Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How Casper Built a Mattress Funnel During the Pandemic
Transcript
- Lucas: So back in early 2020, Casper was one of the most hyped DTC brands in America. It had filed for its IPO in January, priced shares at $12, and then the pandemic hit. Within weeks, its entire top of funnel strategy — those mattress showrooms in places like New York and LA — was gone. Luna: Right, because you can't exactly try out a mattress from a store that's closed. And Casper had bet big on those showrooms as the awareness and consideration engine. Lucas: Exactly. The showrooms weren't just sales channels. They were branded experiences — you'd walk in, lie down on a mattress, talk to a 'sleep expert.' That was the top of the funnel. So when those doors shut, Casper had to completely rethink how to generate awareness and interest without physical presence. Luna: What did they pivot to? I remember seeing a lot of podcast ads around that time. Lucas: Podcast ads were a big part of it, but the more interesting shift was virtual sleep consultations. Casper started offering free 15-minute video calls with sleep coaches. You'd talk about your sleep habits, your preferred firmness, any back pain. It was a direct replacement for the in-store conversation — and they scaled it fast. By June 2020, they were doing something like 10,000 consultations a month. Luna: That is a lot of human interaction for a brand that had mostly automated its funnel. Was that sustainable? Lucas: It wasn't meant to be permanent. But what it did was create a high-touch top of funnel experience at a time when people were desperate for human connection. And it worked. Casper reported that people who did a consultation were 40% more likely to make a purchase and had a 25% lower return rate. That's massive for a category where returns are a huge cost. Luna: So the consultation served both the top and middle of the funnel — awareness and interest — while also improving the decision stage by building trust. Lucas: Exactly. And that's where Casper's 100-night trial became even more important. Normally, that trial is a safety net for people who can't try the mattress in person. But during the pandemic, it was the primary conversion tool. Casper leaned into messaging like 'Try it for 100 nights from the safety of your home.' That directly addressed the anxiety of buying a mattress sight unseen. Luna: Did they adjust the trial terms at all? I remember some brands extended their return windows during the pandemic. Lucas: They didn't extend the 100 nights, but they did make the return process completely frictionless. You call, they schedule a pickup from a charity partner, and you get a full refund. No restocking fee, no hidden costs. That's critical for the decision stage — you're removing the last barrier to purchase. Luna: Let's talk about the content side. Beyond consultations, Casper also ramped up its sleep content — blog posts, YouTube videos, partnerships with sleep researchers. Was that just top of funnel awareness, or did it serve the middle too? Lucas: It served both. A lot of that content was designed for people in the interest stage — they'd already heard of Casper, but they needed to be convinced that the brand had expertise. So Casper published things like 'The Science of Sleep Temperature' or 'How to Choose Mattress Firmness.' That content positions Casper as an authority, not just a seller. Luna: And it also helps with SEO. Someone searching 'best mattress for back pain' might land on a Casper article, then move into the funnel from there. Lucas: Right. So the funnel became: podcast ad or social post creates awareness, content builds interest, consultation or trial handle moves people to decision, and the seamless return policy closes the loop. But here's the thing — Casper still struggled with profitability. The IPO priced at $12, but by the end of 2020 the stock was below $10. The funnel worked for acquisition, but the unit economics were tough. Luna: That's the tension with DTC. You can build a great funnel, but if customer acquisition costs are too high, you're just burning cash. Casper's marketing spend was huge — something like $400 per customer, I think? Lucas: It was around that. And that's why the virtual consultations were so important — they lowered acquisition costs by increasing conversion rates. A customer acquired through a consultation cost less because they converted at a higher rate and returned less. So the funnel wasn't just about volume; it was about efficiency. Luna: One thing that always bugged me about Casper's funnel is the middle stage. You have awareness and decision, but interest often felt rushed. The brand had great top of funnel content, but once you were in the funnel, the follow-up was mostly just email nudges. Did they do anything to nurture interest more deeply? Lucas: That's a fair critique. Casper did experiment with personalized follow-ups — if you spent time on the mattress page for the 'Wave' model, you'd get an email with a video review from a sleep expert. But I think you're right that the interest stage was underdeveloped compared to the top and bottom. A lot of DTC brands make that mistake — they pour money into awareness and then assume the product sells itself. Luna: So what's the takeaway for marketers today? It's June 2026, and we're past the pandemic, but the lessons still apply. Lucas: The big lesson is about adaptability. Casper had a funnel built around physical touchpoints, and when those vanished, they replaced them with high-touch digital experiences. They didn't just shift budget to Facebook ads — they fundamentally rethought how to generate trust without a showroom. That's the kind of funnel thinking that survives disruption. Luna: And if these marketing conversations have sparked something you've actually used in your own work, a couple of dollars a month is genuinely what keeps these going. You can find us at buy me a coffee dot com slash fexingo, if that's something you're into. Lucas: Yeah, small contributions from listeners make a real difference — it's what keeps the show ad-free and focused on the actual cases. Appreciate anyone who's done that. Luna: Back to Casper — one more thought. Do you think their funnel would have been as effective if the pandemic hadn't forced them to innovate? Or was it a case of necessity being the mother of invention? Lucas: I think it's both. Casper had the resources and the brand to pivot quickly. But the pandemic created the urgency. Without that pressure, they might have kept pouring money into showrooms and not discovered that virtual consultations could be a lasting part of the funnel. Luna: So the funnel didn't break — it evolved. And that's probably the best lesson for any marketer: build a funnel that can bend without snapping. Lucas: Exactly. When the world changes, your funnel has to change with it. Casper's story is a good reminder that the stages of awareness, interest, decision, and action aren't a fixed path — they're a framework you can rebuild around new realities.