Membership renewal is a critical part of yearly operations and goals for associations. When members are satisfied, so is your bottom line. Everyday operations and communication with members will lead to wins and losses, so as you set goals for a new year be sure to include a check-in with your renewal rate. Put the renewal rate calculation to use while planning, setting goals, and in your annual review.
Your renewal rate is the percentage of members that renew their membership over a given period. First, gather the necessary data: your members up for renewal, and how many members renewed. Once you have these ready to go, solving for the renewal rate is not difficult, simply plug it into this calculation:
# of Renewals ÷ Eligible Members
For example: In 2021, 3,000 members were up for renewal and 2,825 renewed.
2,825 ÷ 3,000 = .94.
Renewal rate = 94%.
Keep your members at the heart of your organization’s mission by tracking your renewal rate. Take this number one step further and reach out to members to see how you might be able to address their needs more intentionally. Try this calculation and see how it can work for you!