Reducing advertising cost per new subscriber by 37%
The challenge
The business was acquiring new subscribers at an advertising cost of CAD 99, above their average first payment of CAD 81. The owner wanted to improve acquisition profitability and determine how much to invest.
Results
- 2,580
- New paying subscribers acquired through advertising over the year
- −37%
- Advertising cost per subscriber: from CAD 99 to CAD 62
- 3.1:1
- LTV / full CAC ratio, with LTV calculated on gross margin
- ≈ 3 months
- Full acquisition cost payback period
January to December 2021 · CAD 160,000 in annual advertising spend.
Gross-margin LTV: CAD 312 · Full acquisition cost: CAD 102.