Hello,
As I have received several different opinions on this topic, I wished to reach out for clarification-what is everyone’s process on calculating retention rate of Club Members by month & by year?
And what is the difference between this and attrition rate?
Thank you so much for your assistance!
Retention measures how many you people you keep over a time period while attrition (or churn) more so measures how many people you lose.
Whenever I am with other industry people that do the line of work we do, they often ask these bragadocious questions like, “What’s your retention rate?” but fail to specify the most important variable, which is time.
An annual retention rate is going to differ from a monthly or 5-year retention rate. It’s not a bad idea to track them all, but you’ll have to determine which is most valuable for your winery. If you started your Wine Club 6 months ago, your annual retention rate is going to be much better than a winery that has a 20-year-old Wine Club.
There are several ways to calculate this, but here’s a simple one:
Retention Rate = ((CE-CN)/CS)) X 100
CE = number of customers at end of period
CN = number of new customers acquired during period
CS = number of customers at start of period
