Report Highlights: Sales Cycle for Process Adjustment
Welcome to the InsightSquared Report Highlight Series. The intention of these posts is to take a deep dive into utilizing InsightSquared to make data informed decisions about your sales organization. We hope you will share ways your company utilizes these reports so that we can all learn from each other.
Please Note: The data represented in these posts comes from our demo portal.
Sales Cycle > Over Time for Process Adjustment
“Time kills all deals” may be an oversimplified way to consider your sales cycle performance. The old adage could reign true for your business, but it grazes over the questions of “why” and “where” they stalled. In this Report Highlight, we are going to focus in on the InsightSquared Sales Cycle Over Time report and how to use your data to identify areas of improvement in the buyer’s journey.
Let’s have a look at Sales Cycle for Q4 through Q1:
An average sales cycle of 41 days could be aligned with your expectations. Here, we unveil that deals are spending the majority of their time in stages after evaluation. Furthermore, we are seeing variance month over month with time spent in stage 3 and 4. This raises several questions
- Are your reps spending more time chasing down decision makers?
- Are there clear expectations set on what the buying process looks like on the prospect side?
- How confident are my Best Case/Commit forecasts based on late stage variance?
With the sample set we are looking at, we decided to re-establish the exit criteria of our Eval Stage to include more emphasis on explaining the buying process as well as identifying and building relationships with the actual buyer. Here are the results for Q2 through Q3:
The average sales cycle went down three days from 41 to 38. What’s the difference? By focusing on better evaluation we were able to trim down the amount of time spent in post-eval stages with less variance over time, giving us confidence that we can better identify winners and losers in post evaluation stages. Furthermore, if you look at these results in tandem with the Sales Funnel report, you will note that we also increased our Stage 4 to Closed-Won conversion rate by over 12%:
What improvements should come next? For example, if your company has a goal of shortening your sales cycle, it is important to keep an eye on process changes within a given stage.
Ask questions like:
- Are there tools on the market that can help expedite a rep's touch points throughout this stage?
- Are there too many steps a rep has to take within this stage's exit criteria?
No matter what path we take for next steps, we now have a baseline to measure against on our post-Eval winners.