The lead velocity rate measures how fast your pool of qualified leads grows over time. It’s a working measure that informs you about the rate at which your business generates new leads – allowing you to forecast future revenue growth more accurately. Instead of focusing on conversion rates or snapshots of lead quantity alone, lead velocity gives you a look ahead.
The other option is to consider conversion history only, which does not necessarily represent the cadence of your sales pipeline.
The effect of lead velocity on your pipeline
- 70% of marketing organizations report that tracking lead velocity has enabled them to manage resources more efficiently.
- Companies that monitor lead velocity have an average 25% increase in conversion rates.
- Organizations have indicated that efficient handling of lead velocity can reduce customer acquisition costs by up to 20%.
A word from the wise
Monitoring your lead velocity rate is like checking the pulse of your business. It tells you not just how many leads you’re getting, but how fast they’re coming in – a true indicator of what’s moving down the pipeline.
Scott shifts our attention from boring numbers to the actual momentum of leads. His no-nonsense take shows that lead velocity isn’t just some fancy metric – it’s how you predict success and figure out where to put your marketing dollars. Simple but brilliant.
Case in point
TechWave, a fast-growing B2B software company, implemented a new lead tracking system to monitor its lead velocity rate. They improved their lead nurturing processes and invested in more sophisticated data analytics, and they realized a 35% increase in new qualified leads over six months. It allowed their sales team to adjust their follow-up strategies, resulting in a 30% improvement in overall conversion rates.
Another example is FinEdge, a financial services organization that reengineered its lead management strategy, focusing on lead velocity. Integrating advanced analytics within its CRM and altering marketing campaign strategies according to real-time lead development data, FinEdge increased lead conversion by 28% and reduced acquisition costs by 22%. This forward-looking strategy enabled it to consistently achieve quarterly revenue expectations and drive further growth.
Overcoming roadblocks
Challenge:
One of the biggest challenges is that customer behavior is continuously changing. A lead velocity model that was successful last quarter could rapidly become obsolete if market trends change.
Resolution:
To prevent this, invest in real-time analytics tools and have routine review sessions with your marketing and sales teams.
Use this roadmap to avoid bumps along the way
- Regularly monitor and adjust lead scoring criteria.
- Monitor real-time lead growth and conversion rates.
- Use agile methodologies to stay in sync with changing market trends.
- Conduct continuous optimization from performance feedback.
