Sales Cycle

“Average Sales Cycle” (ASC) is a sales metric that measures the amount of time (usually in days) from your first touch with a prospect to closing the deal, averaged across all won deals. For example, if you email Clorox (to buy your product) on January 1 and then you go through your entire sales process with them, and close them (contract signed) on January 30, your sales cycle is 30 days. In SMB world, you may be able to close deals in anywhere from 1 day (often called a “one call close”) to a couple weeks, given how few decision makers there are (plus, there may be a ‘click to pay’ process, as opposed to requiring contract signatures and legal reviews). In Enterprise world (especially top-down selling), it’s much longer. Keeping track of ASC helps you get better at projecting revenue and forecasting for yourself and investors. We recommend having at least 10 deals closed in order to properly have enough of a sample size to report on an average sales cycle. According to a 2020 study b

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• Belinda Mo