Determining a ‘healthy’ Lead Velocity Rate (LVR) isn’t about hitting a universal number. It’s about understanding what growth looks like *for your business* and consistently improving on that. However, we can give you some benchmarks to aim for, considering the evolving Australian market.
LVR measures the percentage growth of qualified leads month-over-month. It’s a crucial indicator of pipeline health because it shows whether your lead generation efforts are accelerating, decelerating, or stagnating. A consistently positive LVR signals a growing pipeline, which ultimately translates to more sales. But what’s ‘good’?
Here are a few insights to consider:
- Industry Matters: LVR varies significantly by industry. Highly competitive sectors like financial services or technology will naturally have different benchmarks than, say, a local trades business. We recommend researching industry averages as a starting point, but don’t treat them as gospel.
- Stage of Growth: Start-ups and rapidly scaling businesses should aim for higher LVRs – ideally 20% or more – to fuel expansion. More established SMEs might find a consistent 10% LVR perfectly healthy.
- Sales Cycle Length: Longer sales cycles require a higher LVR to maintain a consistent flow of opportunities. If it takes six months to close a deal, you need to generate significantly more leads each month than a business with a one-month sales cycle.
- Marketing Investment: Increased marketing spend should correlate with an increased LVR. If you’re investing more in lead generation but seeing no improvement, it’s a sign to analyse your campaigns and optimise for better results.
Looking ahead, as competition intensifies and customer acquisition costs potentially rise in 2026 and 2027, maintaining a positive LVR will become even more critical. Businesses that proactively monitor and optimise their LVR will be best positioned to thrive.
Ultimately, the best LVR is the one that supports your revenue goals. We suggest tracking your LVR monthly, identifying trends, and making data-driven adjustments to your lead generation strategy. If you’re unsure where to start, a comprehensive lead generation audit can provide valuable insights and a tailored action plan.
