Sales cycle length is the average time from first contact to closing the deal. It is one of the most useful indicators, because it determines how many leads a company needs to generate today in order to have revenue several months from now. It varies by customer type and deal value – for small orders it is a matter of days, for larger corporate contracts a matter of months, especially where multiple people are involved in the decision or public procurement is required. The cycle can be shortened by responding to inquiries faster, better qualification, having materials ready for frequently asked questions, and removing delays on the company's own side, for example slow preparation of quotes. It makes sense to measure it separately for individual segments, because an average across all deals distorts the picture.
See also: Sales process stages, Response speed to inquiries, Sales pipeline hygiene.
