The Deal Closure Duration and the number of Activities to Win a Deal are key metrics for understanding how sales engagement efforts scale with contract value in the construction industry. Here’s a deeper look at each part of these insights:

Deal Closure Duration

  • Average Time to Close: The typical deal takes around 118 days, or nearly four months, from the initial engagement to final closure. This time frame encompasses all activities and interactions necessary to convert a lead into a customer.
  • Implications of 118 Days: While the time may seem lengthy, it likely reflects the complex decision-making and approval processes often required in construction contracts, particularly for high-value projects.

Activities to Win a Deal

The number of activities needed to secure a deal is closely tied to the contract’s value. Higher-value contracts generally demand more engagement and sustained communication. Here’s how activity levels break down by contract value:

  1. Contract Value ($0 to $1,700)
    • Average Activities: ~3.58
    • Characteristics: Fewer touchpoints are sufficient, likely due to simpler scopes of work and quicker decision-making cycles.
  2. Contract Value ($1,710 to $3,500)
    • Average Activities: ~6.57
    • Characteristics: These deals require a moderate level of follow-up, with slightly more complexity or considerations for the client.
  3. Contract Value ($3,591. to $9,800.)
    • Average Activities: ~8.47
    • Characteristics: This level shows a notable increase in required activities, suggesting more client-side decision factors and a need for stronger relationship-building.
  4. Contract Value ($9,870 to $243,247)
    • Average Activities: ~15.16
    • Characteristics: For high-value deals, extensive engagement is essential, involving numerous calls, emails, and follow-ups to address client concerns, provide clarifications, and navigate lengthy approval processes.

Correlation of Activities to Contract Value

  • Insight: As the contract value rises, the required number of activities increases. This positive correlation emphasizes the need for a strategic, multi-touchpoint approach with high-value prospects. More time and resources may be needed to secure these larger deals, reflecting their complexity and higher client expectations.

Types of Activities

An activity can take various forms, each contributing differently to the sales process:

  • Email: Useful for formal communication, sending detailed information, or follow-up notes.
  • Call No Response: Important to track as part of persistence in outreach.
  • Call Conversation: Direct communication, crucial for addressing questions and building rapport.
  • SMS: Quick updates or confirmations that can speed up parts of the communication cycle.
  • Voicemail: Helpful for leaving a personal touch, even if immediate responses aren’t possible.

These types of activities form a comprehensive approach to building and maintaining client relationships across different stages of the deal cycle.