Long Sales Cycle vs Short Sales Cycle – Key Differences

Long Sales Cycle vs Short Sales Cycle

The long and short sales cycles compare the amount of time it takes to complete the sales cycle. The length of a sales cycle depends on several variables. A short sales cycle may last only a few days or weeks, while a long sales cycle may last many months.

These are the differences between the two sales cycles.

What Is A Long Sales Cycle?

A long sales cycle refers to the period or duration of a sale taking long to complete. The duration of a sale may extend for months or even years. The length of the sales cycle can depend on the complexity of the product or the overall cost to purchase. Long sales cycles are common in industries where a large investment is required to purchase the product or service.

Sales representatives are required to continuously nurture the lead until they close the sale.

Characteristics Of Products That Excel In A Long Sales Cycle:

• The product is expensive, requiring a large capital investment.
• Products that require various stakeholders at various stages of the procurement process to make a decision.
• The product is complex and needs to be implemented within the company.
• A product that requires customization.

Example Of A Long Sales Cycle:

An example of a long sales cycle is the procurement of new software for recently built manufacturing plants making canned goods.

Common Industries That Thrive With Long Sales Cycles

Many popular industries thrive with long sales cycles and consistently nurtured prospective buyers. While many are in the B2B space, these are the most common industries that thrive in long sales cycles.

• Technology solutions—Technology solutions such as enterprise software are a great example of a long sales cycle. Incorporating enterprise software within an organization requires input from many stakeholders to make the necessary strategic decisions about whether the technology or software should be implemented.
• Industrial equipment – Industrial equipment or manufacturing equipment can be seen as complex, high-value goods that thrive in a long sales cycle. This is primarily because industrial and manufacturing equipment requires a lot of thought and many stakeholders are involved in the project to ensure everything works together uniformly. No manufacturing plant would be happy having to shut down because a part failed. The loss in revenue would be extreme.
• Commercial real estate – Purchasing commercial real estate is a large investment that requires significant thought. With this sale type, one has to ensure the location is in a prime area or one that is set to grow significantly. Discussions would be had over parking bays, the type of property, the amount of risk involved in the purchase, the tenants, and the property market performance in that area.
• High-end luxury goods – High-end luxury goods such as private jets and luxury yachts have a longer sales cycle. Thorough planning needs to happen to ensure the product meets the needs of the buyer. Questions may arise such as how far can the private plane travel without refueling, how many passengers can comfortably sit in the plane, or which airports should we have hangars in to store the jet. The same could be said about the luxury yacht.
• Professional services – Professional services such as legal services or insurance service providers require deliberation as to which company to use. 
• Medical equipment for hospitals and care facilities – Medical equipment purchases are also expensive purchases that require deliberation over the complex needs of those who need them the most. Various stakeholders such as doctors, admin staff, and management staff of the facilities would be involved in the decision.
• Custom manufacturing – custom manufacturing of goods is also a long sales cycle. This is because all aspects of the manufacturing process need to be completed to specification. Everything from bottling materials, packaging, shipping of goods, product design, and formulation needs to be carefully considered.
• B2B sales – B2B sales is a sector that thrives with long sales cycles and consistent nurturing. This is because a longer sales cycle is necessary. Having many decision-makers involved in the purchasing of high-value goods is standard practice today.

What Is A Short Sales Cycle?

A short sales cycle refers to the sales representative closing the deal in a day, a few days, or a week. These products are low-cost, quick to implement, and target a well-defined target market.

Characteristics Of Products That Excel In A Short Sales Cycle:

• The product is cheap/ inexpensive.
• Simple products that don’t require much thought to their purchase.
• The product is quick to implement within the company.
• A product that doesn’t require customization.

Example Of A Short Sales Cycle:

An example of a short sales cycle is the owner of a small business subscribing to accounting software to help balance their books.

Common Industries That Thrive With Short Sales Cycles

• Office Supplies – Office supplies are a necessity and are frequently purchased by businesses. Office supplies are routine and consist of items such as notepads, pens, and envelopes. Not much thought is given to these items, they are also low cost.
• Cloud Storage Solutions – Cloud storage is a popular choice for business owners. There are a few great options that allow business owners and employees to collaborate and store data.
• Marketing Automation Tools – Marketing automation tools such as HubSpot help businesses streamline their marketing processes and improve the way they interact with their clients.

Interestingly, 2 of the above are subscription based services.

The Differences Between Long Vs Short Sales Cycle

Conclusion

The difference between a long sales cycle and a short one is based purely on the cost of the product, the industry, and the number of decision-makers involved in the purchase. We hope you have found this post insightful and have understood what a long sales cycle is, what a short sales cycle is, and the differences between the two.

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