Contract Management is often confused with solutions that simply generate documents.
A full-featured contract management solution minimizes risk while automating and streamlining each step of a contract’s life for both inbound and outbound transactions.
Chances are if you’re worried about your contract workflow, then you’re probably too busy to casually read analyst reports or industry research. Luckily, Aberdeen or Forrester generally author our beach reads.
Below are a few interesting stats to help you better understand how investing in a contract management solution can save money, delight prospective and current customers and support company business goals.
1. Contract approval time drops an average of 82% with the use of a Contract Management solution (Source: Aberdeen) Tweet this stat.
2. 90% renewal rates were seen by companies using Contract Lifecycle Management solutions (Source: Aberdeen) Tweet this stat.
3. 3.4 Weeks – Average amount of time it takes to create and approve a contract (Source: Forrester)Tweet this stat.
4. 20,000-40,000 – Average number of contracts per organization (Source: Price Waterhouse Coopers)Tweet this stat.
5. 85% of companies are using manual processes to manage sales contracts (Source: Aberdeen). Tweet this stat.
Based on these stats, Contract Lifecycle Management is an investment that can add a lot of value to your company.
Some of you might already understand the value of contract management solutions, but how do you know which solution is right for your company’s needs? Here are some key differentiators that set true contract management solutions apart from contract generation software.
A full-featured Contract Management (CM) solution will save your sales team time beyond contract generation. Everyone knows there’s more to closing a deal than sending off a document with a dotted line. The best CM solutions will provide all relevant parties - sales, legal and prospective client - with real-time tracking of important documents. This way, your sales team spends more time selling and less time chasing down documents.
Whether you’re working in simple transactions or complex, highly negotiated contracts, any changes need to be tracked. This especially saves your legal team time, as tracked changes eliminate the need to do side-by-side comparisons, as is common in more manual contract management processes. Beyond that, a full-featured CM should provide leadership with insight into all contracts in progress. They can use this perspective to identify bottlenecks at a high level and make tactical decisions to ensure revenue continues to grow.
The executive benefit to having a full-featured contract management solution cannot be overstated. Not only are you able to provide more selling time back to your sales team, and keep a close eye on contracts in play, but you’re able to ensure that risks associated unauthorized or unregulated contracts are mitigated.
The Contract Lifecycle Management (CLM) Process can be complex with plenty of places for contracts to hide. Even simple processes can be difficult to track. Many contracts require more than a single round trip, and more steps mean longer sales cycle and productivity killers.
Whether you’re in sales, legal or an executive leader, you’ll be more productive and more profitable leveraging a contract management solution.