Metric of the week #2: Average sales cycle length

Another relevant metric to better predict and forecast your startup's revenue is the average length of the sales cycle. The average sales cycle duration is the average time it takes for a newly generated lead to turn into a paying customer. You could also call it the speed at which a lead is converted into a paying customer. So when you generate new leads, the average length of the sales cycle tells you when you can expect to make the most revenue from those new leads.

While a shorter sales cycle is always preferable, all other things being equal, the average length of the sales cycle varies by industry and business model. Benchmarking your average sales cycle length against similar companies and or competitors provides valuable information about your business, particularly the quality of your sales process and the product-market fit of the services and goods you offer.


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