Determining a ‘healthy’ Lead Velocity Rate (LVR) isn’t about hitting a universal number. It’s about understanding what growth looks like *for your specific business* and consistently achieving it. LVR measures the month-on-month growth of qualified leads – those prospects who’ve indicated genuine interest and fit your ideal customer profile. We’re seeing a shift in what constitutes strong LVR as we move into 2026, driven by increased market maturity and more sophisticated buyer behaviour.
Historically, a 10% month-on-month LVR was considered good. However, in the current climate, and looking ahead, we advise Australian SMEs to aim higher. Here’s what we’re observing with our clients:
- Industry Matters: LVR benchmarks vary significantly. A software-as-a-service (SaaS) business targeting rapid expansion will need a higher LVR (20-30%+) than a local plumbing service focused on steady growth (5-10%).
- Sales Cycle Length: Longer sales cycles require a higher LVR to maintain pipeline momentum. If it takes six months to close a deal, you need a consistently strong influx of qualified leads to avoid pipeline gaps.
- Marketing Investment: Increased marketing spend should correlate with a higher LVR. If you’re investing more in lead generation, you should see a proportional increase in qualified leads.
- Lead Quality is Key: Don’t chase volume at the expense of quality. A 15% LVR with highly qualified leads is far more valuable than a 30% LVR filled with unqualified prospects. Focus on attracting the *right* leads.
We’re finding that a consistent 15-20% LVR is a realistic and achievable goal for many Australian SMEs in 2026, provided it’s underpinned by a strong focus on lead quality and aligned with overall revenue targets. It’s also important to remember that LVR is a diagnostic tool, not a vanity metric. A declining LVR signals a need to analyse your lead generation efforts – are your campaigns still effective? Is your targeting accurate? Are you nurturing leads effectively?
To determine your ideal LVR, start by calculating your current rate. Then, work backwards from your revenue goals to determine how many qualified leads you need to generate each month. This will give you a clear target to aim for and a framework for measuring your success. If you’re unsure where to start, a comprehensive lead generation audit can provide valuable insights and a tailored action plan.
