats

You may know that Amazon’s top reviewers, who are part of the Vine program, receive free products in exchange for their honest feedback. Similarly, Casper aims to delight its top product advocates through gifts of robes, coffee, and stickers. On a more personal note, top advocates also receive handwritten thank-you notes.

All retailers have the opportunity to leverage live data to digitally transform their customer experience. Learn more at “Retail – reimagined for the new economy.”


About Mandy Lin

Mandy Lin is the Senior Director, Digital & Content Marketing, at SAP accountable for SAP's industry-led (vertical marketing) social strategy, operations, budget, and enablement. Her team is responsible for social posting, social listening (share of voice) and engagement, and content amplification. We provide monthly analytics on the success of these efforts.