Casper
Sleep

A Good Night Sleep Starts with a Better Mattress

Casper Sleep is a direct to consumer digitally native mattress brand that designs and manufactures products to help people feel and live better through innovative comfort solutions.

Casper Sleep designs and manufactures a range of comfort technology products, including mattresses, pillows, and seat cushions. Their innovative manufacturing and sales approach rocketed them to become one of the largest manufacturers of mattress in the USA.

While Casper Sleep has a good staff on hand for day to day needs, they also recognize the key advantage of having an external agency on board as well. Casper Sleep worked with a handful of third-party agencies for their listings and ads. Areto was an extension of their marketing team brought on board for complete Amazon listing overhaul and PPC ads.

Steady Online Sales with 2% YoY Growth

Casper Sleeps revenue growth was flattening at 2% YoY on Amazon. In order for Casper Sleep to capture new customers, they looked for opportunities to get in front of people looking to buy a new mattress on Amazon. They knew that customers in the middle of key life events have a much higher likelihood of purchasing a mattress.

In 2021, Casper Sleep decided to work with Areto on a complete Amazon listing overhaul and PPC advertising. This included creating an Amazon store, enroll in Amazon Brand Registry,  update product photos, create engaging videos and run sponsored ads. Areto helped them to use their creative, humorous marketing assets to tell their brand story and engage audiences looking to buy mattresses. Since then, they’ve continued to find new ways for their brand to stand out and grow on and off Amazon.

This was the first time that Casper Sleep had collaborated with a marketing firm. Although the company has been selling online and through retail stores for years, their sales had flattened on Amazon.

Analysis & Results Driven Approach

Amazon Overhaul

In 2021, Casper Sleep decided to work with Areto for Amazon listing optimization, and PPC Ads. Areto helped them to use their creative, humorous marketing assets to tell their brand story and engage audiences looking to buy mattresses, pillows and mattress toppers. Since then, they’ve continued to find new ways for their brand to stand out and grow on and off Amazon.

Not only did Areto target consumers who routinely shop for mattresses but also for those may not be interested in buying a mattress or who don’t fit its typical customer demographic but who frequently share reviews and comments on Amazon, and one or more people in that consumer’s network is likely to be a potential customer.

Areto started by doing an overhaul of Casper Sleeps Amazon listing. A/B testing was performed numerous times across all products for months to see performance of images, videos, listings and ads.

Besides Amazon brand registry, Areto AI mapped competitive keywords, targeted competitors, price trends and generated conversion matrix. All ads were turned off while listing optimizations were in effect. Once listings were optimized, photos redone and video campaigns developed, PPC ads were started.

Initially, ads were started at 10% of original budget. With positive results, the PPC budget was doubled in 45 days and thereon till the original ad budget spend was resumed after 7 months. Thereon, ad budget was increased yielding not just in higher revenue, but also higher conversion, profits and becoming the #1 selling mattress on Amazon.

Better Ads

PPC Ad Words

In 2021, Casper Sleep decided to work with Areto for Amazon listing optimization, and PPC Ads. Areto helped them to use their creative, humorous marketing assets to tell their brand story and engage audiences looking to buy mattresses, pillows and mattress toppers. Since then, they’ve continued to find new ways for their brand to stand out and grow on and off Amazon.

Not only did Areto target consumers who routinely shop for mattresses but also for those may not be interested in buying a mattress or who don’t fit its typical customer demographic but who frequently share reviews and comments on Amazon, and one or more people in that consumer’s network is likely to be a potential customer.

Areto started by doing an overhaul of Casper Sleeps Amazon listing. A/B testing was performed numerous times across all products for months to see performance of images, videos, listings and ads.

Besides Amazon brand registry, Areto AI mapped competitive keywords, targeted competitors, price trends and generated conversion matrix. All ads were turned off while listing optimizations were in effect. Once listings were optimized, photos redone and video campaigns developed, PPC ads were started.

Initially, ads were started at 10% of original budget. With positive results, the PPC budget was doubled in 45 days and thereon till the original ad budget spend was resumed after 7 months. Thereon, ad budget was increased yielding not just in higher revenue, but also higher conversion, profits and becoming the #1 selling mattress on Amazon.

Speak to Your Customer

Video Ads

Video’s on Amazon listing are critical in increasing sales. Areto worked on

1. Creating great and memorable videos to brand “Casper Sleep = good mattress” into people’s mind.
2. Then when the moment comes people need to buy a mattress, they will think of Casper Sleep.

Video listings on Amazon are free and speak stories to the consumer. There were many competitors with video listings, but Casper Sleep was the first one to run video ads, so any lift in sales was 100% attributable to those early campaigns. Comparing dollars in vs dollars out gave them the confidence that this was the right strategy to pursue.

Besides watching sales come in, they also had other indicators that looked promising. Areto made several experiments which divided the target audience into two. One half will saw the ads while the other half didn’t. Areto then looked at the difference in branded search queries between the two groups.

Sales Boost

Significant Increase in Orders on Amazon

With the help of Areto, Casper Sleep grew their revenue on Amazon by 31% in 2021. This was the largest sales on Amazon recorded for Casper Sleep. Casper Sleep’s new customer retention strategies had an incredible impact as well. Revenue from repeat purchasers over Amazon Prime Day was the highest in company history, and 40% of orders were from repeat buyers. Amazon sales revenue in Q4 2021 increased 38% year over year, while orders in Q3 2021 from email increased 34% year over year.  Casper Sleep also saw an incredible ROI with Areto.

Despite challenges faced by many direct-to-consumer companies, Casper Sleep continues to grow in 2022. With Areto as their cross-channel marketing platform, they are well-positioned to increase sales into 2022 and further expand their cross-channel marketing strategy. We can’t wait to see what 2023 brings!