Scenario

You are reviewing growth efficiency for a subscription business, and customer acquisition cost has doubled over the last three quarters, rising from about $120 per new customer to $240. Leadership is worried because paid acquisition spend has increased, but new customer growth has not kept pace. At the same time, the business has expanded into new channels and adjusted pricing and targeting. You need to determine what could be driving the change and whether the increase reflects worse performance, a mix shift, or a measurement issue.

Question

If you observe that customer acquisition costs have doubled over the last three quarters, what potential factors could be driving this trend?