Vareto Finance Glossary

Lead Velocity Rate (LVR)

Description

Lead Velocity Rate (LVR) is a metric to track real-time growth from qualified leads generated every month. High-growth SaaS companies use LVR to gauge their efficiency and future growth potential.

Example

Lead Velocity Rate (LVR) = (qualified leads of the current month – qualified leads of the previous month) / qualified leads of the previous month. For example, if a company currently has 350 qualified leads in the current month and 316 qualified leads from the previous month, the LVR would be 10.7%.

Why it matters

Since LVR is a metric to predict future revenues, it helps companies in optimizing their sales and marketing strategies. It also allows companies to know real-time sales performance and make any quick strategic adjustments that may be required.