How to calculate Renewal Rate for members and subscribersTo calculate your renewal rate. You will need two pieces of data:
- Total members or subscribers from last year
- Members or subscribers that renewed for the year you are complete the CDP survey for
You’ll then take the number of renewed members and divide that with the total members from last year. And you’ll multiply it by 100 to get a percentage.
(renewed / total members last year) x 100 = renewal rate
Example: A community theater had 353 individual members in 2018 and 200 individual members renewed for the 2019 season.
200 / 353 = .5665722
.5665722 x 100 = 56.65722.
This org would round up and enter 57 for their Members - Individual(s) renewal rate
Why do we collect this information?
This data point is significant because it provides a measurement of loyalty and retention. A lot of organizations rely on their most loyal supporters and patrons, so understanding to what extent people are sticking with your organization year after year is important. Additionally, entering this data into the CDP survey helps us understand member and subscriber patterns across the sector, which we in turn can share back to participating organizations to help inform your planning and strategy.
