What to measure between
The sales cycle is the time from the customer's first enquiry to their first payment. Not to a signed contract and not to delivery: a contract can be signed and the money never arrive.
If you take a deposit and a balance, measure to the first payment and count collection of the balance separately. Those are two different jobs and two different faults.
Benchmarks by deal size
By industry the spread is wider still: around 70 days in retail, often over nine months in manufacturing and equipment, six to twelve months in finance and healthcare because of approvals. Compare yourself with businesses of similar deal size and a similar number of decision makers.
What stretches the cycle
- The number of people deciding. Over five years it has grown from five to about seven. Each additional person adds weeks.
- The pause before payment. The customer is ready to pay and the bank details arrive twenty minutes later, or the next day.
- The quote as a finish line. The rep sends the price and waits. The customer waits too. The cycle stands still.
- No agreed next step. Every conversation should end with a specific date, not with «we'll be in touch».
How to measure yours
- Take every payment from the last three months.
- For each, find the date that customer first got in touch.
- Calculate the median difference in days.
- Calculate it separately for people who bought on their first enquiry and for people who came back later. Those are different cycles.
How to shorten it
- Price in the opening messages. Until price is on the table, the conversation circles.
- Bank details the moment they agree. Two messages back to back, without waiting for a reply.
- A date for the next step in every conversation. Not «I'll call you», but «Thursday before lunch».
- Talk to whoever decides. If you are talking to someone who cannot decide, your cycle equals their patience.