This article seeks to explain how the Retention Rate metric is calculated.
Overview
Kindful displays Donor Lifecycle Metrics to you on your dashboard to make it easy for you to know how your fundraising efforts are going.
This article seeks to explain how the Retention Rate metric is calculated.
Linked Articles:
Definitions
Donor
For this formula, a "Donor" is a Contact with at least one ("hard money") transaction (regardless of the tax-deductibility of said gift)
Gift
A ("hard money") transaction in Kindful (not a non-cash gift, not a soft credit)
Period 1 and Period 2
Jan 2016 | Feb 2016 | Mar 2016 | Apr 2016 | May 2016 | June 2016 | Jul 2016 | Aug 2016 | Sep 2016 | Oct 2016 | Nov 2016 | Dec 2016 |
Jan 2017 | Feb 2017 | Mar 2017 | Apr 2017 | May 2017 | June 2017 | Jul 2017 | Aug 2017 | Sep 2017 | Oct 2017 | Nov 2017 | Dec 2017 |
Jan 2018 | Feb 2018 | Mar 2018 | Apr 2018 |
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If today's date was in April 2018, then
This is Period 1 |
This is Period 2 |
What is the Retention Rate?
Count of donors with 1+ gift(s) in both Period 1 and Period 2 | / | Count of donors with 1+ gift(s) in Period 1 |
You can use the Contacts filters "Has Transaction in Year" to find the number of people who have had a transaction on both sides of that equation (period 1 + 2; period 1).
If you need another way to think through this formula beyond the example in our guide, here's another example of the equation in action:
# of donors retained (have transaction in both 2017 and 2018) / # who gave in the beginning of your timeframe (2017)
Why is this helpful?
Retaining an existing donor is often more cost effective than acquiring a new one. The Retention Rate metric illustrates your organization's success in this area.
How to View Retention Metrics for Specific Groups of Contacts
From the Dashboard, you can click on the Retention metric, which will take you to a filtered view of Contacts. In the Current View filter bar, you can add in an additional metric to further customize your list. For example, add in the filter "In Group: 'group_name'" to see just certain contacts within a Group that have been retained.