Table of contents
Average Sales Cycle Length
TL;DR
Average Sales Cycle Length measures the typical number of days it takes to close a deal — from first contact to signed contract. It helps sales teams set realistic expectations, forecast bookings more accurately, and identify process inefficiencies. In B2B SaaS, understanding cycle length is especially critical when selling to different segments like SMB vs. enterprise.
What is Average Sales Cycle Length?
Average Sales Cycle Length refers to the average duration of time between when a qualified opportunity is created and when it is marked as closed-won.
Formula:
Average Sales Cycle Length = Total Days to Close All Deals ÷ Number of Closed-Won Deals
Example: If five deals took a combined 300 days to close, the average cycle length is 60 days.
Some teams also track:
- Initial contact to close (for outbound/SDR motions)
- Demo to close or Proposal to close (for stage-specific insights)
Why It Matters in B2B SaaS
- It improves forecasting accuracy. Knowing your typical sales cycle helps model when pipeline will convert.
- It enables better segmentation. SMBs close faster than enterprises — and they often require different sales processes.
- It informs pipeline coverage needs. Longer cycles require higher coverage to ensure consistent bookings.
- It highlights process inefficiencies. If your cycle is growing, something may be broken — qualification, pricing, or procurement.
- It supports rep performance analysis. Shorter isn’t always better, but abnormal lag may indicate a skills or prioritization issue.
How to Measure Average Sales Cycle Length
- Identify all closed-won opportunities in your CRM
- For each, calculate the number of days between opp creation and close date
- Add all cycle durations together
- Divide by the number of deals to get the average
- Segment results by:
- Sales rep
- Customer size or vertical
- Deal type (new business, expansion, renewal)
Best Practices
- Benchmark by segment. SMB, mid-market, and enterprise have vastly different cycles
- Review quarterly. Changes in cycle length often correlate with team structure, product changes, or GTM strategy shifts
- Pair with win rate and deal size. Longer cycles may still be worth it for high-ACV deals
- Watch for aging open opps. If cycle length is rising, old pipeline may be artificially inflating it
- Set SLA expectations across functions. Legal, finance, and security reviews often delay enterprise deals — track those delays separately
Final Thought
Average Sales Cycle Length isn’t about speed for speed’s sake. It’s about predictability. SaaS teams that understand their sales motion — and where it slows down — can improve deal velocity without sacrificing quality. Track it, segment it, and use it to drive better pipeline planning and rep enablement.
FAQs
What’s a good average sales cycle length?
It varies by segment. SMB: 15–30 days. Mid-market: 30–60 days. Enterprise: 90+ days.
Should I include lost deals in the calculation?
No. Focus only on closed-won deals for this metric. Use a separate analysis for lost deal cycle trends.
How does sales cycle impact forecast accuracy?
If you know deals in stage 3 take ~30 days to close, you can forecast bookings with much more precision.
Can this be shortened through tech or enablement?
Often, yes. Better demo flow, faster legal templates, clearer pricing — all can trim days off your cycle.
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