How to Calculate Lead Velocity Rate

How to Calculate Lead Velocity Rate
October 6, 2019
Lead velocity rate measures the period over period growth in the number of leads you are generating.

This blog post was originally published by Rekener, now a Brainshark company.

Lead velocity rate measures the period over period growth in the number of leads you are generating.

It shows you whether you are expanding the top of your funnel or not.  And, if your leads convert to opportunities and deals consistently, Lead Velocity Rate can help you predict your future bookings.

As an example, if you generated 120 leads this month, and generated 100 leads last month, then your Lead Velocity Rate would be (120 - 100) / 100 = 20%

How to calculate Lead Velocity Rate

In order to measure Lead Velocity Rate with Salesforce data, count the total number of qualified leads from the period you're measuring.  Then, count the number of qualified leads from the previous period of the same length.  Then, calculate the Lead Velocity Rate as:  (Leads This Period - Leads Previous Period) / Leads Previous Period and express this as a percentage.

To measure Lead Velocity Rate with HubSpot CRM data, count the total number of qualified leads from the period you're measuring.  Then, count the number of qualified leads from the previous period of the same length.  Then, calculate the Lead Velocity Rate as:  (Leads This Period - Leads Previous Period) / Leads Previous Period and express this as a percentage.

Many companies use spreadsheets to calculate this metric.  Sales scorecards can automate lead velocity rate calculations, so that you can see how the top of your funnel is growing over time.  You can view this data dynamically, by week, month, quarter, year, or any other interval.

Want to learn more? Looking for more sales metrics know-how? Our comprehensive Sales Metrics Glossary will show you how to calculate 30 critical KPIs using CRM data.