Every day, all over the world, businesses are using contracts to lock in business. Whether it’s for services or products, an MSA or a quote, contracts make it legal.
No matter the size of the business and no matter what type of business you’re in, you want to save money and increase revenue. And you want to make it all easy.
Many businesses focus on sales process automation without paying enough attention to their contracts. In fact, Aberdeen Group has found that 85% of companies are still using manual processes to manage contracts. As a result, contracts often get bogged down in the “last mile” of the agreement, when all parties would like nothing more than to get through to the “done” side, when signatures are inked and you can get on to providing the services, goods or anything else you just committed to.
You may have experienced the frustration of hunting for the latest version of a contract, or worse, sending redlines that you added to an out-of-date version. If you’re in sales, you’ve spent time tapping your foot waiting on feedback and approval from the legal team, fingers crossed that you can close this deal before end of quarter.
The delays are understandable, as legal teams want to ensure total clarity, but repeated legal reviews take time. Then there’s the problem of accuracy of data—because errors are generated from retyping form information back into a computer after the form is signed. And there’s a real cost. Manual, paper-based contract processes are expensive, with all that paper, faxing, and overnight shipping.
The key to solving the contracts piece of the puzzle is focusing and polishing your processes around the last step in closing the deal, just as you do at the top of the funnel and during the sales cycle. Setting up a solid, automated contract solution can cut down on the pain-points and costs often associated with a manual approach.
For more information on effective CLM implementation to achieve maximum ROI, as well as a roadmap for how to get the decision-makers in your organization on board, download our eBook, Making the business case for contract management.