To find out your average sales cycle, simply add up the duration of each transaction to get a total of 40 days for all sales combined.<\/p>\n
Then divide the number of days by the number of transactions to get the average duration in days.<\/p>\n
With this indicator, you can estimate that similar transactions in the future will take about 13.3 days. This allows you to forecast future revenues and predict closing dates.<\/p>\n
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<\/i>Attention<\/span><\/p>\nThere is always a (significant) bias with averages. A good average should be the average of (relatively) homogeneous objects. So keep an eye on the standard deviation (the variance) of the dataset, even if it means segmenting into several sales cycles (if they are really very different) and measuring the duration for each.
\nIf<\/strong> you get a roughly Gaussian (bell-shaped) distribution, you have a good chance of being in the ballpark. If you get two or more peaks, segment.<\/p>\n<\/div>\n<\/span><\/span>When should the sales cycle be started?<\/span><\/span><\/h3>\nWhen it comes to measuring the length of your sales cycle, there are several schools of thought, including when the sales cycle actually begins.<\/p>\n
Although it sounds simple, defining the starting point of your sales cycle is trickier than you might think. There are three moments that can signal its start:<\/p>\n
\n- When a contact enters your CRM for the first time.<\/li>\n
- When you first contact a new prospect.<\/li>\n
- When a prospect becomes an opportunity.<\/li>\n<\/ul>\n
Tracking your sales cycle from the moment a new lead is created in your CRM is known as first contact attribution. Those who use this method often focus on optimising top-of-channel activities, such as lead generation and prospecting.<\/p>\n
On the other hand, starting your sales cycle when you first contact a new prospect excludes prospecting from the measure. It may be a better option if you buy lists of prospects and enter them into your CRM before contacting them (for example, if you need to do further research but want to keep their details in your system).<\/p>\n
Finally, some companies prefer to start their sales cycle when a lead becomes an opportunity. This results in fewer steps in the sales cycle, which is beneficial for teams that want to focus on optimising the negotiation, closing and follow-up stages. However, this only works if your team has a clear understanding of the difference between leads and opportunities.<\/p>\n
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<\/i>In brief<\/span><\/p>\nWhichever starting point you choose, make sure that your entire team is clear about which specific activity triggers the sales cycle. Constant monitoring is essential to calculate an accurate average time and identify how changes in the sales process can be used to shorten your sales cycle.<\/p>\n<\/div>\n
<\/span><\/span>10 tips to speed up your sales cycles<\/span><\/span><\/h2>\n![](\"\/wp-content\/uploads\/2022\/01\/acce\u0301le\u0301rer-cycles-de-vente.jpg\")
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<\/span><\/span>1. Work on your targeting<\/span><\/span><\/h3>\nIf your sales pipeline starts to leak at the qualification stage, you may be attracting prospects who match your interests but are not the decision makers you need. It’s all about identifying the titles that cause the most difficulty in your conversation – perhaps it would be better to omit them from your research?<\/p>\n
<\/span><\/span>2. Review each step to identify blockages<\/span><\/span><\/h3>\nThe more you know about your prospects’ journey through the pipeline, the more likely you are to detect a problem before it’s too late. If you see a bottleneck developing, focus on the relevant stage of the sales cycle to find the cause of the blockage.<\/p>\n
For example, if your prospects tend to get stuck at the proposal stage, perhaps you need to spend more time researching them before submitting your offer, or work with your prospect to write a proposal that everyone agrees on.<\/p>\n
<\/span><\/span>3. Create deadlines<\/span><\/span><\/h3>\nIf your prospects are taking a long time to respond, it may be because you have not set a deadline for them. The goal is for your sales representatives to get them to set a date for the next call or meeting and stick to it.<\/p>\n
Also, take the opportunity to create a sense of urgency: there’s nothing like a time-limited offer to fire up your prospects. This could be setting an expiry date for your offer, giving them the opportunity to be grandfathered in before your rates go up, or offering them a gift if they sign up before a certain date.<\/p>\n
<\/span><\/span>4. Be consistent in your reminders