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.
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.
This is how you calculate your Lead Velocity Rate.
While both metrics are crucial for sales teams, they measure different aspects of performance and pipeline health.
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.
LVR directly impacts a company's growth trajectory by providing a clear, forward-looking view of the sales pipeline.
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.
Quality Assurance (QA) is the systematic process of ensuring a product or service meets specified quality standards from development to delivery.
The Jobs to Be Done (JTBD) framework focuses on understanding customer needs by identifying the specific 'job' they are trying to accomplish.
Learn about business continuity, including understanding key components, steps to ensure continuity, common challenges, & best practices.
The Dark Funnel describes customer buying activities that are untrackable by companies, such as private chats and word-of-mouth referrals.
User Experience (UX) refers to a person's overall feelings and perceptions while interacting with a product, system, or service.
CRM data is the information businesses use to manage customer relationships. It covers contact details, purchase history, and communication logs.
CRM enrichment is the process of adding third-party data to your existing customer profiles to make them more complete and accurate.
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.
Pipeline management is the process of tracking and managing potential customers as they move through the different stages of your sales process.
Sales territory planning is the process of dividing customers into geographic areas to be assigned to specific sales reps or teams.
Learn about buyer behavior, including understanding the buyer's journey, influencing factors in buyer behavior, & buyer behavior and marketing strategy.
Learn about B2B data, including sources and types of B2B data, leveraging B2B data for sales success, & ensuring the accuracy of B2B 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.
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.
Opportunity management is the process of tracking potential sales from first contact to a closed deal, helping teams prioritize and win more.
Learn about business to customer, including maximizing B2C sales strategies, B2C vs. B2B: unveiling differences, & core principles of B2C success.
Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.
A Subject Matter Expert (SME) is an individual with profound knowledge and authority in a particular area, topic, or industry.
Warm outreach is contacting prospects with whom you have a pre-existing connection, like a mutual contact, making your message more personal and effective.
Video prospecting is the sales technique of sending personalized videos to potential customers to grab their attention and secure more meetings.
Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.
Revenue intelligence is the process of collecting and analyzing customer data to provide insights that help sales teams make smarter decisions.
Real-time data processing is the method of analyzing data the instant it's generated, enabling immediate actions and decision-making.
Learn about B2B intent data providers, including evaluating intent data quality, leveraging intent data for growth, & B2B intent data: key providers comparison.
CPM, or Cost Per Mille, is a key advertising metric. It's the cost an advertiser pays for one thousand views or impressions of a single ad.
Smarketing is the process of aligning your sales and marketing teams. This integration focuses on shared goals to improve lead quality and drive revenue.
A buying signal is any action from a prospect that indicates they are interested in making a purchase, helping sales teams prioritize leads.
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.
Warm calling is contacting prospects with a prior connection, like a referral or social media interaction, to make your outreach more relevant.
Lead scoring models rank prospects by assigning points for their behaviors and demographics, helping sales teams prioritize their outreach.
A persona is a semi-fictional profile of your ideal customer, based on market research and real data about your existing customers.
Data privacy is an individual's right to control their personal information, including how it's collected, processed, stored, and shared.
A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.
The Challenger Sales model is a methodology where reps teach prospects, tailor their pitch, and take control of the sales conversation.
A sales process is a structured set of steps that a sales team follows to move a prospect from an initial lead to a closed customer.
Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.
Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.
Lead enrichment software adds crucial data to your leads, like contact info and firmographics, to help you better understand and engage them.
Account match rate is the percentage of target accounts successfully identified and matched against a specific database or data provider.
A field sales representative, or outside sales rep, travels to meet prospects in person, selling products or services directly within their territory.
Persona-based marketing uses fictional customer profiles, or personas, to create targeted messaging for specific audience segments.
Video selling uses personalized video messages to engage prospects, build rapport, and guide them through the sales funnel to close more deals.
Customer data analysis is the process of examining customer information to uncover insights that drive business decisions and improve experiences.
Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.
Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.
Escalations are the process of moving a customer issue or sales opportunity to a more senior or specialized team member for resolution.
Marketing metrics are quantifiable values that marketing teams use to measure and track the performance of their campaigns and efforts.
Kanban is a visual project management method that uses a board to visualize workflow, limit work-in-progress, and maximize team efficiency.
Learn about bad leads, including identifying bad leads, warning signs of bad leads, impact of bad leads on sales, & strategies to minimize bad leads.
A Marketing Qualified Account (MQA) is a target company that has shown significant engagement, indicating it's ready for the sales team to pursue.
A hybrid sales model blends traditional and digital sales methods to engage customers across multiple channels and buying preferences.
Learn about B2B2C, including benefits of B2B2C model, key strategies for B2B2C success, & B2B2C vs. B2C vs. B2B: understanding the differences.
Sales training is the process of honing a salesperson's skills and knowledge to enhance their effectiveness and drive sales success.
Sales Operations, or Sales Ops, streamlines sales processes, manages tools, and analyzes data to help sales teams sell more effectively.
Rapport building is the process of establishing a connection and mutual understanding with someone, creating a foundation of trust and affinity.
A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.
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.
Account-Based Sales (ABS) is a focused B2B strategy where sales and marketing teams treat high-value accounts as individual markets of one.
A Salesforce Administrator is a certified professional who manages and customizes the Salesforce platform to meet a company's specific business needs.
Learn about brand awareness, including understanding its importance, building an effective strategy, key metrics to track, & examples in the real world.
Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.
No Forms is a method for capturing lead data directly from your website visitors' profiles without requiring them to fill out any forms.
Data security protects digital information from unauthorized access, corruption, or theft throughout its entire lifecycle.
The buying process is the journey a customer takes from first realizing a need to making a final purchase decision and evaluating it afterward.
A Virtual Private Cloud (VPC) is a secure, isolated section of a public cloud. It lets you provision your own logically isolated resources.
Serviceable Addressable Market (SAM) is the portion of the market your business can realistically serve with its current products and sales channels.
Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.
A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each 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.
Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.
A Sales Development Representative (SDR) is a sales specialist who finds and qualifies new leads, building a pipeline for the sales team.
Account-based advertising is a hyper-focused B2B strategy that targets key accounts with personalized ads across multiple channels.
Learn about branded keywords, including identifying your branded keywords, & strategies for optimizing branded keywords.
Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.
Process Builder is a Salesforce automation tool that lets you create 'if/then' business processes with a user-friendly visual interface.
Consultative selling is a sales approach where a salesperson acts as an advisor, focusing on understanding and solving a customer's specific needs.
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.
Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.
Segmentation analysis is the process of dividing a broad market into smaller, distinct groups of consumers with similar needs or characteristics.
A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.
Marketo is a marketing automation platform used by B2B marketers to manage lead generation, nurturing, email marketing, and analytics.
An Account Executive (AE) is a sales professional responsible for closing new business deals and managing existing client relationships to drive revenue.
Sales funnel metrics are key data points that track how effectively you're moving potential customers from awareness to a final purchase.
Learn about bulk API, including how it works, the advantages of using it, common use cases, and tips for optimizing it.
A data pipeline is a set of automated processes that move raw data from various sources to a destination for storage and analysis.
The buying cycle is the journey a customer takes from first realizing they have a need to making the final purchase decision.
Churn, also known as customer attrition, is the rate at which customers stop doing business with a company over a given period.
Performance monitoring involves collecting and analyzing data to track a system's operational health and efficiency, ensuring it meets set standards.
A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.
Touches are the individual interactions you have with a prospect throughout the sales process, from emails and calls to social media messages.
Price optimization is the process of finding the ideal price for a product or service to maximize profitability or other business objectives.
Dynamic segments are self-updating lists that group contacts based on real-time data, ensuring your outreach is always timely and relevant.
A weighted pipeline forecasts sales revenue by assigning a closing probability to each deal based on its stage in the sales funnel.
Subscription models are a business strategy where customers pay a recurring fee at regular intervals for access to a product or service.
An Ideal Customer Profile (ICP) is a detailed description of the perfect, hypothetical company that would get the most value from your product.
Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.
A Content Delivery Network (CDN) is a system of distributed servers that deliver web content to users based on their geographic location.
A marketing attribution model is a framework for assigning credit to the marketing touchpoints that lead a customer to convert.
Learn about B2B leads, including identifying quality B2B leads, generating B2B leads effectively, & B2B leads vs. B2C leads: understanding the differences.
Drupal is a free, open-source content management system (CMS) for building websites and applications. It's known for its robust flexibility.