SpringCM just unveiled the findings from its second annual State of Contract Management report.

Screen_Shot_2016-04-15_at_2.56.35_PM.png The results spotlight the stakeholders and tools involved in the contract process, as well as where delays and human error can occur.

We surveyed 822 business professionals from various industries about their contract process and the challenges they face throughout the contract lifecycle.

We’re highlighting three key stats that speak loudly at what is causing contracts to stall, and what businesses are doing to accelerate their contract process.

 

1. The contract process is the longest part of the sales cycle

About half of the respondents in our survey said their contract process lasts over four weeks. A drawn-out contract cycle will delay revenue for the company and put the salesperson in danger of missing quarterly sales goals.

 When it comes to contracts, saving time will save you money. The faster you can close the deal, the sooner you can realize revenue and make room for more deals.

So why does this process take so long? The contract process involves many steps that require generating documents, negotiating terms, seeking approvals and acquiring signatures. As the report shows, using manual contract tools during these stages can make the process even longer.

2. Manual contract tools are holding back revenue, and opening the door to risks

Manual tools are time-consuming to use and can extend the contract process. Not only is this holding back productivity and revenue, but these tools can further complicate the contract process by exposing a business to financial risks.

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Over 56 percent in our survey said they store contracts in shared servers prior to approval. When dealing with a high-volume of active contracts, finding the right contract can feel like searching for a needle in a haystack, unless they are tagged or organized in folders. On top of that, shared servers are often not secure enough to defend contracts from cyber attacks or hackers, putting your financial information at risk.

In our survey, 85 percent said they attach contracts to emails. Sending contracts via email not only exposes contracts to security risks, but every time a contract is sent another contract version is being introduced to the process, greatly increasing the risk of using the wrong contract version.

Out of all our respondents, almost 75 percent said their contract process is not automated. Automating each stage of the contract lifecycle can eliminate repetitive tasks, freeing up more time to do business. With an automated contract process, salespeople can focus on selling.

3. Businesses are saving time and money by investing in contract management software

Screen_Shot_2016-04-15_at_2.30.08_PM.pngContract management software will automate the contract process, while lending visibility to each stage of the contract lifecycle and addressing the risks involved.

Increasing revenue, improving the customer experience and mitigating risks made up the top 3 drivers behind businesses seeking a better contract management process.

Almost 40 percent surveyed said that implementing a contract management tool has saved their company time.

This is only a handful of statistics from the new 2016 State of Contract Management report. To gain more insights on how your contract process stacks up with other companies, download the free report by clicking the button below.

Download 2018 State of Contract Management