Last year, we were struggling with low-value subscribers for a SaaS client of ours. We were spending tons on meta ads, pulling in a solid flow of new subscribers—but there was a problem. Most were opting for the cheapest tier. The premium, high-ticket plans? Not many.
The issue wasn’t getting subscribers. It was getting the right ones.
Meta’s default ad optimization was locked in on driving the lowest-cost conversions, which meant our pipeline was filling up with price-sensitive users who bailed after a month. They didn’t need more people signing up—they needed higher-value subscribers willing to commit to premium plans.
We overhauled our bidding strategy, audience targeting, and creative to optimize for revenue, not just conversions. Within 60 days, our average subscription value jumped 38%, and high-tier plan adoption doubled.
Here’s exactly how we trained meta’s algorithm to prioritize high-value subscribers.
Step 1: Optimize meta’s bidding for high-value subscribers
1. Switch to value-based optimization (not just conversions)
Instead of optimizing for “subscription sign-up,” we shifted the event to purchase value, telling meta to prioritize high-value users (e.g., premium plan subscribers).
How? Upload past high-LTV subscribers from your CRM (klaviyo, shopify, etc.) into meta as a value-based custom audience.
Meta’s AI then targets users with similar spending behavior, making it easier to attract people likely to choose the premium tier.
2. Use cost cap bidding to control CAC on premium plans
Rather than letting meta chase the cheapest sign-ups, we set a cost cap at the maximum CPA we could afford for premium plans.
Example: If a $99/month customer needed to be acquired at a $120 CPA to stay profitable, we set the cost cap between $100-$110 to let meta optimize within that range.
This forced meta to prioritize quality over quantity, avoiding cheap sign-ups that churned quickly.
3. Use highest value bidding for scaling premium plans
Once we had solid conversion data from cost cap bidding, we switched to highest value bidding to maximize revenue instead of just sign-ups.
Instead of focusing on getting the most conversions at the lowest price, meta optimized for users likely to spend the most over time.
This strategy worked best when bundling subscriptions (e.g., annual plans instead of monthly).
Step 2: Restructure the audience to attract high-LTV users
1. Build lookalikes from your best subscribers
We exported only premium-tier customers from our CRM and built 1%, 3%, and 5% lookalike audiences.
This forced meta to find more people with similar spending habits instead of optimizing for broad reach.
2. Exclude low-value customers
We negatived out past subscribers who had downgraded or churned quickly.
This prevented meta from optimizing toward users who were unlikely to stick with premium plans.
If you’re running meta ads for a subscription business, stop optimizing for cheap sign-ups. Meta will find you subscribers, but it’s up to you to tell it which ones actually grow your business.
Train the algorithm to prioritize high-value users, and watch your subscription revenue scale—without blowing up your CAC.
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