Plain-language questions
Ask for sales cycle length per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Sales
Sales cycle length: formula and example.
Sales cycle length is the average number of days a deal takes from first contact, or creation in the CRM, to being won. The shorter the sales cycle, the sooner the pipeline turns into revenue. It also helps you predict in which month open deals are likely to close.
Sales cycle length formula
Sum of (close date − created date) for won deals ÷ number of won deals
Worked example
In the third quarter, Acme Groothandel won 14 deals. In total, 896 days passed between creating and winning those deals. The average sales cycle is 896 ÷ 14 = 64 days.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A shorter sales cycle means deals close faster and revenue arrives sooner. Compare the cycle by segment, deal size and sales rep, as large deals almost always take longer. A sudden increase may point to more decision makers on the customer side, or to deals that are stalling.
Pitfalls with sales cycle length
- Including lost deals, which often run either very long or very short and distort the picture.
- Using the CRM creation date when deals are only entered weeks after the first conversation.
- Showing only the average, while a few long-running deals make the median much lower.
SQL & DAX
Calculating sales cycle length in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('quarter', closed_at) AS quarter,
COUNT(*) AS won_deals,
ROUND(AVG(closed_at::date - created_at::date), 1) AS avg_cycle_days,
percentile_cont(0.5) WITHIN GROUP
(ORDER BY closed_at::date - created_at::date) AS median_cycle_days
FROM deals
WHERE status = 'won'
GROUP BY 1
ORDER BY 1;Avg Sales Cycle (days) =
DIVIDE(
SUMX(
FILTER(Deals, Deals[Status] = "won"),
DATEDIFF(Deals[CreatedAt], Deals[ClosedAt], DAY)
),
CALCULATE(COUNTROWS(Deals), Deals[Status] = "won")
)In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate sales cycle length?
For each won deal, count the days between the created date and the close date, add them up and divide by the number of won deals. With 896 days across 14 deals, that is 64 days. Show the median alongside it to see the effect of outliers.
What is the difference between sales cycle length and pipeline velocity?
Sales cycle length measures how long a single deal takes on average, whereas pipeline velocity measures how much revenue flows through your pipeline per day. Sales cycle length is one of the four inputs of pipeline velocity. A shorter cycle therefore increases pipeline velocity.
How can you shorten the sales cycle?
You shorten the sales cycle by following up faster and involving the customer's decision makers early. Find the stage where deals sit the longest and tackle the delay there. Standard quotes and clear pricing also prevent unnecessary rounds of negotiation.
Further reading
- KPI librarySales KPIs: formulas and examplesSales KPIs measure how healthy your pipeline is and how well it turns into revenue. The data comes from your CRM, combined with invoiced revenue from your accounting system.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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