Subscriber acquisition cost

Discover how Subscriber Acquisition Cost (SAC) helps businesses measure the cost of acquiring new subscribers. Learn how to track, analyze, and optimize SAC to improve profitability and customer growth.

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KPI Details

Category

Marketing
Type

Lagging Indicator
Calculation

SAC = Total Marketing & Sales Costs / Number of New Subscribers Acquired
Measure

Tracks the total cost required to acquire each new subscriber, helping businesses optimize marketing budget allocation.
Data Sources:

Google Analytics, HubSpot, Salesforce, Stripe, Recurly, Chargebee, ProfitWell, Baremetrics.
Frequency

Tracked monthly or quarterly to evaluate acquisition efficiency and marketing ROI.

Example target

Reduce Subscriber Acquisition Cost by 15% in Q3 by improving ad targeting, optimizing landing pages, and enhancing referral programs.

Example Reports Use Case

A Growth Marketer tracks SAC to measure campaign efficiency. If SAC is too high, they may refine ad targeting, improve conversion funnels, or adjust pricing strategies to improve return on investment.

KPI Example

Best Practices for Subscriber Acquisition Cost

  • Optimize Paid Advertising Spend

    Refine audience targeting and bidding strategies to lower acquisition costs.

  • Improve Website & Landing Page Conversion Rates

    Enhance UX, CTAs, and messaging to convert visitors into subscribers more efficiently.

  • Leverage Referral & Organic Growth Channels

    Encourage word-of-mouth marketing and organic content strategies to reduce reliance on paid acquisition.

  • Track & Adjust Marketing ROI Regularly

    Monitor SAC across different campaigns and channels to optimize performance.

What is Subscriber acquisition cost

Subscriber acquisition cost (SAC) is the total cost a business incurs to gain a new subscriber. It is calculated by adding all marketing and sales expenses such as advertising, content creation, and promotional campaigns and dividing that total by the number of new subscribers acquired. SAC is a key performance indicator for subscription-based businesses, as it helps evaluate the efficiency of marketing efforts, guides budget allocation, and informs decisions about future growth strategies.

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