Managing your subscriber acquisition cost (SAC) involves you spending just enough to get new subscribers in the door, without feeling like you're buying them a first-class ticket to the moon! It plays a pivotal role in shaping how product managers evaluate growth strategies and resource allocation.
Subscriber acquisition cost (SAC) refers to the total expense incurred by a business to acquire a new customer or subscriber. This cost encompasses marketing and sales efforts, advertising, promotions, onboarding, and any other services provided to win the customer over.
You can use SAC to evaluate the efficiency of customer growth campaigns, ensuring that marketing, sales, and services investments yield a positive return. The key components of SAC typically include marketing and advertising spend, sales costs, and services costs.
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