Sales cycle
The sales cycle is the time it takes for a deal to go from first contact with a client to payment, usually measured as an average or median in days.
How it is measured
For each won deal, take the number of days between the first contact and the payment. The median of these values over a period is the typical cycle. If most deals close within 10 to 20 days and the median is 14, that is the cycle for this business. The numbers are an example.
It is useful to measure the time at each stage as well. That shows exactly where deals slow down.
Why it matters
Cycle length shapes almost every sales decision. It determines when marketing efforts will turn into revenue, how far ahead the pipeline must be filled and how reliable this month’s forecast is. A deal that typically takes six weeks will not pay this week, whatever the rep says.
A cycle that grows longer is an early warning: clients hesitate more, decisions involve more people, or reps follow up less.
Typical mistake
Using the average only. A few deals that dragged on for months stretch it and make the typical case look slower than it is. The median is more honest.
Another mistake is mixing different deal types. A small repeat order and a large first contract have different cycles and need separate numbers.
A quieter error is counting only won deals and ignoring how long lost deals stayed open.
What to do
Measure the cycle by segment and deal size, using the median. Watch the time spent at each stage. Shorten the parts the company controls: response time, speed of offers and invoices, regular follow-ups.
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