Welcome to The Retention Newsie by The Email Marketers, the retention building experts for 8-& 9-figure e-commerce brands.

Every week, we bring you the best case studies, strategies, and tips for retaining more customers, turning them into raving fans, and increasing revenue.

Up this week:

• 🛋 Casper’s Flourishing Referral Machine

• 📧 Building A Strong Repurchase Rate

• 📊 Conversational Marketing, VIP Treatment Loyalty Programs & More!

Reading time: 4 minutes 20 seconds

How Casper Turned Sleep Into a 7x ROI Referral Machine

In 2014, Casper set out to revolutionize how people buy mattresses. The idea of purchasing a mattress online - without testing it first - seemed absurd. But Casper had a secret weapon: they knew that a great night's sleep was something people loved to talk about.

James DeStefano, Senior Director of Customer Marketing & CRM at Casper, understood that buying a mattress is an intensely personal journey. "Everyone has a story about losing a precious night of sleep or a bad mattress-buying experience," he explains. This insight became the foundation of their referral strategy.

Rather than just selling mattresses, Casper positioned themselves as sleep experts, building trust through educational content and a groundbreaking 100-night trial period. This trust became the cornerstone of their referral program, which now generates 7x greater return than their average marketing investment.

The program's success lies in its carefully calibrated incentive structure: referring customers receive a $75 Amazon gift card, while new customers get 25% off their first purchase.

This combination proved powerful - through A/B testing, they found this specific mix drove a 26% increase in shares and a 16% lift in conversions compared to other reward combinations.

But Casper didn't stop at just creating great incentives. They made their referral program everywhere throughout the customer journey:

• Prominently displayed in their navigation bar

• Featured on order confirmation pages

• Integrated into shipping status updates

• Triggered after positive product reviews

• Included in post-purchase email sequences

• Even printed in product instruction materials

They also use their Net Promoter Score (NPS) surveys strategically - when customers leave positive feedback, they're immediately presented with the referral program, catching them at their moment of highest satisfaction.

The program has become so successful that Casper expanded it beyond mattresses, creating a separate pillow referral program that offers a $10 gift card for referrals, carefully tested to ensure it wouldn't cannibalize their main mattress referrals.

• Time Your Ask Perfectly: Use post-purchase email automation or app notifications to request referrals when customers are most satisfied. For example, after a glowing review or a delivery confirmation.

• Test Your Incentives: Run A/B tests by splitting your audience and offering different reward structures, such as discounts for the referee in one group and cashback for the referrer in another. Analyze which drives more shares and conversions.

• Start Small, Then Expand: Begin with a single product or service, crafting a tailored referral message specific to that audience. Once proven, expand with variations while avoiding redundancy or program fatigue.

We help 8-& 9-figure e-commerce brands increase revenue and build strong customer relationships through retention marketing: Email, SMS, direct mail, subscriptions, memberships, loyalty programs, and more.

Join Us at DTC Next

Join us at DTC Next where experts like Malanie Balke, Tom Ruff, and Larry Kim share their tips and tricks to scale acquisition, maximize retention, and expand customer value in 2025.

DTC Next is free, live, and happening on December 4. Don’t wait—register now and set your future self up for success!

The Hidden Power of Repurchase Rate

Your first sale is just the beginning. The real growth lies in what happens next.

Think of your business as a bucket of water - new customers pour in, but are you plugging the leaks? Your repurchase rate isn't just another metric - it's a vital sign of your business's long-term health.

Why Repurchase Rate Matters Now

Focusing on the repurchase rate isn't optional - it's crucial. The first purchase is a trial, but the second purchase? That's the foundation of a lasting relationship.

Here's your action plan to boost repurchases:

1. Strengthen Your Second Purchase Experience

• Create personalized post-purchase communication flows.

• Offer unexpected gifts or bonuses for repeat buyers.

• Implement customer feedback loops to identify friction points.

• Set up segmented email campaigns based on first-purchase behavior.

2. Build Systems for Retention

• Launch a strategic loyalty program that rewards frequent purchases.

• Develop subscription models for commonly repurchased items.

• Conduct regular customer interviews to understand buying patterns.

• Set up automated replenishment reminders based on typical usage cycles.

3. Measure and Optimize

• Track repurchase rates by product category.

• Monitor time between purchases.

• Analyze customer feedback for improvement opportunities.

• Test different incentive structures for repeat buyers.

The Implementation Roadmap

Start by assigning ownership - either hire a dedicated head of retention or partner with a specialized email agency. For businesses under $20 million in revenue, working with an experienced agency can provide immediate expertise and proven systems.

Every strategy and decision should be viewed through the lens of customer retention. Your repurchase rate isn't just a metric - it's a mindset that transforms one-time buyers into lifetime customers.

• 37% of consumers feel rewards take too long to accumulate.

• Research shows conversational marketing is becoming crucial for retention, with real-time dialogue driving deeper customer connections.

• T-Mobile launched Magenta Status, offering VIP treatment and exclusive deals without requiring additional effort.

• Shopify's guide explains how brands should use position-less marketing to create more agile, customer-responsive retention.

• New data shows that 79% of online companies are now using affiliate programs as part of their retention strategy.

• 89% of customers are likely to make another purchase after a positive experience.