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# Guide to Calculating Membership Retention Rate

Dec 18, 2022

Guide to Calculating Membership Retention Rate

Retaining members is an important part of running a successful membership organization. Without a solid membership retention rate, the organization will struggle to maintain its current level of success and further growth will be difficult. Fortunately, calculating your membership retention rate is a simple process that will give you an insight into the effectiveness of your membership retention efforts.

This guide explains how to calculate your membership retention rate so you can better understand your progress, identify areas of improvement, and make informed decisions about how best to retain your members.

What is Membership Retention Rate?

Your membership retention rate is the percentage of members who remain active in the organization from one period to the next. It is a measure of the number of members who renew their memberships (or remain active) compared to the number of members who drop out or become inactive.

The higher your membership retention rate, the more successful your organization is in retaining its members and the more likely you are to have sustained success in the future.

How to Calculate Membership Retention Rate

The formula for calculating membership retention rate is as follows:

Retention rate = (Number of retained members/Number of members at the beginning of the period) x 100

For example, if your organization had 200 members at the beginning of a given period, and 180 members at the end of that period, the retention rate would be:

Retention rate = (180/200) x 100 = 90%

It is important to note that this calculation only gives you a snapshot of your organizations membership retention rate for a given period. To get a more complete picture of your retention rate, you should calculate the rate for multiple periods and compare the results.

Tips for Improving Membership Retention Rate

Now that you know how to calculate your retention rate, here are a few tips to help you improve it:

Make sure your members understand the value of your membership and the benefits they are getting.

Make it easy for members to renew their memberships.

Offer incentives for renewing memberships.

Encourage members to refer their friends and family to the organization.

Keep members informed of new developments and activities.

Provide a forum for members to share ideas and engage in discussion.

Hold events and activities that keep members engaged.

Offer discounts and special offers to members.

Conclusion

Calculating your membership retention rate is an important step in understanding the effectiveness of your membership retention efforts. With this information, you can make informed decisions about how best to retain your members and ensure your organizations continued success.

Follow the steps outlined in this guide to calculate your membership retention rate and use the tips provided to make improvements where necessary. With the right strategies in place, you can ensure your organization reaches its full potential