Blogs

Walmart Retention Strategy: How Walmart Retains Customers in 2025?

lifecycle marketing and customer retention
Last updated on
September 2, 2025

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.

Stage 1: Awareness – How Does Walmart Attract 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.

how does walmart retain customers

Omnichannel Brand Presence

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.

Strategic Partnerships and Promotions

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.

Walmart Plus Free Trials and New User Discounts

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.

Referral Programs and Word of Mouth

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.

Data Driven Ads and Local Campaigns

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.

Stage 2: Onboarding – How Does Walmart Welcome New Customers?

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.

how does walmart retain customers

Easy Account Creation and Walmart Plus Signup

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.

Personalized Welcome Emails and App Messages

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.

Guided Navigation for Pickup, Delivery and Scan and Go

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.

First Purchase Discounts and Free Shipping

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.

AI Powered Recommendations for Essentials

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.

Simple App Interface and One Click Reorders

The design is minimal. Shoppers can reorder common items in a single click. This lowers the cognitive load and makes repeat use almost automatic.

Re Engagement with Cart Reminders and Trial Prompts

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.

Stage 3: Engagement – How Does Walmart Keep Customers Coming Back?

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.

how does walmart retain customers

Personalized Recommendations Based on Shopping History

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.

Smart Search and Predictive Restocks with AI

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.

Cross Channel Personalization in App, Web and Store

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.

Real Time Rollback Deals and Seasonal Offers

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.

Behavioral Segmentation for Frequent and Lapsed Shoppers

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.

Stage 4: Loyalty – How Does Walmart Build Long Term Retention?

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.

how does walmart retain customers

Walmart Plus Loyalty Program Benefits

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.

Category Specific Rewards and Discounts

Loyalty benefits go beyond shipping. Walmart offers perks tailored to categories:

  • Groceries: free same-day delivery.
  • Electronics: early access to hot releases.
  • Pharmacy: discounts on prescriptions.
    These category-driven rewards ensure loyalty feels relevant to each customer’s needs.

Emotional Loyalty with Community and Sustainability

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.

Customer Reviews and Social Proof in App

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.

What Is Walmart’s Secret to Retaining Customers?

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:

walmart's customer retention summary table
  • Commit to your business. Walmart stays all-in on everyday low prices.
  • Share profits with your associates. Employee discounts and recognition drive loyalty inside and out.
  • Motivate your partners. Supplier relationships keep shelves stocked and costs low.
  • Communicate everything you can. Walmart makes value simple and visible across every channel.
  • Appreciate associates. Employees become loyal shoppers too, spending billions annually at Walmart.
  • Celebrate success. Publicly highlighting customer milestones and employee achievements reinforces trust.
  • Listen to everyone. Surveys, reviews, and app ratings directly shape improvements.
  • Exceed customer expectations. Free delivery, fast fulfillment, and returns policies go beyond the basics.
  • Control expenses better than your competition. Cost discipline makes low prices sustainable.
  • Swim upstream. Walmart experiments with tech (AI pricing, Scan & Go) before many competitors.

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’s Use of Data, AI and Cross Channel Journeys

Walmart has transformed into a data-first retailer. Its retention strategy now runs on AI and omnichannel orchestration.

  • AI-powered pricing: Adjusts tens of thousands of SKUs in real time, anchoring trust in affordability.
  • Predictive analytics: Recommends essentials (milk, diapers, cleaning supplies) before customers run out.
  • Omnichannel orchestration: Carts sync across app, web, and store. Pickup Towers, Scan & Go, and same-day delivery all link back to the app.
  • Personalized journeys: Emails, push alerts, and app banners vary by segment - frequent buyers, seasonal shoppers, or lapsed users.
  • Inventory intelligence: AI-driven demand forecasting keeps shelves stocked, reducing customer frustration (a critical retention driver).

Why Lifecycle Marketing Matters for Walmart

For Walmart, lifecycle marketing isn’t a theory. It’s how the company keeps 140 million weekly shoppers in its orbit.

  • Awareness: Everyday Low Prices campaigns anchor Walmart as the “always affordable” choice.
  • Onboarding: Walmart Plus free trials hook new users with immediate value.
  • Engagement: AI-driven recommendations keep carts full and reorders frequent.
  • Loyalty: Walmart Plus perks and employee discounts deepen stickiness.

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.

How Retention Marketing Drives Growth for Retailers

Retention isn’t a “nice-to-have” - it’s the growth lever that protects margins. Walmart proves it:

  • Lower costs: Keeping a customer is 5–25x cheaper than acquiring a new one.
  • Predictable revenue: 40M Walmart Plus subscribers = recurring fees + higher purchase frequency.
  • Customer lifetime value (CLV): Repeat buyers shop more categories - groceries, pharmacy, fuel - making each account worth more.
  • Word of mouth: Loyal customers bring in new shoppers at almost zero cost.

Takeaway: Retention marketing scales profit. Acquisition may fill the funnel, but retention fills the balance sheet.

Walmart’s Competitive Edge Against Amazon

Walmart doesn’t try to out-Amazon Amazon. It wins by combining pricing power + physical reach + omnichannel convenience.

  • Price: EDLP, backed by $270B in private-label sales, keeps Walmart cheaper.
  • Stores as fulfillment: 5,000+ U.S. stores double as distribution hubs, giving Walmart 93% U.S. coverage for same-day delivery.
  • Loyalty pricing: Walmart Plus undercuts Prime while offering similar perks (free shipping, fuel discounts).
  • Employee loyalty: 1.6M associates shop at Walmart, generating $1.6B in sales annually—a built-in retention flywheel Amazon can’t copy.

Bottom line: Amazon dominates digital, but Walmart turns its store network into a retention moat.

Final Takeaway: What Can Brands Learn from Walmart’s Retention Strategy?

Walmart’s retention strategy shows that loyalty isn’t built on one channel or one program. It’s built on consistency across the lifecycle.

  • Price as the hook. Everyday Low Prices create awareness and trust.
  • Frictionless onboarding. Walmart Plus trials, app flows, and first-order perks make the first experience smooth.
  • Habit-driven engagement. AI recommendations, rollbacks, and cross-channel sync keep customers shopping weekly.
  • Deep loyalty. Walmart Plus perks, employee discounts, and sustainability commitments turn shoppers into advocates.

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.

Must Read for You 🔍

Customer Retention Strategies: Proven Snapchat Techniques to Retain Customers

Customer Retention Strategies: Proven Spotify Techniques to Reduce Churn

Customer Retention Strategies: Top 12 Proven Netflix Techniques to Reduce Churn

Customer Retention Strategies: Top 15 Proven Pinterest Techniques to Reduce Churn

Top 12 Proven Customer Retention Strategies to Retain Customers at Headspace

Los Tacos No. 1’s Retention Strategy 2025: How It Builds Loyal Customers

MyFitnessPal Customer Retention Strategy: How the Fitness App Builds Loyalty at Scale

Amazon Customer Retention Strategy

Uber's Retention Strategy: How Does Uber Retain Customers

Klaviyo Email Marketing Agency

Top 5 Braze Email Marketing Agencies in the USA

Which Are The Best e-commerce email Marketing Agencies

Frequently Asked Questions [FAQs] on Walmart’s Retention Strategy

How does Walmart retain its customers?

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.

What is Walmart’s loyalty strategy?

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.

What role does Walmart Plus play in customer retention?

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.

What are Walmart’s customer engagement strategies?

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.

How does Walmart compete with Amazon on retention?

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.

Author
Medha Pandey | Propel
Ready. Set. Launch!

We can help you launch your next lifecycle marketing campaign within 5 hours!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Table of contents

Scale Faster with
AI-Augmented, Human-led Lifecycle Marketing

Frequently Asked Questions

Why is customer retention important for Walmart?

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.

How many members does Walmart Plus have in 2025?

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.

What technology does Walmart use to retain customers?

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.

How does Walmart build emotional loyalty with customers?

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.

What can other retailers learn from Walmart’s retention strategy?

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.