Definition
Sales cycle length is the time from first touch or opportunity creation to close. It impacts CAC payback and forecasting.
Example
If your median sales cycle is 90 days, the cash you spend on acquisition today may not convert into customers (and revenue) until a quarter later.
How to use it
- Longer cycles increase cash needs and make payback slower in practice.
- Track by segment (SMB vs enterprise) because cycles differ.
Common mistakes
- Using one blended sales cycle for all segments and channels.
- Ignoring sales cycle when comparing CAC payback across channels (timing matters).
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Sales Cycle Length" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Sales Capacity Calculator (with Ramp)) to sanity-check assumptions.
- Read the related guide (e.g., Sales capacity planning: quota, attainment, ramp, and what to watch) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Sales Capacity Calculator (with Ramp): Estimate period bookings capacity from team size, quota per rep, expected attainment, and ramped vs ramping mix.
- CAC Payback Period Calculator: Estimate how many months it takes to recover CAC (months to recover CAC) using gross profit.
- Quota Attainment Calculator: Calculate quota attainment and pacing from booked revenue to date, quota, and days elapsed in the period.
Guides
- Sales capacity planning: quota, attainment, ramp, and what to watch: A practical guide to sales capacity: estimate bookings capacity using headcount, quota, expected attainment, and ramped vs ramping mix.
- Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging): A practical guide to pipeline coverage: connect quota, win rate, sales cycle length, and CAC/payback constraints to set realistic growth targets.
- Unit economics hub: CAC, LTV, payback, and runway (a practical stack): A practical hub for unit economics: CAC, fully-loaded CAC, LTV, payback, margin impacts, burn multiple, and runway planning.
- Quota attainment: formulas, pacing, and how to forecast safely: Learn how to calculate quota attainment and pacing, how to interpret projections, and what to pair it with (pipeline coverage, win rate).
- Pipeline coverage: what it is, how to calculate it, and benchmarks: Pipeline coverage explained: pipeline / quota, how win rate translates to required coverage, and how to avoid inflated pipeline.