What is Time to Close?
Time to close puts a number on how long your deals actually take. Without it, close dates are guesses and forecasts slip.
It varies enormously by segment and deal size, so a single company-wide average is nearly useless; the value is in segment-level measurement.
Short answer
Time to close is the elapsed time, usually in days, from a defined starting point such as opportunity creation to a signed deal. It is closely related to sales cycle length and is measured by segment because enterprise deals take far longer than transactional ones. Knowing your real time to close is essential for setting honest close dates and spotting where deals slow down.
Key takeaways
- Days from a defined start point to a signed deal.
- Closely related to sales cycle length.
- Varies widely by segment and deal size.
- The basis for realistic close dates.
Why it matters
If reps set close dates that ignore real time to close, the forecast slips period after period. Measuring it by segment grounds close dates in reality and reveals which stage adds the most delay.
How Ardovo handles it
Ardovo measures actual time to close by segment from your closed deals, so Rook can suggest realistic close dates and warn when a rep's projected date is far shorter than your history supports.
Frequently asked questions
What is the difference between time to close and sales cycle length?
They are nearly the same, both measuring elapsed days to a won deal. Time to close is often measured from opportunity creation, while sales cycle length may be measured from first contact. Teams should define the start point consistently.
Why measure time to close by segment?
Because it varies enormously: transactional deals close in days, enterprise deals in many months. A single blended average is misleading, so segment-level measurement is what makes close-date setting and forecasting accurate.
How does time to close improve forecasting?
It grounds close dates in reality. When a rep projects a close far sooner than your measured time to close for that segment, that date is optimistic and the forecast is at risk of slipping.