A Step By Step Guide To Calculate The Retention Rate Of Members

Membership management software is an integral part to most associations as it helps with member retention and the results are obvious.  However, there may be times where you might want to know the exact figures to keep better track of retention rates and this post shows you how to calculate that.

The method used for figuring member retention is expressed as {(EM-NM)/SM} x 100, which might seem complicated at first.  EM (end members) refers to the members at the end of a time period, NM (new members) refers to the new members acquired during a period, and SM (starting members) refers to the members at the start of the period.

 

To begin, pick a time period you want to focus on or know more about and check the number of members your association had at the end of the period.  That’s the end members, or EM, and it can be figured by adding starting members and new members that were gained, then subtract any lost members.

 

Recruited members are new to the association and for that reason they are not used in the calculation.  To know how many members stayed, take the number of members that joined your association during the selected time period (NM) and subtract it from the number of members at the end of the period (EM).  That is, EM-NM.

 

In order to calculate the figure for retained members as a ratio to the members at the start of the period, take the number from the previous calculation, EM-NM and divide it by starting members.  That is (EM-NM)/SM and then multiply that figure by 100 to express it as a percentage rate.

For instance, let’s assume an organization has 400 members at the beginning and gains 60 members but loses 20 of them during the period.  In this example, SM = 400, EM = 400 + (60 – 20) = 440, NM = 60, so subtract new members from end members, 440 – 60 = 380.  Remember, the retention rate is expressed as {(EM-NM)/SM} times 100 which would be 380/400 x 100 = 95%.  Frequently do these calculations and always use good membership management software to boost retention rates!