How Casper turns a big purchase into a lifelong relationship with AI.

Since its launch in 2014, Casper has been on a mission to transform how people experience sleep. As the pioneer of the "mattress-in-a-box" concept, Casper disrupted traditional retail channels by creating a modern, direct-to-consumer model that emphasized convenience and simplicity. This approach helped Casper rapidly grow into a billion-dollar brand. Now, Casper is evolving its customer experience yet again, using AI to deliver personalized, always-on service.

Dreaming up a new shopping experience

Buying a mattress is a significant decision that requires careful consideration. Traditional mattress shopping—characterized by high-pressure sales tactics—no longer appeals to today's consumers. Casper aimed to create an easy, pressure-free experience, but its initial chatbot, Luna, fell short. Luna couldn’t meet the varied needs of customers and often escalated inquiries to call center teams.

Meet Luna 2.0

To revolutionize its customer experience, Casper partnered with Sierra to launch Luna 2.0, an AI-powered agent designed to build lifelong relationships. Luna 2.0 assists customers beyond their initial mattress purchase, offering support for pillows, bed frames, and other sleep-related products. The goal is simple: make the shopping experience so smooth that customers return to Casper as their needs evolve.

“We’re using AI to meet customers where they are,” says Danny Cassotta, Sr. Manager of Customer Experience. “Our goal isn’t just to sell them a mattress—it’s to be their partner for every phase of their sleep journey.”

Casper’s AI agent integrates seamlessly with internal systems to provide personalized, real-time responses and recommendations. Marc Butakis, VP of Operations, adds, “Initially I was a bit skeptical. I've seen a lot of different systems and promised seemingly unattainable results, but this has been a welcome surprise. Our service has fundamentally changed. With the AI agent, we effectively have 24/7 availability and engage in any language—something we couldn't do before.”

Scaling support 24/7

Luna 2.0 quickly surpassed expectations, efficiently resolving over 50% of inquiries across all customer needs. For product-related questions, an impressive 70% were handled without any need for human involvement.

During peak seasons, Luna 2.0 scales with traffic. As the traffic doubled during the Labor Day Sale, for example, Luna 2.0 maintained a high-quality, consistent customer experience, effortlessly scaling with a 74% resolution rate. This not only reduced service costs but also streamlined Casper’s sales operations.

Helping to drive these continued results are Alie Leahy, CX Project Manager, and Antonia Young, Sr. Fraud & System Analyst. Every day, Alie and Antonia go through customer conversations with Luna 2.0 to ensure the agent has up-to-date information to meet customer needs. If they identify updates required, they are able to flag issues or create new knowledge articles to ensure that the agent can handle inquiries without escalation. Their dedication has been crucial to the AI's ability to adapt and continually improve its resolution rate.

Beyond sales events, the AI operates 24/7, 365 days a year, ensuring continuous customer support that would be difficult and costly to sustain with call center agents alone.

Meaningful conversations, improved engagement, and higher CSAT

Luna 2.0 has been able to deliver a 20% increase in customer engagement, with many customers feeling more at ease discussing their sleep preferences with the AI than with a salesperson. “It’s fascinating to see how open people are to having a meaningful, consultative, and personal conversation with AI,” says Danny.

Correspondingly, Casper CSAT scores have gone up by nearly a point. Call center teams can handle more complex cases, while the Luna 2.0 has a direct, redundancy-free approach that helps customers quickly find solutions to problems.

“In the past, 97% of our interactions began with small talk to be polite or to gather information to which we already had access," Marc explains. “These additions would sometimes increase handle times by a minute. AI doesn’t hesitate—it's direct and efficient while maintaining a conversational tone. Among other things, good service is resolving the customer's issue quickly so that they can get back to their regular lives.

Building loyalty, one great night of sleep at a time

Casper’s innovative use of AI has allowed the company to not only improve operational efficiency but also deliver modern, multichannel customer experiences. By transforming a significant one-time purchase into a series of delightful interactions, Casper is laying the foundation for lifelong loyalty and better sleep for all.