What is Sales Cycle Length and How to Measure it

User AvatarTyson Parsons

Everything you need to know about Sales Cycle Length

Have you heard of sales cycle length? If you aren’t familiar with this part of the sales process and how it will help your team, we’re going to tell you what a sales cycle is, why it’s important, and how to calculate it quickly to get analytical insights into your business.

What is a Sales Cycle?

A sales cycle is the repeatable and tactical process salespeople follow to turn a lead into a customer. With a sales cycle in place, you always know your next move and where each lead is within the cycle. It can also help you repeat your success or determine how to improve.

Why are Sales Cycles Important?

Sales cycles are a vital part of any sales process. Using the simple calculation mentioned below you will be able to:

  • Identify areas of improvement.
  • Plan for future goals.
  • Gather data and metrics more efficiently.

Among other benefits, calculating a sales cycle is a must for your team and we’re about to show you how to do it.

How to Measure Sales Cycle Length

To calculate your sales length cycle, you add up the total number of days it took to close every sale, then, divide that sum by the total number of deals. So, for example: 40+30+60+70 = 200 days total. You would then divide the total number of days (200) by the total number of deals (4) to get the average length in days. 200 / 4 = 50 days With this metric, you can now estimate that similar deals in the future will take around 50 days to close.

Looking at your sales pipeline, you can now evaluate your high probability customers and anticipate when the revenue from those pending sales will hit. This forecasting guides you in your business strategies.

Do you Calculate Your Sales Cycles?

What do you think of sales cycle length and how to calculate it? If you aren’t making an effort to gather these metrics now, you’re ignoring ways to better your sales process. Chat with us today to see how your team and sales process can be improved. 

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