Lead Velocity Rate (LVR)

What is Lead Velocity Rate (LVR)?

Lead Velocity Rate (LVR) measures the growth rate of qualified leads month-over-month. It reflects the rate at which your sales pipeline is growing and is considered a strong leading indicator of future revenue, especially in SaaS and B2B businesses.

Rather than focusing on revenue already generated, LVR captures how fast you’re acquiring Sales Qualified Leads (SQLs) and building momentum for future sales.

How to calculate Lead Velocity Rate (LVR)?

LVR is calculated by comparing the number of qualified leads generated in the current month to the number generated in the previous month.

Steps to calculate LVR

  • Step 1 – Identify Sales Qualified Leads (SQLs)
  • Step 2 – Count SQLs for the Current Month
  • Step 3 – Count SQLs from the Previous Month
  • Step 4 – Apply the LVR Formula
  • Step 5 – Track LVR over time to identify upward/downward trends and understand the impact of marketing or sales initiatives

Formula to calculate LVR

LVR (%) = ((Leads this month – Leads last month) ÷ Leads last month) x 100%

Benchmark for LVR

Here are some general LVR benchmarks:

  • >15–20% LVR: Healthy growth, especially for scaling startups.
  • >30–50% LVR: Very strong; indicates aggressive pipeline building.
  • <10% LVR: May signal stagnation or declining pipeline health.

Related Metrics for LVR

  • Marketing Qualified Leads (MQLs)
  • Sales Qualified Leads (SQLs)
  • Customer Acquisition Cost (CAC)
  • Monthly Recurring Revenue (MRR)

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FAQ's

LVR is a crucial leading indicator for SaaS companies because it measures the growth rate of sales-ready leads before revenue is realized. LVR gives real-time insight into future sales potential. A consistently high LVR suggests a strong, scalable pipeline and helps companies project growth, optimize sales capacity, and plan investments more confidently.

While lead volume includes all incoming leads and MQL growth focuses on marketing-qualified leads. LVR specifically measures the month-over-month growth of Sales Qualified Leads (SQLs), i.e., leads that are deemed ready for direct sales engagement. This makes LVR a more precise and actionable metric for forecasting revenue and aligning marketing and sales performance.

Yes, LVR is often used as a predictive metric for future revenue. Since it reflects the growth rate of high-intent leads (SQLs), companies can apply historical conversion rates and average deal sizes to their LVR figures to estimate potential revenue in upcoming months. However, its predictive accuracy depends on consistent lead qualification standards and stable sales processes.