Customer Loyalty Starts With Relationship Building

Putting the customer first can pay off

Everyone knows the importance of bringing in new customers, but true business leaders know getting people through the door is only the first step. That’s a huge part of why Walmart founder Sam Walton was so committed to putting the customer first—it can pay dividends over time. But building those relationships takes time, effort and a little bit of strategy.

Why customer loyalty matters

Attracting new customers to your business has always been costly, but research indicates it’s become even more expensive in the last several years. From 2013 to 2022, the price of acquiring a new customer rose more than 200%. The exact figures vary from industry to industry, but common wisdom says that the average business spends 5 to 25 times more getting a new customer than it would need to keep a customer it already has. 

Existing customers don’t need to be convinced to use your business because they’re already familiar with 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.

Loyal customers are more than just revenue—they’re also a form of hyper-efficient marketing. Each one has a circle of friends and family who trust them. Their recommendation carries more weight than any ad because it comes from a trusted source. Every time they mention a great experience they had with your business, their circle hears it and makes a mental note—and gets one step closer to becoming a customer themselves.

How to build customer relationships & foster loyalty

Understand your customers

If you want your relationship with your customers to be meaningful, lasting and profitable, you need to understand the people you’re dealing with. What do they need from your business? What frustrates them about your competitors? What are their typical spending habits? By answering these questions, you can develop a deeper understanding of your customers. You can then use that understanding to tweak your business and meet their needs.

Customers may appreciate any number of things about how you do business. The easiest way to discover what those factors might be is to ask them. Surveys and focus groups can provide a robust, systematic approach to getting the answers you want. Feedback from social media or your website is another great source of information. Use what you learn to improve your products or services, get ideas for new offerings and show your customers that you care what they think.

Spotlight customer service

When a customer buys something from your business, it’s up to you and your staff to maintain that relationship, and customer service is one of your most effective tools. Customer support can troubleshoot issues, manage customer emotions and solve their problems. In the process, it can transform disappointed customers into your most faithful supporters.

The more ways you can provide support, the better. A dedicated email address is a good start. A phone line or AI-powered chatbot can help resolve more pressing issues. Finally, keep an eye on your social media pages. When dissatisfied comments crop up on your social media pages, respond promptly to show you’re there to help. 

Sam Walton’s fifth rule for building a better business is to appreciate what your team does for the business, and his sixth rule is to celebrate your wins. When your support team transforms unhappy customers into repeat business, call them out. A well-timed word of praise can raise morale on your team, and a little celebration helps everyone have more fun and do better work.

To learn more about the rules Sam Walton used to build Walmart, click here.

Design a loyalty program

Loyalty programs are an excellent way to keep customers coming back for more. Local brick-and-mortar businesses often use a punch card system to encourage repeat visits. It’s a great system because it’s simple to use and it communicates a very clear value—visit enough and you’ll be rewarded.

Other businesses use a system where customers earn points based on how much they spend. They can then redeem those points for free items or discounts. These kinds of programs are more complicated to track than a punch card, but they can offer a wider range of rewards, with higher tiers of participation offering bigger and better bonuses.

Loyalty programs can also include personalized product recommendations, early access to new services or invitations to exclusive in-shop events. Different rewards will appeal to different customers, and it will likely take some trial and error to find the program that works for you. You can kickstart that process through surveys and focus groups, but you’ll still need to watch how customers respond. Try to identify the rewards they use the most, find out why they like them so much and double down on your successes. 

Encourage referrals

Once you’ve got a steady stream of repeat business, it’s time to consider a referral program. Customers who enroll can earn special bonuses for themselves and for any new customers they bring in. That could mean free products, free points in your loyalty program or even straight-up cash. The key is to ensure the reward is exciting enough both for your loyal customer and for the friend they’re bringing in.

Learn more with Walmart Business

Running a business means constantly learning new strategies to help you succeed. Whether you’re looking to read accounting tips, equipment-buying guides or website building tutorials, you can find them on the Walmart Business content hub.

Here’s a tip you can instantly put into action: sign up for a free Walmart Business account to shop thousands of useful items, from computers to colored pencils, at budget-friendly prices. Upgrade to Walmart Business+ Core to unlock no-minimum free shipping,¹ free delivery from a nearby store on orders of $35 or more² and savings of up to $500 a year.³ Click here to learn more.

¹ Excludes most Marketplace items, freight and certain location surcharges.

² Restrictions apply. 

³ Savings based on 1 free $35+ delivery order vs. $9.95 fee and 1 free shipping order under $35 vs. $6.99 fee biweekly, plus 2% Walmart Business Rewards on monthly order >$250 (average value of $400).