Is my sales cycle too long?
The dotted green line shows the best performing SaaS companies in terms of the price vs sales cycle tradeoff.
Jacco prepared the chart by calling VP’s of Sales with the ask: what is your ACV and what is the sales cycle. The sales cycle is measured in days from Sales Qualified Lead to Win. For many it starts when the discovery call with sales is scheduled. We can further segment the data by size of businesses and across a few verticals (MarTech, EdTech, GovTech, etc.)
As a board member, Tae Hea is less interested in segmentation. Rather, he just looks at the financial return: How much is booked (as measured by ACV) for time spent by Sales (as measured by the sales cycle). In other words, just get to the green dotted line.
Most relevant during:
PMF phase
GTM Fit phase
Scale phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K
