What is subscriber acquisition cost (SAC) ?
SAC is the total cost incurred to acquire a new paying subscriber, including marketing, sales, and onboarding expenses specific to subscription models.
Subscriber Acquisition Cost (SAC) is similar to CAC but specifically focused on the subscription context. It includes all costs associated with converting a prospect into an active paying subscriber, including free trial support costs.
Example: A consumer SaaS app spends $50 on average in paid ads and onboarding support to convert a free user into a paying subscriber at $15/month. With a 24-month average subscription length, the lifetime value is $360, giving a healthy SAC-to-LTV ratio of 1:7.2.
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