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Subscriber acquisition cost

Subscriber acquisition cost or SAC is a metric that measures the amount of money a company spends for each new customer.

Expanded Definition

This is an important metric to investors of subscription-based companies because it allows them to see the true effectiveness of marketing dollars compared to previous quarters or years. This is favored over raw marketing spend. For example, a company could be spending $10 million more in marketing than the previous year, but if each new customer costs them less than it did last year, their marketing dollars are being put to good use.

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