# Lead Velocity Rate

> Discover the meaning of Lead Velocity Rate and learn how it can drive your sales growth by predicting future performance.

*Canonical: https://derrick-app.com/glossary/lead-velocity-rate*

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Lead Velocity Rate (LVR) is a metric that measures the month-over-month growth in qualified leads within a sales pipeline. This metric is crucial in digital marketing and sales automation as it provides insights into the effectiveness of lead generation strategies and the health of a company’s sales funnel. By tracking the Lead Velocity Rate, businesses can better predict future revenue and identify trends in lead acquisition, allowing them to make informed decisions about resource allocation and strategy adjustments. LVR is calculated by subtracting the number of qualified leads in the previous month from the number of qualified leads in the current month, dividing the result by the number of qualified leads in the previous month, and then multiplying by 100 to get a percentage. Maintaining a positive LVR indicates that a company is successfully generating leads at an increasing rate, which is essential for sustained growth and competitive advantage in the market.

## Example

Imagine a SaaS company that launched a new online marketing campaign in January. In that month, the company had 100 qualified leads. By February, thanks to the campaign's success and some strategic improvements in their sales efforts, the number of qualified leads increased to 120. To calculate the Lead Velocity Rate, they subtract the January leads (100) from the February leads (120), resulting in an increase of 20 leads. They then divide 20 by January's 100 leads to get 0.2, and multiply by 100 to convert it to a percentage, resulting in a 20% Lead Velocity Rate. This positive LVR indicates that their recent marketing strategies are effective in driving growth, enabling them to forecast increased sales opportunities and plan for additional resource investments to maintain this momentum.

## Related definitions

- [Letter Of Intent](https://derrick-app.com/glossary/letter-of-intent)
- [Lightning Components](https://derrick-app.com/glossary/lightning-components)
- [Linkedin Sales Navigator](https://derrick-app.com/glossary/linkedin-sales-navigator)
- [Load Balancing](https://derrick-app.com/glossary/load-balancing)
- [Load Testing](https://derrick-app.com/glossary/load-testing)
- [Logo Retention](https://derrick-app.com/glossary/logo-retention)
- [Lookalike Audiences](https://derrick-app.com/glossary/lookalike-audiences)