Terms

Lead Velocity Rate

Lead Velocity Rate measures the month-over-month growth percentage of qualified leads. This metric serves as a real-time indicator of pipeline development and is a strong predictor of future revenue and long-term growth. Unlike sales velocity, which tracks the speed of deals, LVR focuses on the growth in the number of leads entering the sales funnel.

Importance of Lead Velocity Rate

Unlike lagging metrics like monthly revenue, LVR is a leading indicator of future success. It provides a real-time view of your pipeline's growth, making it a powerful predictor of future sales. This allows for more accurate forecasting, removing much of the guesswork from growth planning.

Monitoring LVR allows teams to make rapid strategic adjustments to their campaigns. If lead growth falters, you can act immediately to prevent a future revenue dip. This ensures a consistently growing pool of qualified leads, which is vital for sustainable business growth.

Calculating Lead Velocity Rate

This is how you calculate your Lead Velocity Rate.

  1. Identify the number of qualified leads for the current and previous months.
  2. Subtract the previous month's lead count from the current month's count.
  3. Divide the difference by the previous month's lead count.
  4. Multiply the result by 100 to get your LVR percentage.

Lead Velocity Rate vs. Sales Velocity

While both metrics are crucial for sales teams, they measure different aspects of performance and pipeline health.

  • Lead Velocity Rate: This metric tracks the growth of qualified leads, acting as a leading indicator for future revenue. It's ideal for enterprises and SaaS companies focused on long-term, predictable growth. However, its value depends on accurate lead qualification and it doesn't measure actual deal closures.
  • Sales Velocity: This metric measures the speed at which deals close, focusing on pipeline efficiency. It's a key performance indicator for mid-market companies needing to optimize cash flow and shorten sales cycles. As a lagging indicator, it reflects past performance and can sometimes mask lead generation problems.

Improving Lead Velocity Rate

Improving your Lead Velocity Rate requires a strategic focus on both the quantity and quality of incoming leads. By consistently monitoring this metric, you can make proactive adjustments to ensure a healthy and growing sales pipeline.

  • Qualify: Define and maintain strict criteria for what constitutes a qualified lead to ensure the metric reflects true sales potential.
  • Adjust: Use LVR as a real-time indicator to quickly modify marketing and sales tactics if lead growth slows down.
  • Set: Establish clear monthly or quarterly growth targets for qualified leads to drive continuous improvement.

Impact of Lead Velocity Rate on Business Growth

LVR directly impacts a company's growth trajectory by providing a clear, forward-looking view of the sales pipeline.

  • Forecasting: Predicts future revenue more accurately than lagging metrics.
  • Agility: Enables rapid strategic adjustments to marketing and sales efforts.
  • Scalability: Supports long-term growth planning by ensuring a steady lead influx.

Frequently Asked Questions about Lead Velocity Rate

How often should I calculate Lead Velocity Rate?

LVR is typically calculated monthly to align with sales cycles and reporting periods. This frequency provides a consistent view of your pipeline's growth, allowing for timely strategic adjustments without being overly reactive to daily fluctuations.

Is a high LVR always a good sign?

Not necessarily. A high LVR is only valuable if the leads are well-qualified. A surge in low-quality leads can inflate the metric without translating to actual revenue, potentially wasting sales resources and skewing forecasts.

What is a good Lead Velocity Rate to aim for?

While benchmarks vary by industry and company stage, many SaaS companies aim for 10-20% month-over-month growth in qualified leads. The key is to set a realistic target that aligns with your overall revenue goals and market conditions.

Other terms

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Quality Assurance

Quality Assurance (QA) is the systematic process of ensuring a product or service meets specified quality standards from development to delivery.

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Jobs to Be Done Framework

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Jobs to Be Done Framework

Business Continuity

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Dark Funnel

The Dark Funnel describes customer buying activities that are untrackable by companies, such as private chats and word-of-mouth referrals.

Dark Funnel

User Experience

User Experience (UX) refers to a person's overall feelings and perceptions while interacting with a product, system, or service.

User Experience

CRM Data

CRM data is the information businesses use to manage customer relationships. It covers contact details, purchase history, and communication logs.

CRM Data

CRM Enrichment

CRM enrichment is the process of adding third-party data to your existing customer profiles to make them more complete and accurate.

CRM Enrichment

End of Day

End of Day (EOD) refers to the close of business hours. It's a common deadline for tasks and reports to be completed before the workday ends.

End of Day

Pipeline Management

Pipeline management is the process of tracking and managing potential customers as they move through the different stages of your sales process.

Pipeline Management

Sales Territory Planning

Sales territory planning is the process of dividing customers into geographic areas to be assigned to specific sales reps or teams.

Sales Territory Planning

Buyer Behavior

Learn about buyer behavior, including understanding the buyer's journey, influencing factors in buyer behavior, & buyer behavior and marketing strategy.

Buyer Behavior

B2B Data

Learn about B2B data, including sources and types of B2B data, leveraging B2B data for sales success, & ensuring the accuracy of B2B data.

B2B Data

Contact Data

Contact data is the set of details, like names, emails, and phone numbers, used to get in touch with a person or business for outreach.

Contact Data

Conversion Path

A conversion path is the journey a visitor takes to complete a desired goal, such as making a purchase, filling out a form, or subscribing.

Conversion Path

Opportunity Management

Opportunity management is the process of tracking potential sales from first contact to a closed deal, helping teams prioritize and win more.

Opportunity Management

Business to customer

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Dynamic Pricing

Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.

Dynamic Pricing

Subject Matter Expert

A Subject Matter Expert (SME) is an individual with profound knowledge and authority in a particular area, topic, or industry.

Subject Matter Expert

Warm Outreach

Warm outreach is contacting prospects with whom you have a pre-existing connection, like a mutual contact, making your message more personal and effective.

Warm Outreach

Video Prospecting

Video prospecting is the sales technique of sending personalized videos to potential customers to grab their attention and secure more meetings.

Video Prospecting

Average Order Value

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.

Average Order Value

Revenue Intelligence

Revenue intelligence is the process of collecting and analyzing customer data to provide insights that help sales teams make smarter decisions.

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Real-time Data Processing

Real-time data processing is the method of analyzing data the instant it's generated, enabling immediate actions and decision-making.

Real-time Data Processing

B2B Intent Data Providers

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CPM

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Smarketing

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Smarketing

Buying Signal

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Buying Signal

Search Engine Results Page

A Search Engine Results Page (SERP) is the page displayed by a search engine after a user enters a query, listing results ranked by relevance.

Search Engine Results Page

Warm Calling

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Warm Calling

Lead Scoring Models

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Persona

A persona is a semi-fictional profile of your ideal customer, based on market research and real data about your existing customers.

Persona

Data Privacy

Data privacy is an individual's right to control their personal information, including how it's collected, processed, stored, and shared.

Data Privacy

Firewall

A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.

Firewall

Challenger Sales

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Challenger Sales

Sales Process

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Employee Engagement

Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.

Employee Engagement

Competitive Analysis

Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.

Competitive Analysis

Lead Enrichment Software

Lead enrichment software adds crucial data to your leads, like contact info and firmographics, to help you better understand and engage them.

Lead Enrichment Software

Account Match Rate

Account match rate is the percentage of target accounts successfully identified and matched against a specific database or data provider.

Account Match Rate

Field Sales Rep

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Field Sales Rep

Persona-Based Marketing

Persona-based marketing uses fictional customer profiles, or personas, to create targeted messaging for specific audience segments.

Persona-Based Marketing

Video Selling

Video selling uses personalized video messages to engage prospects, build rapport, and guide them through the sales funnel to close more deals.

Video Selling

Customer Data Analysis

Customer data analysis is the process of examining customer information to uncover insights that drive business decisions and improve experiences.

Customer Data Analysis

Email Personalization

Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.

Email Personalization

Personalization in Sales

Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.

Personalization in Sales

Escalations

Escalations are the process of moving a customer issue or sales opportunity to a more senior or specialized team member for resolution.

Escalations

Marketing Metrics

Marketing metrics are quantifiable values that marketing teams use to measure and track the performance of their campaigns and efforts.

Marketing Metrics

Kanban

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Kanban

Bad Leads

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Bad Leads

Marketing Qualified Account

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Marketing Qualified Account

Hybrid Sales Model

A hybrid sales model blends traditional and digital sales methods to engage customers across multiple channels and buying preferences.

Hybrid Sales Model

B2B2C

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B2B2C

Sales Training

Sales training is the process of honing a salesperson's skills and knowledge to enhance their effectiveness and drive sales success.

Sales Training

Sales Operations

Sales Operations, or Sales Ops, streamlines sales processes, manages tools, and analyzes data to help sales teams sell more effectively.

Sales Operations

Rapport Building

Rapport building is the process of establishing a connection and mutual understanding with someone, creating a foundation of trust and affinity.

Rapport Building

Performance Plan

A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.

Performance Plan

Horizontal Market

A horizontal market is one where a product or service is designed to meet a common need for a wide array of customers, regardless of their industry.

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Account-Based Sales

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Salesforce Administrator

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Salesforce Administrator

Brand Awareness

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Brand Awareness

Account Management

Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.

Account Management

No Forms

No Forms is a method for capturing lead data directly from your website visitors' profiles without requiring them to fill out any forms.

No Forms

Data Security

Data security protects digital information from unauthorized access, corruption, or theft throughout its entire lifecycle.

Data Security

Buying Process

The buying process is the journey a customer takes from first realizing a need to making a final purchase decision and evaluating it afterward.

Buying Process

Virtual Private Cloud

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Virtual Private Cloud

SAM

Serviceable Addressable Market (SAM) is the portion of the market your business can realistically serve with its current products and sales channels.

SAM

Fault Tolerance

Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.

Fault Tolerance

Sales Funnel

A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each stage.

Sales Funnel

Awareness Buying Stage

The awareness stage is the first step in the buyer's journey, where a potential customer realizes they have a problem or an opportunity to explore.

Awareness Buying Stage

Lead Nurturing

Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.

Lead Nurturing

Sales Development Representative (SDR)

A Sales Development Representative (SDR) is a sales specialist who finds and qualifies new leads, building a pipeline for the sales team.

Sales Development Representative (SDR)

Account-Based Advertising

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Account-Based Advertising

Branded Keywords

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Branded Keywords

Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

Channel Marketing

Process Builder

Process Builder is a Salesforce automation tool that lets you create 'if/then' business processes with a user-friendly visual interface.

Process Builder

Consultative Sales

Consultative selling is a sales approach where a salesperson acts as an advisor, focusing on understanding and solving a customer's specific needs.

Consultative Sales

Triggered Email

A triggered email is an automated message sent to a user in response to a specific action or event, like signing up or making a purchase.

Triggered Email

Behavioral Analytics

Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.

Behavioral Analytics

Segmentation Analysis

Segmentation analysis is the process of dividing a broad market into smaller, distinct groups of consumers with similar needs or characteristics.

Segmentation Analysis

Sales Territory

A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.

Sales Territory

Marketo

Marketo is a marketing automation platform used by B2B marketers to manage lead generation, nurturing, email marketing, and analytics.

Marketo

Account Executive

An Account Executive (AE) is a sales professional responsible for closing new business deals and managing existing client relationships to drive revenue.

Account Executive

Sales Funnel Metrics

Sales funnel metrics are key data points that track how effectively you're moving potential customers from awareness to a final purchase.

Sales Funnel Metrics

Bulk Application Programming Interface

Learn about bulk API, including how it works, the advantages of using it, common use cases, and tips for optimizing it.

Bulk Application Programming Interface

Data Pipelines

A data pipeline is a set of automated processes that move raw data from various sources to a destination for storage and analysis.

Data Pipelines

Buying Cycle

The buying cycle is the journey a customer takes from first realizing they have a need to making the final purchase decision.

Buying Cycle

Churn

Churn, also known as customer attrition, is the rate at which customers stop doing business with a company over a given period.

Churn

Performance Monitoring

Performance monitoring involves collecting and analyzing data to track a system's operational health and efficiency, ensuring it meets set standards.

Performance Monitoring

Sales Sequence

A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.

Sales Sequence

Touches

Touches are the individual interactions you have with a prospect throughout the sales process, from emails and calls to social media messages.

Touches

Price Optimization

Price optimization is the process of finding the ideal price for a product or service to maximize profitability or other business objectives.

Price Optimization

Dynamic Segment

Dynamic segments are self-updating lists that group contacts based on real-time data, ensuring your outreach is always timely and relevant.

Dynamic Segment

Weighted Pipeline

A weighted pipeline forecasts sales revenue by assigning a closing probability to each deal based on its stage in the sales funnel.

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Subscription Models

Subscription models are a business strategy where customers pay a recurring fee at regular intervals for access to a product or service.

Subscription Models

Ideal Customer Profile

An Ideal Customer Profile (ICP) is a detailed description of the perfect, hypothetical company that would get the most value from your product.

Ideal Customer Profile

Bounce Rate

Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.

Bounce Rate

Content Delivery Network

A Content Delivery Network (CDN) is a system of distributed servers that deliver web content to users based on their geographic location.

Content Delivery Network

Marketing Attribution Model

A marketing attribution model is a framework for assigning credit to the marketing touchpoints that lead a customer to convert.

Marketing Attribution Model

B2B Leads

Learn about B2B leads, including identifying quality B2B leads, generating B2B leads effectively, & B2B leads vs. B2C leads: understanding the differences.

B2B Leads

Drupal

Drupal is a free, open-source content management system (CMS) for building websites and applications. It's known for its robust flexibility.

Drupal