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.
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