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Average Membership Tenure (AMT)

Updated
The Goal: Calculate Average Membership Tenure (AMT) — the average length of time a member stays with your organization — so you can project the expected tenure of new members.

Before You Begin:

  • AMT is derived from your Lapse Rate, so you need that figure first. See Lapse Rate (Churn) for how to calculate it.
  • Express the Lapse Rate as a decimal (for example .10), not as a percentage.
CALCULATION: 1 ÷ Lapse Rate = AMT

Step-by-Step Instructions

  1. Calculate your Lapse Rate as described in Lapse Rate (Churn).
  2. Divide 1 by the Lapse Rate. The result is your Average Membership Tenure, in years.

For example, with a Lapse Rate of .10:

1 ÷ .10 = 10
Average Membership Tenure in Years is 10 years

Common Pitfalls

  • Dividing by a percentage instead of a decimal: A 10% lapse rate is .10, not 10. Dividing 1 by 10 gives 0.1 years, not 10 years.
  • Mismatched periods: AMT is only as sound as the Lapse Rate behind it. Make sure the two figures used to produce that Lapse Rate cover the same date range.

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