Definition
The average number of days between a lead entering the pipeline and the deal reaching a final decision.
Formula
Sum of (Close date - Pipeline entry date) / Number of closed deals
How to measure
For every closed deal, calculate the days elapsed from pipeline entry to close, then average across all closed deals in the period.
Why track it
Shortening the sales cycle increases how many deals a fixed sales team can close in a given period, directly lifting growth velocity.
Example
A team's average sales cycle drops from 52 to 38 days after simplifying its proposal approval process.
FAQ
- What is Average Sales Cycle Length?
- The average number of days between a lead entering the pipeline and the deal reaching a final decision.
- How do you calculate Average Sales Cycle Length?
- Sum of (Close date - Pipeline entry date) / Number of closed deals
- Why track Average Sales Cycle Length?
- Shortening the sales cycle increases how many deals a fixed sales team can close in a given period, directly lifting growth velocity.