Published on July 8, 2008
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%
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