How to measure customer loyalty for your F&B & why it matters

Liang Wei Liaw • February 29, 2024

Understanding and measuring the return on investment (ROI) of loyalty programs is important for F&B businesses. Retaining customers and enhancing loyalty through various strategies, is where Customer Relationship Management (CRM) systems play a pivotal role. This discussion delves into the key metrics that matter in measuring loyalty ROI, with a focus on CRM's integration into customer loyalty solutions.

The Role of CRM in F&B Loyalty Programs

CRM systems are more than just databases. They are dynamic tools that F&B businesses leverage to track, analyze, and interact with members to constantly re-engage them to bring them back to your F&B business. By integrating loyalty programs into CRM, businesses can offer personalized experiences that resonate with individual preferences and behaviors, thereby enhancing customer satisfaction and loyalty.

Key Metrics for Measuring Loyalty ROI

Customer Lifetime Value (CLV)

CLV represents the total revenue a business can expect from a single customer account throughout their relationship. It is a important metric for understanding the long-term value of investing in customer loyalty programs. A high CLV indicates that the loyalty program is effectively encouraging customers to return and spend more over time. This data can be tracked through CRM solutions by looking at customer's spending history over a period of time.

Repeat Purchase Rate (RPR)

Repeat Purchase Rate (RPR) measures the percentage of customers who return to make additional purchases over a specific period. This directly reflects the success of loyalty programs in encouraging repeat business for your F&B business.

How RPR is Calculated

RPR is calculated by dividing the number of customers who have made more than one purchase by the total number of customers, then multiplying by 100 to get a percentage. For example, if an F&B business has 100 customers and 30 of them have made more than one purchase, the RPR would be 30%.

Why RPR Matters

Indicator of Customer Loyalty: A high RPR signifies strong customer loyalty, as customers are choosing to return and make additional purchases.
Feedback on Customer Satisfaction: Repeat purchases can also indicate customer satisfaction with the product or service, as customers are unlikely to return if their previous experience was unsatisfactory.
Predictive of Long-Term Success: Businesses with higher RPR are likely to experience more stable revenue streams and can predict future growth more accurately.

CRM systems enhance the ability to track and analyze RPR by segmenting customers based on their purchasing behavior, enabling targeted marketing strategies to increase this rate.

Redemption Rate

The Redemption Rate is important for evaluating the effectiveness of a loyalty program's reward structure. It measures the percentage of issued rewards that customers actually redeem.

Significance of Redemption Rate

Engagement Indicator: A high redemption rate suggests that customers are engaged with the loyalty program and find the rewards appealing and valuable.
Program Attractiveness: It reflects the attractiveness of the rewards offered, indicating whether they align with customer desires and expectations.
Optimization Opportunities: Analyzing redemption rates can help businesses identify opportunities to adjust their loyalty programs to better meet customer preferences.

CRM systems play a vital role in tracking redemption rates, as it often serves as the means for members to keep track of and redeem these rewards. As such, CRM systems can offer valuable insights into which rewards are most popular among customers and enabling businesses to tailor their loyalty programs for maximum effectiveness.

Customer Acquisition Cost (CAC) vs. Customer Retention Cost

Understanding the balance between CAC and Customer Retention Cost is essential for F&B businesses to allocate their resources efficiently.

CAC represents the total cost of acquiring a new customer, including advertising and marketing expenses.
Customer Retention Cost involves the expenses related to keeping an existing customer, such as loyalty programs, customer service, and engagement activities.

Why the Comparison Matters

Cost Efficiency: It is generally more cost-effective to retain an existing customer than to acquire a new one. By focusing on loyalty programs, businesses can reduce their overall marketing expenses while maintaining a steady revenue stream.
Long-term Value: Investing in customer retention through CRM-enhanced loyalty programs can significantly increase a customer's lifetime value to the business.

Conclusion

In the F&B industry, measuring the ROI of loyalty programs through CRM systems is not just about tracking sales; it's about understanding customer behavior, preferences, and satisfaction. By focusing on key metrics like CLV, RPR, Redemption Rate, and balancing CAC with Customer Retention Cost, businesses can optimize their loyalty programs, ensuring they deliver value both to the customers and the business itself. Leveraging CRM tools to enhance these programs enables F&B businesses to cultivate lasting customer relationships, driving both loyalty and profitability.

If you are looking to adopt a CRM solution for your F&B business to boost customer loyalty and return spendings, WhatsApp us or send us an enquiry

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Why WhatsApp May Be the Secret Ingredient Missing in Your F&B Marketing

By Liang Wei Liaw • July 21, 2025

In Singapore’s hyper-competitive food and beverage scene, staying connected with your customers is no longer optional—it’s essential. While email has long been the default for digital engagement, F&B businesses are now turning to WhatsApp as the go-to tool for faster, more personal communication. WhatsApp Outperforms Email Where It Matters Open rates that matter: WhatsApp boasts open rates of over 90%, compared to 25% or less for email. That means your promos are far more likely to be seen. Real-time impact: A lunch special sent at 10 a.m. can fill tables by noon—try doing that with email. Fewer steps, higher conversion: With a clean message format and a single tap to redeem vouchers or make bookings, WhatsApp converts better for time-sensitive campaigns. Email Still Has Its Place For storytelling & rich content: Want to showcase your new seasonal menu or behind-the-scenes chef interviews? Email gives you space. Loyalty and automation: Email excels at long-term nurturing, reward systems, and reactivation campaigns. Formal, official communication: Receipts, membership summaries, and full-length newsletters are still best suited for inboxes. Use Both for Best Results Launch flash sales or limited-time vouchers via WhatsApp Share loyalty points summaries, event invites, or reservation confirmations via email Use an integrated F&B POS & CRM solution like MEGAPOS to automate and track both in one place Conclusion Smart F&B chains in Singapore are already using WhatsApp to fill tables, boost voucher redemptions, and stay top-of-mind. Don’t just rely on email alone—diversify your outreach and engage your customers where they are most active. If you are interested in exploring using WhatsApp as a channel for your members engagement campaigns, click here to find out more!

The Modern POS System: Still the Core of F&B Digitalisation in Singapore

By Liang Wei Liaw • July 3, 2025

Singapore's F&B industry has rapidly embraced technology—from QR ordering systems to delivery app integrations and self-service kiosks. But one thing has remained consistent: the Point-of-Sale (POS) system is still the operational hub of every restaurant or café. In a tech-driven landscape where automation is often seen as the solution to rising labour costs and competitive pressure, POS systems have not become obsolete. Instead, they've evolved into more powerful, cloud-connected hubs that support various customer touchpoints and internal workflows. Evolution of POS in Singapore Legacy POS: Cash register-based systems that only supported basic billing. Touchscreen Terminals: Provided real-time inventory tracking and digital receipts. Cloud POS Systems: Enabled multi-outlet management, QR ordering, and CRM integration. Today, modern POS systems are API-friendly, mobile-responsive, and integrate effortlessly with Singapore's payment infrastructure including NETS, PayNow, and mobile wallets. Why POS Systems Are Still Essential Omni-Channel Sales Handling POS systems now consolidate orders from dine-in, QR, online delivery, and kiosks into a single dashboard. Singapore-Ready Payments Seamless support for e-wallets, NETS, and card payments means faster checkouts. CRM Integration Run membership programs, automate voucher issuance, and encourage customer retention. Data-Driven Operations Generate real-time sales reports, GST summaries, and staff performance reviews across multiple outlets. A Smart Business Backbone From small hawker stalls to established franchises in Singapore, the POS system is no longer just a cash register. It’s a smart business backbone that enables growth, enhances customer experience, and reduces inefficiencies. If you're looking to digitalize your F&B business, make sure you start with a reliable POS system. Click here to contact us and find out more!

Top POS System Features Every Restaurant or Cafe Manager Should Use

By Liang Wei Liaw • June 23, 2025

Whether you're managing a boutique cafe in Tiong Bahru or a fast-paced restaurant chain in the CBD, your POS system is central to your success. It’s not just a cash register—it’s your operations hub. Below are the most powerful POS features every F&B manager should be taking full advantage of: 1. Live Sales Reporting Real-time sales dashboards allow managers to make fast, informed decisions. See what’s selling, when your rush hours are, and how much revenue each staff member generates. Whether it’s adjusting your menu or planning your next promo, the data is at your fingertips. 2. Automated Inventory Control Track ingredients and stock across shifts without manual spreadsheets. Each transaction updates inventory counts in real-time, which means fewer stockouts, better forecasting, and reduced wastage—especially critical for kitchens with fresh produce or high food cost items. 3. Integrated QR & Cashless Payments Speed and safety are key in the F&B space. With built-in QR ordering and contactless payment options, your customers can browse the menu, order, and pay—all from their mobile phone. It’s efficient, hygienic, and perfect for cafes with limited staff. 4. Staff Management Tools From clock-ins and shift logs to sales performance, a modern restaurant POS system should include comprehensive staff tracking. Use this data to monitor productivity, reduce time theft, and make informed rostering decisions. 5. Built-in CRM & Promotions Engine Offer loyalty points, auto-discounts, and personalised birthday treats through your POS system. This drives repeat business and improves customer satisfaction, especially for Singapore diners who love rewards and value. 6. Multi-Branch Synchronisation If you're running a chain or planning to expand, you’ll need a POS for multiple outlets . Sync sales, stock, and reporting across locations so HQ can manage from a single backend while giving outlet managers branch-level control. 7. Kitchen Display & Delivery App Integration A POS that connects directly to kitchen displays and delivery apps saves time and avoids double-entry errors. When a customer places an online order, it goes straight to the kitchen—no delay, no miscommunication, no chaos. Conclusion Today’s F&B POS systems are more powerful than ever. With us, you’re not just getting a payment solution—you’re getting a fully integrated restaurant management tool that helps you grow and operate smarter. Explore our solutions by getting in touch —perfect for cafes, cloud kitchens, restaurants, kiosks, and growing F&B chains.