Member Acquisition Cost (MAC) is a key business measure used in gyms and fitness centers to track how much money is spent to bring in each new member. It includes all the costs of marketing, sales efforts, and promotions needed to get someone to join. Think of it like a receipt that shows how much the gym had to spend to convince one person to sign up. Gym managers use this number to make sure they're not spending more on getting new members than those members will bring in through their memberships. It's similar to Customer Acquisition Cost (CAC) used in other businesses, but specifically focused on gym membership sales.
Reduced Member Acquisition Cost by 30% through targeted social media campaigns
Tracked and analyzed MAC to optimize marketing budget allocation
Implemented strategies that lowered Member Acquisition Cost from $200 to $150 per new signup
Typical job title: "Gym Managers"
Also try searching for:
Q: How would you develop a strategy to reduce member acquisition costs while maintaining membership quality?
Expected Answer: A strong answer should discuss analyzing current marketing channels, implementing referral programs, using data to target the right audience, and balancing cost reduction with maintaining service quality.
Q: How do you calculate ROI on marketing spend relative to member acquisition cost?
Expected Answer: Should explain how to track marketing expenses, conversion rates, and lifetime value of members to determine if acquisition costs are justified by member revenue.
Q: What methods have you used to track member acquisition costs?
Expected Answer: Should mention tracking marketing expenses, sales team costs, promotional costs, and using spreadsheets or software to monitor costs per new member signed up.
Q: How do you determine if member acquisition costs are too high?
Expected Answer: Should discuss comparing costs against industry standards, analyzing member lifetime value, and evaluating return on investment from marketing campaigns.
Q: What factors contribute to member acquisition cost?
Expected Answer: Should list basic components like advertising costs, sales staff salaries, promotional materials, and marketing campaign expenses.
Q: Why is tracking member acquisition cost important for a gym?
Expected Answer: Should explain that it helps determine profitability, guides marketing decisions, and ensures the gym isn't spending more on getting members than they'll make from memberships.