Sales Cycle Length

What is Sales Cycle Length?

Sales cycle length is the average time from first contact with a prospect to closing the deal. It measures how long your sales process takes and impacts forecasting, cash flow, and capacity planning.

Sales cycles vary dramatically by deal size, buyer type, and product complexity. A self-serve SaaS might close in hours. An enterprise deal might take 6-12 months.

Why Sales Cycle Length Matters

Sales cycle length determines when pipeline converts to revenue. If your cycle is 60 days, pipeline created today won't close until next quarter. This affects forecasting accuracy and cash planning.

Longer cycles require more working capital to fund sales teams before revenue arrives. They also increase risk of deals dying or competitive losses.

Reducing Sales Cycle Length

Qualify harder upfront to avoid slow deals. Identify and engage all decision-makers early. Create urgency with time-limited offers. Remove friction from legal and procurement processes. Provide ROI data that speeds internal approvals.

Deal timing analysis:

• Deal 1: First contact to close = 45 days
• Deal 2: First contact to close = 62 days
• Deal 3: First contact to close = 38 days
• Deal 4: First contact to close = 55 days

Average Sales Cycle = (45 + 62 + 38 + 55) ÷ 4 = 50 days

Use this for forecasting when pipeline will convert to revenue.