{"id":2414,"date":"2023-03-03T10:31:58","date_gmt":"2023-03-03T10:31:58","guid":{"rendered":"https:\/\/monocroft.com\/?p=2414"},"modified":"2023-04-08T02:30:40","modified_gmt":"2023-04-08T02:30:40","slug":"dax-formula-to-calculate-non-standard-sales-cycles","status":"publish","type":"post","link":"https:\/\/monocroft.com\/dax-formula-to-calculate-non-standard-sales-cycles\/","title":{"rendered":"DAX Formula to Calculate Non-standard Sales Cycles"},"content":{"rendered":"\n<p>In Power BI, you can calculate the non-standard sales cycles with the DAX formula using time intelligence functions, such as <code><strong>TOTALYTD<\/strong><\/code>, <code><strong>DATEDIFF<\/strong><\/code>, etc. These functions let you calculate sales over a rolling period of time.<br><br>In this article, I will walk you through the steps to use DAX formulas to calculate non-standard sales cycles in Power BI.<\/p>\n\n\n\n<p>Let&#8217;s get started.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are Non-Standard Sales Cycles?<\/h2>\n\n\n\n<p>Non-standard sales cycles are sales cycles that do not follow the traditional and predictable patterns of sales. In a non-standard sales cycle, for example, a sale may take longer than usual to close or involve multiple decision-making stages.<\/p>\n\n\n\n<p>While analyzing non-standard cycles can be challenging, with the right techniques, you can gain valuable insights into your sales performance. <\/p>\n\n\n\n<p>Thus, using DAX formulas in Power BI is one effective way to calculate and analyze non-standard sales cycles.<\/p>\n\n\n\n<p>To calculate the non-standard sales cycles using the DAX formula, you can follow these steps:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Create a Date Table<\/h2>\n\n\n\n<p>The first step is to create a date table, as this will help you to analyze sales data by date and track the duration of sales cycles.<\/p>\n\n\n\n<p>This is because, to use time intelligence functions in DAX, you need to have a date table in your data that covers the entire date range in your data.<\/p>\n\n\n\n<p>Now, to create a date table, go to the <strong>Modeling<\/strong> tab and click on <strong>New Table<\/strong>. Then enter the formula:<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>DateTable = CALENDAR(MIN(Sales[Date]), MAX(Sales[Date]))<\/code><\/strong><\/pre>\n\n\n\n<p><em>NB: Replace &#8220;Sales[Date]&#8221; with the name of the date column in your data model that you want to use as the basis for your date table.<\/em><\/p>\n\n\n\n<p>Also, you can customize start and end dates if you want to analyze data for a specific time period. To do this, you can use this formula:<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>DateTable = CALENDAR(DATE(2021,5,1), DATE(2022,5,31))<\/code><\/strong><\/pre>\n\n\n\n<p>This formula will create a table with a list of dates from May 1, 2021 &#8211; May 31, 2022.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Calculate the Length of the Sales Cycle<\/h2>\n\n\n\n<p>In every business, one of the key metrics is the length of their sales cycle which is the amount of time it takes for a potential to become a customer.<\/p>\n\n\n\n<p>So, to calculate this, you will create measures that subtract the date a lead was created from the date they became a customer. <\/p>\n\n\n\n<p>You will then use these measures to analyze your sales cycle. Here are a few examples of the Length of Sales Cycle:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Qualification Stage<\/h3>\n\n\n\n<p>In this cycle stage, the formula calculates the time between first contact and product qualification.<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>Qualification = CALCULATE( MIN('DateTable'[Date]) - MIN(Sales[Date]), Sales[Stage] = \"Qualification\" )<\/code><\/strong><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\">Needs Analysis Stage<\/h3>\n\n\n\n<p>During this stage, the formula calculates the duration between the customer&#8217;s qualification date and their needs analysis.<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>Needs_Analysis = CALCULATE( MIN('DateTable'[Date]) - MIN(Sales[Date]), Sales[Stage] = \"Needs Analysis\" )<\/code><\/strong><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><strong>Negotiatio<\/strong><\/strong>n Stage<\/h3>\n\n\n\n<p>In this stage, the formula calculates the duration between the date a customer&#8217;s needs are analyzed and the date of the negotiation.<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code><strong><code><strong><code>Negotiation <\/code><\/strong><\/code><\/strong>= CALCULATE( MIN('DateTable'[Date]) - MIN(Sales[Date]), Sales[Stage] = \"<strong><code><strong><code>Negotiation<\/code><\/strong><\/code><\/strong>\" )<\/code><\/strong><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\">Closing Stage<\/h3>\n\n\n\n<p>During this stage, the formula will calculate the duration between the time in presentations and the date of the sale.<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>Closing = CALCULATE( MIN('DateTable'[Date]) - MIN(Sales[Date]), Sales[Stage] = \"Closing\" )<\/code><\/strong><\/pre>\n\n\n\n<h2 class=\"wp-block-heading\">Create a Calculated Column to Assign the Stages<\/h2>\n\n\n\n<p>Now, to calculate non-standard sales cycles, you will assign each sale to a stage based on the date it was closed. To do this, go to &#8220;Modeling&#8221; in the ribbon, click &#8220;New Column,&#8221; and enter the following formula:<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>Stage = \n    SWITCH(TRUE(),\n        Sales[Date] &lt; DATE(2021, 1, 1), \"<strong><code>Qualification<\/code><\/strong>\",\n        Sales[Date] &lt; DATE(2021, 4, 1), \"<strong><code>Needs_Analysis<\/code><\/strong>\",\n        Sales[Date] &lt; DATE(2021, 7, 1), \"<strong><code>Negotation<\/code><\/strong>\",\n        Sales[Date] &gt;= DATE(2021, 7, 1), \"Closing\"\n    )<\/code><\/strong><\/pre>\n\n\n\n<p><em>Replace the dates in this formula with the dates that mark the transition between each stage of your sales cycle.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">DAX Formula to Calculate Non-standard Sales Cycles<\/h2>\n\n\n\n<p>Finally, to calculate the non-standard sales cycle in Power BI, you can use the following DAX formula:<\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong><code>Non-Standard Sales Cycle =\nVAR MaxDate = MAX(Sales[Date])\nVAR MinDate = MIN(Sales[Date])\nVAR TotalDays = MaxDate - MinDate\nRETURN\nSUMX(\n    VALUES(Stage[Stage]),\n    DATEDIFF(\n        CALCULATE(MIN(Sales[Date]), FILTER(ALL(Sales), Sales[Stage] = EARLIER(Stage[Stage]))),\n        CALCULATE(MIN(Sales[Date]), FILTER(ALL(Sales), Sales[Stage] = EARLIER(Stage[Stage]) &amp;&amp; Sales[Date] &gt;= MinDate)),\n        DAY\n    ) \/ TotalDays\n)<\/code><\/strong><\/pre>\n\n\n\n<p>This formula uses the <strong>DATEDIFF <\/strong>function to calculate the number of days a deal spends in each stage, and then divide that by the total length of the sales cycle (in days) to get a percentage.<\/p>\n\n\n\n<p>It then sums up these percentages for each stage, resulting in a total percentage for the non-standard sales cycle based on the Length of the Sales Cycle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What is the purpose of calculating a Non-standard sales cycle?<\/h3>\n\n\n\n<p>Calculating a non-standard sales cycle can help business managers understand the length of their sales cycle and identify areas of improvement in their sales process. <\/p>\n\n\n\n<p>It can also help them make more accurate revenue forecasts and allocate resources more effectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can the DAX formula be customized for different sales cycles?<\/h3>\n\n\n\n<p>Yes, you can also customize DAX formulas for different sales cycles by changing the conditions in the <strong>SWITCH <\/strong>function.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to define the dates of your non-standard sales cycle?<\/h3>\n\n\n\n<p>Based on your business needs, you can define the dates for calculating your non-standard sales cycle.<\/p>\n\n\n\n<p>For instance, you may decide to start your sales cycle on the first day of a certain month. Also, you can make use of your fiscal year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is DAX?<\/h3>\n\n\n\n<p>DAX (Data Analysis Expressions) is a <strong>formula language<\/strong>. It is then used to define custom calculations for data analysis and modeling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Once you define these measures, you can add them to your visuals to analyze your non-standard sales cycle.<\/p>\n\n\n\n<p>You can also modify the formulas as needed to calculate other measures, such as quarterly or monthly sales.<\/p>\n\n\n\n<p>If you enjoyed reading this article, you can also check <a href=\"https:\/\/monocroft.com\/how-to-calculate-the-cumulative-value-from-a-start-date-in-power-bi\/\" target=\"_blank\" rel=\"noreferrer noopener\">how to calculate the cumulative value from a start date in Power BI<\/a>.<\/p>\n\n\n\n<p>Happy Analyzing!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Power BI, you can calculate the non-standard sales cycles with the DAX formula using time intelligence functions, such as &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"DAX Formula to Calculate Non-standard Sales Cycles\" class=\"read-more button\" href=\"https:\/\/monocroft.com\/dax-formula-to-calculate-non-standard-sales-cycles\/#more-2414\" aria-label=\"More on DAX Formula to Calculate Non-standard Sales Cycles\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":2416,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - 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