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Lead Velocity Rate (LVR)
The month-over-month percentage growth in qualified leads, serving as a leading indicator of future revenue.
Formula
LVR = (Qualified Leads This Month - Qualified Leads Last Month) ÷ Qualified Leads Last Month × 100
Focus on qualified leads, not raw leads, for accuracy.
Definition
What is Lead Velocity Rate?
Lead Velocity Rate (LVR) measures the month-over-month growth in qualified leads. It's a leading indicator of future revenue growth because today's leads become tomorrow's customers.
LVR is more predictive than lagging indicators like revenue or bookings because it shows what's entering the top of your funnel before it converts.
Why LVR Matters
Revenue is a lagging indicator. By the time you see revenue decline, the problem started months ago when lead generation slowed. LVR gives you early warning to fix demand generation before it hits revenue.
Consistent LVR growth compounds. 10% monthly LVR growth means your lead volume more than triples annually. This predictability helps with planning and forecasting.
Using LVR Effectively
Track qualified leads specifically, not just raw leads. Segment by source to identify which channels are accelerating or decelerating. Set LVR targets that align with revenue growth goals.
Example
Month-over-month qualified leads:
- January qualified leads: 200
- February qualified leads: 230
LVR = (230 - 200) ÷ 200 × 100 = 15%
Your qualified lead pipeline is growing 15% monthly. With consistent conversion rates, this predicts 15% revenue growth 2-3 months out.
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