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SAC (Subscriber Acquisition Cost)
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.
What Small and Midsize Businesses Need to Know About SAC (Subscriber Acquisition Cost)
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.
Related terms
- Tokenization
- ROIT (Return on Information Technology)
- SAC (Subscriber Acquisition Cost)
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- Chief Revenue Officer (CRO)
- Core Banking System
- Record to Report (R2R)
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling
- Capital Allocation
- Compound Annual Growth Rate (CAGR)
- Net Present Value
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- Selling General and Administrative (SG&A) Expenses
- ROE (Return on Equity)
- Financial Planning and Analysis (FP&A)
- Dollar-Cost Averaging (DCA)
- Procure-to-pay Solution