Why LTV Tells You More Than CPA or CAC Ever Will

Let’s be honest: we’ve all obsessed over CPAs.
But there’s a problem with that…

CPA or CAC only tells you what happened at the start of the relationship.
It doesn’t tell you whether your customer came back, bought again, or actually became profitable.

That’s where LTV (Lifetime Value) comes in.

What is LTV?

LTV is the total amount of money a customer spends with your brand over time.

It’s not just their first order, it’s their second, third, fifth…
And more importantly, it’s what determines whether you’re building a sustainable business, or just running an expensive paid media machine.

Why LTV Matters More Than You Think

CPA tells you: “What did the customer cost to acquire?”
LTV tells you: “Did that sale turn into a customer who sticks around?”

If you’re basing your growth strategy purely on acquisition costs, you’re only seeing half the picture. LTV fills in the rest.

Here’s what LTV helps you do:

✅ Make better decisions about paid spend
If you know a customer is worth £100 over 90 days, suddenly a £40 CPA doesn’t look so bad.

✅ Spot your most profitable products and channels
Different entry points lead to different behaviours. Some bring one-off buyers. Others build loyalty. LTV shows you which is which.

✅ Build strategies that compound over time
Retention becomes a growth driver when you’re not constantly chasing new customers.

What You Can Track with Requisite’s LTV Reports

Inside Requisite, you’ll find an entire section dedicated to LTV and cohort analysis. It’s all about helping you understand what happens after the first sale, and how value builds over time.

Here’s what’s inside:

🔁 Rolling LTV Summary

See how customer value grows over 30, 60, 90 days, 12 months and beyond.

⏳ Cohort Retention Timelines

Find out exactly when customers return, how often, and what they spend.

🎯 LTV by Campaign, Product or Channel

Compare LTV based on where customers came from or what they bought first — so you can double down on what really works.

📈 Purchase Frequency

Get clarity on how often your customers return, and what triggers repeat purchases.

What to Do With This Data

Once you know your LTV, you can:

• Set smarter acquisition targets (no more under- or over-paying for customers)

• Build retention flows that match actual buying behaviour

• Segment high-value customers and treat them differently

• Prioritise high-LTV campaigns, creative angles, and product offers

TL;DR

If CPA or CAC shows you the first date, LTV shows you the relationship.

And in eCommerce, it’s the long-term relationships that make you profitable.

Start tracking your customer value over time, not just day one.
That’s how brands scale sustainably.