Membership Equations

I thought I’d share a list of equations that membership professionals have been using over the years to track their membership and marketing results.

It’s important to know your numbers so you can chart your success.

Membership is a numbers game -- make sure you’re tracking your results with these simple equations.

Renewal Rate

(Current members minus Number of new members) divided by Number of members in the past year

Attrition

1 minus Renewal Rate

Market Penetration

Number of current members divided by Number of potential members

Average Dues Revenue

Total Dues Revenue divided by Number of Members

Average Non-Dues Revenue

Total Non-Dues Revenue divided by Number of Members

Average Cost to Service a Member

Total Membership Expenses divided by Number of Members

Lifetime Value of a Member

(Average Dues + Average Non-Dues) x Average Number of Years of Membership

Keep these formulas handy. Know your numbers!

Just Say No!

Easier said than done!

Agreed, but you need to find a way to say no or your chamber will try and be all things to all people.

We can’t be all things to all people. Let me repeat that, we can’t be all things to all people.

Successful chambers figured that out a long time ago. Decide what kind of chamber you want to be and live it every day.

Read previous post HERE on the Hedgehog Theory from Jim Collin’s book, Good to Great. Through your strategic planning process you should have the road map to success.

Are you an advocacy chamber, economic development chamber or a networking chamber?

I’d suggest you should be known for one and live that brand. I’m not suggesting which you should be, just the fact that you should focus on one of them as your brand.

Your brand on the street should be:

• The chamber that advocates;
• The chamber that brings jobs to the community; or
• The chamber where you can network for business opportunities.

I’ll grant you that you may be doing all three, but pick one to plant your stake in the ground.

That’s your marker. That’s your brand!