Sales Cycle Length

The elapsed time from an opportunity's creation to its close. The time dimension underneath capacity planning and forecasting.

The measurement and its dependency

Elapsed time from a defined start to close. Everything rests on the start definition, and different teams routinely use different ones without noticing.

Start point changes the answer
Start eventWhat it measuresTypical effect on the figure
First touchFull buying journeyLongest; includes pre-intent research
Opportunity creationActive sellingDepends entirely on creation discipline
Qualification passedCommitted pursuitShortest; excludes exploration

Source: Distinctions stated here

Use the median

Cycle distributions are right-skewed — most deals cluster and a few run for many months. The mean sits above the bulk of the distribution and describes no typical deal. Report the median, and the ninetieth percentile if you want the tail.

Decomposing a change

  1. Compute time in each stage separately, on a creation cohort. A lengthening cycle is almost always one stage growing rather than uniform slowdown.

  2. Check the mix. A shift toward larger deals lengthens the cycle without anything getting worse, and treating that as a problem produces the wrong response.

  3. Check creation discipline. If opportunities start being created earlier, the cycle lengthens with no change in buyer behaviour.

  4. Split won and lost. Lost deals often run longer, and a change in the lost-deal cycle is a qualification finding.

What it is used for

  • Aligning forecast periods to spend — matching acquisition cost to the deals it plausibly created requires this figure.

  • Setting the pipeline coverage horizon, since coverage should look forward at least one cycle.

  • Ageing pipeline: opportunities older than the median cycle convert materially worse and are worth reporting separately.

RELATED TERMS

COMMON QUESTIONS

How do you measure sales cycle length?
Elapsed days from a defined start event to close, summarised as a median. The start event choice — first touch, opportunity creation, or qualification — changes the figure more than anything about how you sell.
Should you use mean or median sales cycle?
Median. Cycle length distributions have a long right tail, so the mean is pulled upward by a handful of very long deals and describes no typical deal.
Should lost deals be included?
Report both. Won-only cycle length is what planning needs; including losses reveals how long the organisation spends on deals that do not close, which is a capacity finding.
Why did our sales cycle get longer?
Decompose by stage before concluding. A longer cycle is one stage growing, a mix shift toward larger deals, or a change in when opportunities are created — and those have entirely different responses.

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