Have you ever wondered how long you should wait before following up with a potential customer? Following up too soon might make you seem pushy or unprepared. However, if you wait too long then you might miss the opportunity for a sale altogether. Many people who are in sales have faced this dilemma at some point which is why the sales cycle exists.
80% of sales require 5 follow-up calls after the meeting. 44% of sales reps give up after 1 follow-up.Brian Williams
A sales cycle refers to the series of events that takes place from the moment a salesperson first engages with a prospect up until the moment when the sale is made. Most businesses want to shorten the sales cycle as much as possible but this can only be done once they fully understand each step of the process first.
The 7 Stages of a Sales Cycle
Having a well-managed sales cycle is important for the health of your business. It will give you a clear idea of where you are at each stage of the process and what challenges you will have to deal with along the way.
Regardless of the product you are selling, every sale will follow a basic format. Rarely will a sale occur that does not involve these seven steps. It is important to master each of these stages and learn which areas you are weak in.
- Prospect
The first step is simply to find new prospects. This is a critical step because without prospects you will have no one to sell your product to. Sometimes your company will give you a list of leads to work with but often you will be responsible for finding them yourself.
A good way to begin prospecting is to determine who the ideal prospect for your business is. Figuring this out will make it easier for you to find ways to approach this person.
- Initiate contact
The way you initiate contact will largely depend on the industry you are in. The first contact will usually happen when you call or email your prospect to set up an appointment. It is a good idea to start by offering support or useful information on the first contact.
- Identify the customer’s needs
When you meet your prospect you will need to come prepared with the right questions and resources. That way you can discover what it is your prospect truly needs and whether or not they are a good fit for your company. This will help you figure out whether or not they are willing to try out your product before you spend a lot of time trying to pitch them.
- Present an offer
Your offer should serve as a solution to meet your prospect’s needs. You should use the information you have already gathered when you are presenting an offer to your prospect.
It’s important to keep in mind that you are representing your company. So you aren’t just selling your product, you are selling yourself and you want to make a good impression.
- Manage objections
Your ability to manage any objections, such as price, will largely determine whether or not you are able to close the sale. Remember that objections are actually a positive sign because it shows that your prospect is considering your offer.
- Close the sale
Once you have made your offer and answered your prospect’s questions it is time to close the deal and ask for the sale. This is actually the most frequently skipped stage which is ironic considering it is the most important. Mastering this difficult stage takes both time and experience.
- Ask for referrals
Set up a follow-up process so you can make sure your customers continue to be happy with your services. Not only will this lead to future sales but it will bring in referrals for new leads.
Why Do You Need a Sales Cycle?
A sales cycle gives you a template for what action you should be taking at each point in the sale. Every prospect should be approached differently because they are all in different stages of the sales cycle. When you understand where each prospect is in the sales cycle you can refine your message for that particular person.
Your sales cycle will also offer insight into how efficient your business’s sales operations are. The length of your sales process can be tracked and compared to the industry average. For instance, let’s say that your company’s sales cycle is shorter than the industry average. This could mean that your company’s sales department is performing more efficiently than most of your competitors.
This article in the Harvard Business Review shows that companies with a formal sales process generated 28 percent higher revenue growth. These companies had a clearly defined sales process, spent at least three hours a month managing their pipeline, and they trained their sales managers on how to manage their pipeline as well.
Using a CRM to Measure the Sales Cycle
Now you understand what the sales cycle is and what each stage involves. But you may be wondering how you are supposed to manage all of this and how to teach your employees to implement it. One solution to this problem is a Customer Relationship Management (CRM) system.
CRM is a software that allows you to manage your interactions with your prospects and customers. It also gives your employees a template to follow throughout the sales cycle and offers management a high level of oversight. You can monitor how your salespeople are performing, which stages are losing the most customers, and how different prospects are converting.
This article in Forbes shows that companies with a fully utilized CRM system boosted their sales by 29 percent. Here are some other benefits to using a CRM system:
- Evaluate your sales cycle
A CRM will guide you through each step of the sales cycle and track your progress. This will help you identify any trends in the sales cycle and spot potential problems before they occur.
- Measure performance
You can track how each employee is performing and identify any areas where improvement is needed. For instance, if an employee frequently loses the sale during a certain stage, the CRM will show you this.
- Predict your incoming revenue
Since your CRM will track where each sale is in the cycle, you have a better idea of your chances for success and future revenue.
Conclusion
Most business owners understand that a faster sales cycle is preferable because the longer a sale drags on the higher the likelihood that it will fall apart. By understanding the different stages of the sales cycle you will close more sales and manage your employees more effectively.
A CRM can be a helpful tool to help you identify what is and is not working in your sales cycle. There are many times when “trusting your gut” is a good idea but when it comes to managing your company’s future revenue it probably isn’t the best strategy.
Tallyfy offers a simple workflow and business process management tool to help you track your progress and problems. Our app will trigger workflows from your CRM for a smoother, more seamless process. You can gain insights on existing bottlenecks so you can continuously improve your processes.
Related Questions
What is the definition of a sales cycle?
A sales cycle is the customer’s journey from first contact to purchase. Having obsessed over workflows at Tallyfy, I see it as an orchestrated dance rather than a rigid funnel. Each interaction is a moment where trust either grows or fractures. What makes this fascinating is how different industries develop their own unique choreography—some elegant and efficient, others needlessly complex. Simplifying this dance is where the magic happens.
How long is a sales cycle?
Sales cycles are wonderfully unpredictable beasts! I’ve seen B2B software deals wrap up in 10 days (rare unicorns) and others that dragged on for 14 months. Your product complexity, price point, and the customer’s decision structure all factor in. The real trick isn’t necessarily shortening it—it’s making it predictable so your team can forecast accurately. Predictability beats speed almost every time.
What are the 7 stages of the sales cycle process?
The classic 7-stage sales cycle reminds me of a video game where each level unlocks the next: Prospecting (finding potential fits), Initial Contact (breaking the ice), Needs Assessment (uncovering pain points), Presentation (demonstrating value), Handling Objections (addressing concerns), Closing (sealing the deal), and Follow-up (nurturing the relationship). What’s captivating is how automation enhances—rather than replaces—human touch at each stage.
How do you calculate sales cycle?
Calculating your sales cycle is refreshingly straightforward—subtract the first contact date from the close date for each deal, then average them. The fun part (where my inner data nerd emerges) is segmenting by deal size, product type, or lead source to uncover hidden patterns. I once found a client’s “60-day average” was actually two distinct cycles—20 days for reorders and 90 for new business. That insight changed everything!
What is the difference between sales cycle and sales process?
The sales cycle tracks the customer’s buying journey, while the sales process outlines your team’s internal playbook. This distinction isn’t just semantic—it’s transformative. The most successful teams I’ve worked with at Tallyfy build their processes around the customer’s natural buying cycle, not forcing customers into their preferred system. When these two elements align perfectly, selling feels less like pushing and more like guiding.
How can I speed up my sales cycle?
Want to accelerate your sales cycle? Become ruthless about qualification. I’ve watched companies waste months on prospects who were never going to buy. Build self-service resources for common questions, automate follow-ups (while keeping them personal!), and—this saved me countless hours—be transparent about pricing early. Sometimes the fastest path isn’t doing things quicker but eliminating unnecessary steps altogether. Less really can be more.
How to improve your sales cycle?
To improve your sales cycle, first map it end-to-end in a workflow software tool. Find where deals consistently stall—these bottlenecks are improvement goldmines. Our team discovered prospects got stuck in evaluation because our demo process was needlessly complex. We simplified it and saw close rates jump 24%. Often the best enhancements come from removing friction rather than adding more activities or touchpoints.
Why Is the Sales Cycle Important?
The sales cycle forms the backbone of business predictability. Without understanding it, you’re essentially flying blind on revenue forecasts and resource planning. What makes me particularly passionate about this at Tallyfy is seeing how visualizing the cycle transforms chaotic sales efforts into systematic, measurable processes. It shifts conversations from the vague “Why aren’t we closing more?” to the actionable “Which specific stage needs optimization?”
How to Create Your Sales Cycle Process?
Creating your sales cycle process starts with observing reality, not imposing an ideal. Map what your successful customers actually did before buying. Interview your sales stars about what works. Then build a lightweight process mirroring this natural flow. The mistake I often see? Creating overly rigid processes that sales teams quietly ignore. Your process should feel like a helpful assistant, not a micromanaging boss—guiding rather than constraining.
How to Measure Your Sales Cycle?
To effectively measure your sales cycle, track three metrics: average length, stage conversion rates, and velocity (how quickly deals move through each phase). But averages can be deceptive! I discovered our “typical” 45-day cycle actually masked two distinct patterns—20-day cycles for small deals and 85-day cycles for enterprise. Separating these revealed entirely different optimization needs than the misleading average suggested.
What to do to shorten the Sales Cycle?
To shorten your sales cycle, become obsessive about removing friction. Create a knowledge base for common questions. Use workflow automation software to nudge deals forward while your team sleeps. Address objections before they arise. And here’s a counterintuitive tip: sometimes slowing down early stages with better qualification actually accelerates overall cycles by filtering out time-wasters who never intended to buy.
What does Tallyfy believe about sales cycles?
At Tallyfy, we see sales cycles as workflow problems in disguise. While traditional CRMs track what happened, they often miss orchestrating what should happen next. We believe predictable sales success comes from well-designed workflows—not heroic individual efforts. We’re passionate about eliminating those constant “What’s the status?” questions that plague sales managers by replacing manual check-ins with automated, real-time visibility into every deal’s progress.
How does the sales cycle relate to the real-world?
Nothing illustrates the reality of sales cycles like hearing from people who’ve transformed theirs:
“We were all very surprised at how quickly our clients became comfortable with using Tallyfy.” – Michelle Murray, Managing Director / CPA at Segue Partners
“This is the key to business growth. I don’t have to spend a lot of time training freelancers. There’s a ton of applications for it in sales and other such processes, but I’m especially excited for the ability to hand-off tedious workflows that I don’t want to have to explain to someone else again and again.” – Kyle Lawrence, Development Manager at Design & Develop
These real-world experiences show how proper workflow management directly impacts sales effectiveness. See more customer stories at https://tallyfy.com/customers/
How can a sales manual software help optimize the sales cycle?
A well-designed sales manual software doesn’t just document your process—it activates it. We’ve found that static sales playbooks gather digital dust, while interactive ones that guide reps through each stage actually get used. The magic happens when your documented best practices seamlessly guide your team’s next actions. When your manual becomes part of the workflow rather than separate from it, cycle times shrink and consistency improves dramatically.
