Formula
Sales Cycle Length = Total Time Taken to Close Deals ÷ Number of Deals Closed
Calculation Example
If 10 deals take a total of 300 days to close, Sales Cycle Length = 300 ÷ 10 = 30 days
Data Source
CRM software, sales reports
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
Shorter cycles indicate better sales efficiency.
Minimum Acceptable Value
A long sales cycle may indicate inefficiencies or complex decision-making.
Benchmark
B2B ~30-90 days, Enterprise sales ~6-12 months
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare teams)
How It Appears in Reports
Displayed in sales reports to assess deal velocity.
Why Is This KPI Important?
Indicates sales efficiency and effectiveness of customer acquisition.
Typical Problems and Limitations
Varies by industry and product complexity.
Actions for Poor Results
Improve lead nurturing, streamline sales process, enhance automation.
Related KPIs
Win Rate, Lead-to-Customer Ratio, Conversion Rate
Real-Life Examples
A software company reduced its sales cycle from 45 to 30 days by automating demos.
Most Common Mistakes
Focusing only on reducing cycle length without considering deal quality.
