What is LTV and why is it the core metric for long-term growth?
Lifetime Value (LTV) — also referred to as Customer Lifetime Value (CLV) — is the predicted total revenue a customer will generate throughout their entire relationship with a company.
It includes all future purchases, renewals, upsells, cross-sells, and retention cycles.
LTV is one of the most strategic metrics in digital marketing because it defines how much you can afford to spend to acquire a customer (CAC) while staying profitable.
It is essential for e-commerce, SaaS, B2B services and any business model where customers return or subscribe.
LTV answers key strategic questions such as:
- How much is a customer acquired today really worth?
- Is my CPL / CAC justified by the long-term value?
- Which customer segments deliver the highest ROI?
- Can I scale my budget safely, or am I overpaying for acquisition?
- Is my marketing building long-term value or just short-term traffic spikes?
Why LTV is critical in 2026
With rising Google Ads costs, increasing competition, and more expensive acquisition, knowing your LTV becomes a competitive advantage.
Brands that understand LTV can:
✔ scale budgets with confidence,
✔ make better strategic decisions,
✔ optimise spend across channels,
✔ plan 12–24 months ahead instead of reacting month-to-month.
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