Subscriber acquisition cost
Subscriber acquisition cost or SAC is a metric that measures the amount of money a company spends for each new customer.
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.
Recent Mentions on Fool.com
- Disney?s Movies Are Not a Silver Bullet Against Cable Losses
- 3 Companies That Could Acquire Netflix
- Sprint Corp Drops Out of 2016 Spectrum Auction -- What Investors Need to Know
- 5 Disruptive Tech Trends That Could Dominate in 2016
- This $10 Billion Startup Could Be The Biggest Victim Of The Cloud Storage Pricing Wars
- 5 Stocks Under $10 Worth Buying