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Sep 30, 2014

We Don’t Have a Retention Problem Part 2

My last blog we talked about how we don’t have a retention problem, we have a generational communication problem.

This blog is going to introduce a new retention metric that we believe is more relevant than donor retention. It’s REVENUE retention.

It’s simply looking at how much revenue you retained from the previous year.

Here’s the same client we discussed in my previous blog, but comparing donor retention and revenue retention.

A mid 30 percent second year retention is pretty good.

But look at revenue retention! It’s over 50%. And really, isn‘t that the most important metric?

For this client, it means they are retaining the higher value donors. OK, obviously we want high retention. But if you are retaining over 50% of the revenue from your new donor class, you are doing great.

So add this as a metric of things you should start to track.


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