Sales cycle
Quick answer
The average time from first qualified interaction to a signed order - the metric that determines how fast commercial effort turns into cash.
Key takeaways
- Between the quote request and sending the quote
- In internal discount approvals
- Waiting on a decision where the real decision maker was never identified
What it is
The sales cycle measures the days between qualifying an opportunity and closing it as won. Use the median rather than the mean, because a single year-long large contract distorts the average.
Why it matters for cash-flow
A 90-day cycle means today's commercial effort produces cash in three months. Cutting it by 20% has the same cash-flow effect as an equivalent increase in opportunity count, at no extra cost.
Where time is usually lost
- Between the quote request and sending the quote
- In internal discount approvals
- Waiting on a decision where the real decision maker was never identified
Real-world example
A distributor cut the median cycle from 52 to 31 days by moving quoting into the field, with stock and contract price shown directly on mobile.
Last updated:
Frequently asked
How do I shorten the sales cycle?+
Measure time spent in each stage and attack the longest one. It is usually quoting or internal approval, not the customer's decision.
Mean or median?+
Median for operational reporting. The mean is only useful when deal values are fairly uniform.
Where CRMconnect fits
Related terms
Sales pipeline
A structured view of open opportunities grouped by stage, used to estimate future revenue and prioritise commercial effort.
SalesWin rate
The share of closed opportunities that were won - the main indicator of sales process and qualification quality.
SalesSales forecast
The estimate of revenue closing in a period, computed from the pipeline by weighting on stage and real historical conversion.