Sales Cycle Length
The average number of days from first qualified contact to a signed agreement for new clients.
Formula
Sum of (signed date − qualified date) ÷ Won new-client deals
Why Track It
Cycle length decides how far ahead the MSP must build pipeline and how long cash is tied up before new revenue starts. A lengthening cycle often means proposals are not answering the buyer's objections.
How It Is Measured
For each new-client opportunity won in the period, count the days from the date it was created or qualified in the CRM to the signed date. Average across won deals, and report the median beside it. Keep the start point consistent: first meeting or qualification, not first website visit.
Constraints
Averages mix small and large clients. It says nothing about deals that were lost, so read it beside win rate.
Measurement Note
Crewhu says the MSP sales cycle typically runs 30 to 120 days, depending on service complexity and client size. The danger line is the top of that range. Clients locked into another MSP's contract lengthen it for reasons sales cannot control.
Referenced In
Related KPIs
- CAC Payback PeriodThe number of months of gross margin from a new client needed to recover the sales and marketing cost of winning that client.
- Pipeline CoverageThe value of qualified open pipeline compared with the new revenue target for the same period.
- Win RateThe share of qualified sales opportunities that close as won in a period.
More in Sales and Growth
How efficiently the MSP turns opportunities into new recurring revenue. These numbers show whether the pipeline can carry the growth target and what each new client costs to win.
- CAC Payback PeriodOwner
- Client Lifetime Value to CAC RatioOwner
- Managed Services Revenue GrowthOwner
- Pipeline CoverageSales Manager
- Win RateSales Manager