What is sales cycle length and how to improve it

In sales, timing can make or break a deal. The time it takes to convert a prospect into a customer—commonly referred to as the sales cycle length—has a direct impact on your team’s efficiency, forecasting accuracy, and bottom line.

Understanding your sales cycle length and taking steps to optimize it can help your team close deals faster, allocate resources more effectively, and create a more predictable sales pipeline. In this blog post, we’ll define sales cycle length, explore some factors that influence it, and share some actionable tips to help you improve it.

What is a sales cycle length?

Sales cycle length refers to the total time it takes to move a prospect through the sales funnel, from initial contact to closing the deal. It’s a key performance indicator (KPI) that helps sales teams measure efficiency and identify potential roadblocks in their processes.

To calculate sales cycle length, use this simple formula:

Average Sales Cycle Length = (Total Days to Close All Deals ÷ Number of Deals)

For example, if your team closed 10 deals in a month, taking a total of 300 days from initial contact to closure, the average sales cycle length would be 30 days.

Tracking this metric over time gives you valuable insights into your team’s performance and helps pinpoint opportunities to shorten the cycle and increase productivity.

Why the sales cycle length matters for sales teams

Your sales cycle length is more than just a number. It’s an important factor that shapes your sales strategy. By understanding your sales cycle length, you can identify where time is being lost and take steps to streamline your sales process and understand modern buyer behavior. Here’s why it matters.

• Revenue forecasting: A predictable sales cycle length makes it easier to forecast revenue and set realistic sales goals. Inconsistent or lengthy cycles, on the other hand, can create uncertainty in your projections.
• Efficiency: A shorter cycle means your team can focus on closing more deals in less time, making better use of their resources and efforts.
• Customer experience: Prospects appreciate a smooth, efficient buying process. Reducing delays can improve customer satisfaction and build stronger relationships.
• Modern buying journey: Your sales cycle length needs to be up to date with the modern B2B buying journey which emphasizes the need for self-serve content that can help the decision maker. 

The role of buyer intent in sales cycle length

Modern buyers have access to more information than ever before, often conducting extensive research before engaging with a sales rep. This shift in behavior has significantly transformed the traditional sales cycle. By the time buyers reach out, they are typically 60–70% of the way through the decision-making process, as highlighted by Gartner.
To adapt to this, businesses must provide high-quality self-serve content, such as case studies, whitepapers, and product demos, on their websites. These resources address buyer questions early and can help shorten the sales cycle.
However, for larger B2B purchases, the process can still be prolonged due to the involvement of multiple stakeholders, each needing to align before a decision is made. Understanding and accommodating this modern buyer intent is crucial for optimizing the sales cycle.

Why shorter sales cycles benefit your team

A shorter sales cycle isn’t just about speed—it’s about efficiency and results. Here’s why reducing your cycle length matters:

1. Faster revenue realization: Closing deals more quickly improves cash flow and helps your team hit targets sooner.
2. Higher productivity: Sales reps can focus on closing more deals within the same timeframe, increasing output.
3. Improved customer experience: Prospects value a seamless and timely process, which can enhance trust and increase the likelihood of referrals.

Key factors that influence sales cycle length

A few  factors can affect how long it takes to close a deal, including:

• Buyer Behavior: Modern buyers often conduct extensive research before engaging with sales reps, impacting the cycle's duration. 
• Deal complexity: High-value or custom solutions often require more time to evaluate, negotiate, and finalize.
• Industry norms: Average sales cycle lengths vary across industries. For instance, software deals may close in 90 days, while manufacturing deals can take over 130 days.
• Decision-making process: Larger organizations with multiple stakeholders tend to have longer sales cycles due to internal approvals and negotiations.
• Lead quality: Poorly qualified leads can drag out the sales process or fail to close entirely, increasing the overall cycle length.
• Sales team alignment: Misalignment between sales, marketing, and customer success teams can cause friction, slowing the process.

How to measure your sales cycle length

To measure your sales cycle length accurately, there are a few steps you need to take.

1. Track your deals: Record the start and end dates for each deal. The start date is typically when initial contact is made, and the end date is when the deal is closed.
2. Calculate total days: Add up the number of days it took to close all deals within a specific period.
3. Find the average: Divide the total number of days by the number of deals closed during that time.

For example, if your team closed 15 deals in 450 days, the average sales cycle length would be 30 days. Tools such as folk CRM can simplify this process by automating data tracking and generating insights into interaction history and more.

Common sales cycle length by industry

Understanding the average sales cycle length across industries provides a useful benchmark for sales teams. While the duration varies depending on the complexity of the sale and the decision-making process, here are some general benchmarks. 

1. SaaS (Software-as-a-Service): 30–90 days

SaaS sales often involve free trials or demos, leading to shorter cycles compared to industries that require hardware or physical deliverables. However, enterprise-level SaaS solutions may take longer due to contract negotiations.

2. Manufacturing: 100–130 days

Manufacturing deals tend to be longer due to customizations, prototyping, and detailed approval processes involving multiple stakeholders.

3. Professional Services: 45–60 days

These sales are often relationship-driven, with shorter cycles compared to product-based industries, but still require time to build trust and outline service agreements.

Common challenges in managing sales cycle length

Many sales teams encounter obstacles that unnecessarily prolong the sales process. Here are some common pitfalls:

• Neglecting follow-ups: Delayed or inconsistent follow-ups can lead to lost momentum, giving prospects time to reconsider their interest or engage with competitors.
• Poor lead qualification: Spending time on unqualified leads means your team is chasing prospects who are unlikely to convert, elongating the cycle.
• Overcomplicated internal processes: Lengthy approval workflows or unclear handoffs between teams can create bottlenecks and delay deal closure.

Fortunately, there are a few simple steps you can take to avoid these pitfalls such as:

• Automate follow-ups with CRM tools.
• Define and enforce lead qualification criteria.
• Review and simplify internal approval processes to minimize delays.

How to improve your sales cycle length

Here are some actionable strategies to shorten your sales cycle:

1. Improve lead qualification: Focus on prospects with a high likelihood of conversion by using clear qualification criteria.
2. Streamline internal processes: Simplify steps like approvals and contract management to reduce bottlenecks.
3. Leverage technology: Use CRM tools like folk to automate reminders, track deal progress, and analyze patterns to uncover opportunities for improvement.
4. Prioritize follow-ups: Timely follow-ups keep prospects engaged and reduce the chances of deals stalling.
5. Use data to refine strategies: Regularly analyze your sales cycle data to identify bottlenecks and adjust your approach.
6. Align sales and marketing efforts: Ensure both teams work together to deliver consistent messaging and nurture leads effectively.

Conclusion

Understanding and optimizing your sales cycle length is crucial for improving efficiency, forecasting accuracy, and customer satisfaction. By tracking this metric and addressing the factors that influence it, sales teams can unlock greater productivity and close deals faster.

With tools like folk CRM, you can automate processes, track deal progress, and gain actionable insights to streamline your sales cycle. Start by measuring your current cycle length, identifying bottlenecks, and implementing strategies that keep your pipeline moving smoothly. Shorter sales cycles mean more time for what matters most: building relationships and closing deals.