Equal leads is not equal work
Round-robin routing distributes leads by count. Each rep gets the same number. On paper, it's perfectly fair.
In reality, it's not.
An enterprise lead that requires 12 touchpoints over six weeks is not the same workload as an SMB lead that closes (or doesn't) in two calls. A lead from an existing customer that needs account context is not the same effort as a clean inbound demo request. A lead with a bad phone number that requires three attempts to reach is not the same as a lead who picks up on the first call.
Equal lead count does not mean equal workload. Capacity-based routing solves this by distributing leads based on what reps can actually handle, not just whose turn it is.
What capacity-based routing does
Capacity-based routing considers each rep's current workload before assigning a new lead. Instead of blindly following a rotation, it asks: does this rep have bandwidth to work another lead effectively?
The system tracks capacity using one or more signals:
Open lead count
The simplest capacity metric: how many active leads does each rep currently have? Set a maximum threshold (say, 40 active leads) and stop routing new leads to reps who've hit their cap.
Open opportunity value
For teams where deal size varies significantly, capacity is better measured by the total pipeline value a rep is managing. A rep working three $500K enterprise deals has a very different workload than a rep with three $5K SMB deals, even though the lead count is identical.
Activity-based capacity
Some teams measure capacity by rep activity: emails sent, calls made, meetings booked. If a rep's activity metrics are already at their target levels, they're at capacity regardless of lead count.
Weighted lead scoring
Different lead types require different effort levels. An enterprise lead might count as "3 units" of capacity while an SMB lead counts as "1 unit." The routing system tracks each rep's total units rather than raw lead count.
Time-based capacity
Capacity can also factor in upcoming schedule constraints: upcoming PTO, training days, or reduced schedules. A rep who's out on Friday should get fewer leads on Thursday than a rep who's working all week.
Why capacity-based routing matters
It prevents lead neglect
When a rep is overloaded, incoming leads don't get the attention they deserve. Response times lengthen. Follow-ups get missed. Leads go cold. The speed to lead data is clear: slow response kills conversion. Capacity routing prevents overload before it causes neglect.
It protects rep performance
Overloaded reps don't just work leads slower. They work them worse. Rushed discovery calls. Generic follow-ups. Missed buying signals. The quality of engagement drops across all of a rep's leads when they have too many to manage. Capacity limits protect the quality of every interaction.
It improves forecast accuracy
When reps are overloaded, deals slip. Timelines extend. Commit dates get missed. Capacity-based routing creates more predictable workloads, which creates more predictable pipeline velocity, which creates more accurate forecasts.
It reduces burnout
This is the factor that doesn't show up in dashboards but drives attrition. Consistently overloaded reps burn out and leave. Replacing them costs 6-12 months of ramp time and significant recruiting spend. Capacity routing is, indirectly, a retention tool.
Implementing capacity-based routing
Step 1: Define your capacity metric
Choose the metric that best reflects actual workload for your team:
- Small teams, similar deal sizes → open lead count is sufficient
- Variable deal sizes → weighted by segment or deal value
- High-activity sales motions → activity-based capacity
- Enterprise/consultative sales → opportunity count or pipeline value
Start with one metric. You can layer additional signals later if needed.
Step 2: Set capacity thresholds
Determine the maximum workload each rep can handle effectively. This requires data and honest assessment:
- Look at your top performers. How many active leads do they manage when they're converting well?
- Look at your conversion rates by rep workload. Is there a point where adding more leads starts decreasing conversion per lead?
- Talk to your reps. Where do they feel the strain?
Set the threshold conservatively. It's better to leave some capacity unused than to overload reps and degrade conversion across the board.
Step 3: Build overflow rules
When all reps in a routing group are at capacity, what happens? Define clear overflow behavior:
- Queue and hold: lead enters a waiting queue and is assigned when a rep has capacity. Use this when lead quality is high and you'd rather wait for the right rep.
- Expand the pool: route to reps in adjacent teams or territories who have capacity. Use this when speed matters more than perfect matching.
- Alert management: notify sales leadership that the team is at capacity. Use this as a signal that you need to hire or rebalance.
- Reduce threshold temporarily: accept slightly higher workloads during demand spikes rather than letting leads go unworked.
Step 4: Make capacity visible
Reps and managers should be able to see current capacity utilization:
- How close is each rep to their threshold?
- Which reps have bandwidth for more leads?
- Is the team overall approaching capacity?
Visibility drives behavior. Reps who can see they're at capacity will prioritize closing or disqualifying existing leads. Managers who can see team capacity can make proactive hiring decisions.
Step 5: Review and adjust regularly
Capacity thresholds aren't permanent. Review them as your team and business evolve:
- Monthly: check if thresholds still reflect actual workload capacity
- Quarterly: adjust for team size changes, product complexity changes, or market shifts
- On role changes: ramping reps should have lower thresholds than experienced reps
Capacity-based routing with other methods
Capacity-based routing is rarely the primary routing method. It's typically a constraint layer applied on top of other routing logic:
- Territory routing determines the eligible reps (those who cover the lead's geography/segment)
- Skills-based routing narrows to reps with relevant expertise
- Capacity-based routing selects the rep with the most available bandwidth from the qualified pool
- If multiple reps have equal capacity, round-robin breaks the tie
In this model, capacity acts as a load-balancing layer that prevents any single rep from being overwhelmed, even when other routing rules would concentrate leads on a few reps.
The named account exception
For named account routing, capacity often takes a back seat. If the account owner is at capacity but their named account submits a lead, the lead still goes to the owner. You wouldn't route a strategic account's lead to a different rep just because the owner is busy. That undermines the account relationship.
The solution: named accounts bypass capacity limits, but the owner's capacity threshold is adjusted to account for their named account workload. Or, set a hard cap that even named accounts respect, with leads going to a backup or manager when the limit is reached.
Measuring capacity routing effectiveness
Track these metrics to evaluate whether capacity-based routing is working:
- Average rep workload: leads, pipeline value, or activity units per rep over time
- Workload variance: how even is the distribution? Low variance means capacity routing is balancing well
- Conversion rate by workload level: do reps with lighter loads convert at higher rates? This validates your threshold settings
- Overflow frequency: how often do all reps hit capacity? Frequent overflow signals a hiring need
- Lead response time by capacity level: are reps at 90% capacity responding slower than reps at 50%? If so, your threshold may be too high
The lead count trap
The most common mistake with capacity routing is measuring only lead count. Twenty leads sounds manageable until you realize ten of them are enterprise deals requiring weekly touchpoints, five are stuck in procurement review (needing follow-up but no active work), and five are truly quick qualification calls.
If your leads have meaningfully different workload profiles, invest in weighted capacity scoring. Assign effort multipliers by segment, deal stage, or lead type. The routing system should track weighted capacity, not raw count.
This is extra work to set up, but it's the difference between a capacity system that actually balances workload and one that just balances numbers.
Start measuring before you automate
You don't need a sophisticated routing tool to start benefiting from capacity thinking. Start by measuring:
- How many active leads does each rep have right now?
- What's the distribution? Is it balanced or lopsided?
- Is there a correlation between rep workload and conversion rate?
If the data shows significant imbalance or a clear capacity-conversion relationship, that's your business case for implementing capacity-based routing. For help building that case, see our guide on building the business case for lead routing.
At RevenueTools, we're building capacity awareness into routing as a core feature, not a premium add-on. Because routing that overloads your best reps isn't helping anyone. See what we're launching March 10th.