Customer Lifetime Value (LTV) refers to the projected revenue a customer will generate over their lifetime as a paying client. It considers average purchase value, purchase frequency, and customer lifespan.
LTV = Average Purchase Value × Purchase Frequency × Customer Lifespan
For service-based businesses like landscaping, this includes recurring lawn care, seasonal projects, upgrades, and referrals. A higher LTV means you can afford to spend more on CPC, CPL, or PPC campaigns to acquire a client because their long-term value outweighs the upfront CAC.
LTV is foundational for decisions in budgeting, pricing, and CRO, guiding whether your marketing strategy drives not just conversions—but profitable relationships.
LTV is one of the most strategic metrics for landscaping companies aiming to grow sustainably. For example, if a client signs up for lawn care services ($250/month) and stays for 24 months, their LTV is $6,000. If your CAC to win that client is $600, that’s a 10x return—a strong ratio.
Knowing your LTV also helps prioritize marketing efforts toward high-value customer segments and justifies investing in upselling, retention, and client nurturing strategies, not just lead generation.
Example
Let’s say your average client hires you for a $2,500 landscaping job and then purchases $500 in seasonal maintenance annually for 3 more years. The LTV would be:
$2,500 + ($500 × 3) = $4,000
If your CAC is $400, you’re operating at a healthy 10:1 LTV:CAC ratio, meaning your paid traffic efforts are profitable over the long term.