Does a Higher ACV Automatically Mean a Longer Sales Cycle?

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Does a Higher ACV Automatically Mean a Longer Sales Cycle?

In this video quick answer, Kevin Probst, explains why you shouldn’t see a high ACV as an excuse for longer sales cycle. Check out this 1-minute video, or read the full transcript below.

 

I was interested in the question: “Does a higher ACV automatically also means longer sales cycle?” It’s something that you would assume somehow. But, in the extreme cases, also painted this relatively clear picture that you won’t find the smallest ACVs and sales cycles over five months. And you wouldn’t also find the biggest ACVs in below one-month sales cycles.

Interestingly the majority of the companies can actually also close deal sizes, so ACVs of 25,000 to 49,000, relatively big, in not only three to four, but also one to two months. 

I find this really impressive and the lesson that I learned here is that you shouldn’t see a high ACV as an excuse for longer sales cycles. There are data shown from the sales deals that are publicly shared data. There are many companies that can push relatively high ticket deals through the pipeline in less than two months. It seems that somehow suggested, seems more a matter of efficient processes than what your deal size looks like.

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