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Common Membership Calculations
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  • Retention RateRetention Rate is the percentage of members retained over a given period of time. This metric can be calculated if you know how many members you had at the beginning of a period, and many you had at the end of a period.
  • Lapse Rate (Churn)Lapse Rate (Churn) is the percentage of members that discontinue their membership over a given period of time.
  • Renewal RateRenewal Rate is the percentage of members that renew their membership over a given time period.
  • Average Membership Tenure (AMT)Average Membership Tenure is the average length of time a member stays with the organization. This can be useful in projecting expected membership tenure for new members
  • Member Lifetime Value (MLV)Member Lifetime Value (MLV) is the measure of monetary value of a member based on projected length of membership.
  • Member Acquisition Cost (MAC)Member Acquisition Cost (MAC) is the total monetary cost associated with recruiting a new member. To effectively maintain and/or grow an organization, it is necessary to assign an average monetary value to potential membership sales.
  • MLV to MAC ratioMLV to MAC ratio is the measurement of the relationship between the lifetime value of a member and the cost of acquiring that member. Best Practice: Aim for 3:1 as the target ratio.


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