How to Calculate Sales Cycle Length
Sales cycle length measures how long it takes to convert a prospect into a customer. This metric is critical for forecasting, capacity planning, and identifying process bottlenecks.
The Sales Cycle Formula
Average Sales Cycle = Total Days (All Deals) ÷ Number of Deals
Track from first contact to signed contract
Why Sales Cycle Matters
- Forecasting Accuracy: Predict when deals will close
- Capacity Planning: Determine how many deals a rep can handle
- Revenue Projection: Calculate monthly/quarterly revenue potential
- Process Optimization: Identify stages that slow deals down
- Competitive Advantage: Faster cycles = more deals closed
How to Shorten Your Sales Cycle
- Qualify Ruthlessly: Only pursue ready-to-buy prospects (BANT, MEDDIC)
- Streamline Process: Remove unnecessary steps and meetings
- Speed Up Proposals: Use templates and automation
- Address Objections Early: Don't wait until the end
- Create Urgency: Tie to business events, deadlines, or limited offers
- Multi-Threading: Engage multiple stakeholders from day one
- Enable Buyers: Provide resources that help them sell internally
Sales Cycle Benchmarks by Market
- B2B SaaS SMB: 30-60 days (simple, single decision maker)
- B2B SaaS Mid-Market: 60-120 days (multiple stakeholders)
- B2B SaaS Enterprise: 120-365+ days (complex, procurement)
- Transactional Sales: 1-30 days (low complexity, clear ROI)