'Know the numbers' is the best advice that anyone can give you when it comes to membership marketing. Knowing the numbers can help answer key marketing questions like: 'What is the value of a member?', 'How much can I afford to spend to obtain a member?', and 'What is my membership retention rate?

1. The Economics of
Membership
Presented by
Tony Rossell
Senior Vice President

2. Our Plan for Today
• What you will learn from this session
• Theory of Membership Economics
• Application to your Client
Associations
• Group Practice and Strategy
Implications

3. Key Membership Calculations
• Response Rate
• Cost to Obtain a Member
• Renewal Rate
• Average Tenure
• Lifetime Value
• Maximum Acquisition Cost
• Steady State Analysis

4. Response Rate
Response rate measures the
number of prospects who responded
to a marketing effort.
– Total number of responses / Total number of
prospects contacted X 100.
– Example: (250/ 50,000) x 100 = .50%