How does Walmart retain customers? What is Walmart’s customer retention strategy? How does Walmart compete with Amazon on customer retention? And what role does Walmart Plus play in keeping shoppers loyal? These are the questions you probably ask every day - and this guide answers them all.
Walmart itself says it starts with Sam Walton’s philosophy: customer loyalty begins with relationships.
One of Walmart's business resources rightly puts it:
"If you’ve followed Sam Walton’s eighth rule for building a better business, they have a 60-70% chance of buying again, while new prospects only have a 5-20% chance of buying. It’s easy to see why investing in customer loyalty is good for your business."
At Propel, we’ve built retention systems for fast-scaling B2C companies across ecommerce, wellness, and fintech. As a Platinum Customer.io Partner, we combine data, creative, and AI to help brands boost loyalty and reduce churn.
That expertise is what makes this teardown different - it’s not theory, it’s practice. We’ll break down Walmart’s customer retention strategy across awareness, onboarding, engagement, and loyalty - showing exactly how lifecycle marketing, omnichannel orchestration, and loyalty perks turn everyday shoppers into long-term customers.
Walmart doesn’t chase attention with flashy ads. Its strategy is simple: be everywhere and always feel affordable. Customers know what Walmart stands for the moment they see the brand - low prices, easy access, and trust.
The backbone of Walmart’s awareness is Everyday Low Prices (EDLP). Unlike retailers who push seasonal sales, Walmart stays low year-round. In 2025, this edge is sharper thanks to AI-powered pricing. Thousands of items update in real time to match demand and beat competitor offers. The message is the same on TV, social, the app, and in-store banners: Walmart saves you money - always.
Walmart also grows awareness through partnerships. Walmart+ members get fuel discounts, streaming perks, and exclusive deals. These benefits make Walmart+ more than a delivery program - it’s a savings bundle that rivals Amazon Prime but at a lower price point.
Free trials drive trial awareness. Shoppers can test Walmart+ for free, with perks like no-minimum shipping and fuel savings. This “try before you buy” approach lowers the barrier, making it easier for first-time users to get hooked.
Walmart knows loyal customers spread the word. Seasonal referral bonuses - extra discounts or fuel credits - encourage members to bring friends. Word of mouth still matters, and Walmart taps it at scale.
Finally, Walmart doesn’t run broad campaigns only. It invests in geo-targeted ads. Promotions for groceries, household staples, or back-to-school bundles reach families in specific zip codes. On TikTok and Instagram, Walmart aims at Gen Z with snackable content, keeping the brand front-of-mind for the next generation of shoppers.
Why it works: Walmart mixes EDLP, Walmart+, partnerships, referrals, and targeted ads. This isn’t scattered marketing. It’s a consistent drumbeat that makes Walmart the go-to choice for everyday needs.
Walmart knows the first impression shapes loyalty. That’s why the onboarding journey is built to be fast, simple, and rewarding. Every touchpoint is designed to reduce friction and show value right away.
The signup flow is built for speed. Customers can create an account or join Walmart Plus in just a few taps. No heavy forms. No delays. The promise is clear: instant access to savings and convenience.
Once signed up, new users get personalized welcome emails and in-app prompts. These highlight benefits like free shipping, fuel discounts, and faster checkout. Messaging is direct: here’s what you unlock, here’s how to use it.
The app makes navigation effortless. It shows shoppers how to place a delivery order, schedule a pickup, or use Scan and Go for checkout-free shopping. Each step feels guided, not overwhelming.
Walmart makes sure the first order feels like a win. Free shipping offers and trial discounts remove hesitation. Customers don’t just see value - they feel it in their very first transaction.
Right away, Walmart uses AI to recommend essentials. From groceries to household items, the app suggests what new shoppers are most likely to need. This saves time and creates early habit loops.
The design is minimal. Shoppers can reorder common items in a single click. This lowers the cognitive load and makes repeat use almost automatic.
If a shopper leaves without finishing checkout, Walmart doesn’t let them drift. Cart reminders and trial nudges arrive via email, app, and push notifications. The goal: bring them back before the habit breaks.
Why it works: Walmart’s onboarding isn’t just sign-up - it’s a carefully crafted loop. The brand blends speed, personalization, and instant value to turn new users into repeat customers from day one.
Getting customers in the door is one thing. Keeping them engaged week after week is where Walmart shines. The brand uses data, AI, and consistent value to make repeat shopping feel effortless.
Every click and purchase fuels Walmart’s recommendation engine. Shoppers see personalized product suggestions in the app, on the website, and through emails. This cuts search time and makes shopping feel tailored to each customer.
Walmart’s AI-driven search predicts what customers need before they even type it in. It also suggests replenishment reminders for groceries and household goods, nudging customers to reorder at the right time.
Engagement is seamless across platforms. A cart started on the app shows up on desktop. A pickup order links directly to in-store screens. This cross-channel sync keeps the experience smooth, no matter where the customer shops.
Walmart keeps excitement high with flash rollback deals and limited-time seasonal bundles. Shoppers get alerts via push, SMS, and email, pulling them back into the app or store with a sense of urgency.
Not all shoppers act the same - and Walmart knows it. The company segments users into groups like frequent buyers, occasional shoppers, and lapsed customers. Each segment gets tailored messaging: rewards for loyal buyers, reactivation offers for dormant ones.
Why it works: Walmart’s engagement strategy mixes personalization, convenience, and timely offers. Customers don’t need to think about where to shop next - the experience is built to keep Walmart top of mind and top of cart.
For Walmart, loyalty isn’t built on points alone. It’s built on value, convenience, and trust. The brand layers Walmart Plus perks, employee incentives, and even ESG initiatives to keep customers coming back for years.
With over 40 million members, Walmart Plus is Walmart’s strongest loyalty engine. Subscribers get unlimited free delivery, fuel discounts, and exclusive deals. It’s positioned as a cheaper, more practical alternative to Amazon Prime—and it creates predictable, recurring revenue.
Loyalty benefits go beyond shipping. Walmart offers perks tailored to categories:
Loyalty isn’t only transactional. Walmart invests in sustainability and community support, like recyclable packaging and disaster relief efforts. These initiatives resonate with socially conscious shoppers and add an emotional layer to loyalty. Customers aren’t just saving money - they feel part of a brand that gives back.
Walmart actively encourages reviews and ratings in its app and on product pages. Verified reviews build trust, reduce purchase hesitation, and turn happy customers into advocates. In this way, user-generated content doubles as a loyalty driver.
Why it works: Walmart’s loyalty strategy blends hard benefits (savings, access, perks) with soft benefits (trust, community, social proof). By making loyalty both practical and emotional, Walmart creates a sticky ecosystem that’s hard for competitors to break.
Walmart’s secret isn’t just EDLP or Walmart Plus. It’s rooted in Sam Walton’s 10 rules for building a better business. These principles are still visible in Walmart’s retention strategy today:
These rules explain why Walmart has managed to hold on to customers decade after decade - it was designed for loyalty from the ground up.
Walmart has transformed into a data-first retailer. Its retention strategy now runs on AI and omnichannel orchestration.
For Walmart, lifecycle marketing isn’t a theory. It’s how the company keeps 140 million weekly shoppers in its orbit.
Without lifecycle marketing, Walmart would burn cash chasing new shoppers. Instead, it maximizes each relationship by speaking to customers based on where they are in the journey.
Retention isn’t a “nice-to-have” - it’s the growth lever that protects margins. Walmart proves it:
Takeaway: Retention marketing scales profit. Acquisition may fill the funnel, but retention fills the balance sheet.
Walmart doesn’t try to out-Amazon Amazon. It wins by combining pricing power + physical reach + omnichannel convenience.
Bottom line: Amazon dominates digital, but Walmart turns its store network into a retention moat.
Walmart’s retention strategy shows that loyalty isn’t built on one channel or one program. It’s built on consistency across the lifecycle.
For other brands, the lesson is clear: retention is not about one campaign. It’s about designing the entire journey so customers stay, spend, and spread the word.
At Propel, we help B2C brands do exactly that. As a Platinum Customer.io Partner, we build lifecycle systems that mix data, creative, and AI - so you can replicate Walmart-level retention, even without Walmart-level scale.
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Walmart retains customers through a mix of Everyday Low Prices (EDLP), Walmart Plus benefits, personalized recommendations, and omnichannel convenience. By making shopping affordable and frictionless, Walmart keeps customers loyal at scale.
Walmart’s loyalty strategy is built around Walmart Plus, employee discounts, and category-specific perks like grocery delivery and pharmacy savings. The program creates recurring value while emotional loyalty comes from community support and sustainability efforts.
Walmart Plus is the core loyalty driver. With over 40 million members, it offers free delivery, fuel discounts, and exclusive deals. This subscription locks in repeat purchases and builds a sticky ecosystem similar to Amazon Prime.
Walmart engages customers with AI-powered personalization, predictive restock reminders, seasonal rollback deals, and seamless cross-channel experiences. Frequent shoppers see tailored offers, while lapsed users receive targeted reactivation nudges.
Walmart competes with Amazon by leaning on its physical store network as fulfillment hubs, covering 93% of U.S. households with same-day pickup or delivery. It also undercuts Amazon Prime with cheaper Walmart Plus pricing, while its $270B private-label portfolio drives affordability customers trust.
Customer retention is critical for Walmart because keeping a customer costs 5–25 times less than acquiring a new one. Retention increases repeat purchases, boosts lifetime value, and creates word-of-mouth referrals that lower marketing costs.
As of 2025, Walmart Plus has more than 40 million subscribers. This membership program is a key part of Walmart’s retention strategy, offering free delivery, fuel discounts, and exclusive deals.
Walmart uses AI-powered pricing, predictive analytics, and cross-channel personalization to retain customers. These tools help Walmart adjust prices in real time, suggest relevant products, and provide seamless experiences across app, web, and stores.
Beyond discounts, Walmart builds emotional loyalty through sustainability efforts, recyclable packaging, disaster relief programs, and community support. These initiatives align with customer values and strengthen long-term loyalty.
Other retailers can learn that retention requires a full lifecycle approach - acquisition, onboarding, engagement, and loyalty. Walmart’s success comes from blending low prices, convenience, personalization, and loyalty programs into a single system.
Use our free Retention Impact Calculator to see how much revenue you’re leaving on the table — and how much you could unlock by improving retention.
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