6+ Tips: How to Calculate Membership Retention Rate Easily

how to calculate membership retention rate

6+ Tips: How to Calculate Membership Retention Rate Easily

The percentage of members who remain active in a program or organization over a specific period represents a critical metric for assessing its health and sustainability. It is derived by subtracting the number of new members acquired during the period from the total number of members at the end of the period, dividing the result by the number of members at the beginning of the period, and multiplying by 100. For example, if an organization begins with 100 members, gains 20 new members, and ends with 90 members, the calculation is: ((90 – 20) / 100) * 100 = 70%. Thus, the membership retention rate is 70%.

Tracking this key indicator provides valuable insights into member satisfaction, the effectiveness of member benefits, and the overall value proposition offered. A high figure generally indicates that members are finding value and are likely to continue their association. Conversely, a low percentage may signal underlying issues needing attention, such as inadequate engagement, unmet expectations, or superior alternatives. Monitoring this trend allows for proactive intervention to address concerns and improve member experience, ultimately contributing to long-term organizational stability.

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