Platforms Glossary
Subscriber acquisition cost is a organization's calculation of the cost of acquiring new subscribers. To calculate this cost, the cost of sales and the cost of marketing are added together and then divided by the number of new subscribers gained. It is an important metric to businesses of all sizes because it allows them to determine their ROI (return on investment) to ensure that they are making strategic and profitable marketing decisions.
SAC is used by SMBs that provide subscription services. It can also be useful for those that are aiming to grow their social media following and have invested funds in social media ads or other forms of marketing to do so. This metric ensures that SMBs stay on track with their budget and can give insight on whether or not recent marketing efforts have been successful.
