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MGI: The Economics Of Membership

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Tony Rossell
Tony Rossell

'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?

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The Economics of Membership Presented by Tony Rossell Senior Vice President
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
Key Membership Calculations • Response Rate • Cost to Obtain a Member • Renewal Rate • Average Tenure • Lifetime Value • Maximum Acquisition Cost • Steady State Analysis
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%
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership
MGI: The Economics Of Membership

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MGI: The Economics Of Membership

  • 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%