What is
Lead Velocity Rate
?
Lead Velocity Rate (LVR) is the month-over-month growth percentage in qualified leads. While revenue and bookings are 'Lagging Indicators' (telling you what happened in the past), LVR is the ultimate 'Leading Indicator' for future revenue growth. If your LVR is up 20% this month, you can confidently predict a revenue spike in the coming months as those leads move through the funnel. It is calculated by taking the growth in qualified leads and dividing it by the previous month's lead count. LVR is the primary KPI for the Marketing and Demand Gen teams because it is directly under their control and is less affected by the fluctuations of the sales cycle. As long as lead quality remains consistent, LVR is the most reliable way to forecast the future trajectory of a business. Founders who ignore LVR are often blindsided by 'Revenue Plateaus' that were predictable months in advance based on a slowing lead pipe.
Frequently asked questions.
Why is LVR a 'Leading' indicator?
It predicts future revenue growth before the deals even enter the formal sales pipeline.
Is a higher LVR always better?
Only if the quality of the leads remains consistent; high volume can be a distraction.
LVR vs Revenue Growth?
Revenue is a 'Lagging' indicator (what happened); LVR is 'Leading' (what will happen).
What is a healthy LVR?
Your LVR should ideally be higher than your target revenue growth rate.
Primary owners of LVR?
The Marketing and Demand Generation teams are the primary owners of this metric.
