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 will naturally have a higher potential LVR than a local plumbing service. Analyse your competitors’ growth and consider your sector’s average sales cycle length.
- Stage of Growth: Start-ups and rapidly scaling businesses should target an LVR of 20% or more to fuel expansion. More established businesses might find 15% sustainable. Don’t chase unrealistic numbers – focus on consistent, predictable growth.
- Sales Capacity: Your sales team’s ability to handle increased lead flow is crucial. A high LVR is useless if your sales reps are overwhelmed and conversion rates drop. Ensure your sales and marketing teams are aligned and have the resources to manage the influx.
- Lead Quality is Paramount: Don’t inflate your LVR with low-quality leads. Focus on attracting the *right* prospects, even if it means a slightly lower volume. A smaller number of highly qualified leads will always outperform a larger number of tyre-kickers.
We anticipate that in 2026/2027, businesses that consistently achieve a 15-20% LVR, coupled with strong conversion rates, will be best positioned to outperform their competitors. It’s not just about generating more leads; it’s about generating the *right* leads and having the systems in place to nurture them effectively.
To determine your ideal LVR, start by tracking your current rate. Then, analyse your sales cycle, conversion rates at each stage, and sales team capacity. From there, set a realistic growth target and monitor your progress closely. If you’re unsure where to start, a comprehensive lead generation audit can provide valuable insights and a tailored action plan.