Determining a ‘healthy’ Lead Velocity Rate (LVR) – the month-on-month growth of qualified leads – isn’t about hitting a universal number. It’s about understanding what’s right for *your* business and where the market is heading. However, we can give you a solid benchmark for planning your growth in the coming year and beyond.

Historically, a good LVR was considered around 10% month-on-month. That meant a 10% increase in the number of sales-qualified leads each month. However, the Australian market is becoming more competitive, and buyer behaviour is evolving rapidly. We’re seeing that businesses needing to aim higher to maintain market share.

Here are a few key insights to consider when analysing your LVR:

• Industry Matters: LVR benchmarks vary significantly. A professional services firm will naturally have a lower LVR than a fast-moving consumer good. Analyse your competitors’ growth and consider your sector’s average sales cycle length.
• Sales Capacity: A high LVR is useless if your sales team can’t handle the influx of leads. Ensure your sales processes and team capacity align with your lead generation efforts. Don’t chase volume at the expense of conversion rates.
• Lead Quality is Paramount: Focus on generating *qualified* leads, not just any lead. A higher LVR with poor lead quality will drain your sales team’s time and resources. Invest in lead scoring and nurturing to improve quality.
• Customer Acquisition Cost (CAC): Your LVR needs to be sustainable from a cost perspective. A rapidly increasing LVR fuelled by expensive advertising might look good on paper, but it could be eroding your profitability.

Looking ahead, we anticipate that a healthy LVR for most Australian SMEs will need to be in the 15-20% range to achieve meaningful growth. This reflects the increasing cost of acquisition and the need to aggressively pursue market share. However, remember this is a guideline. Continuously monitor your LVR, analyse its impact on revenue, and adjust your strategies accordingly.

The best next step is to calculate your current LVR and compare it to your historical data. Then, benchmark it against your industry peers and assess whether your sales and marketing alignment can support a higher growth target. A focused review of these areas will set you up for success.