Landing new and repeat customers for your company usually falls on the shoulders of the sales department. But for them, it’s about more than getting people to sign on the dotted line. It’s about building and fostering relationships to meet client expectations while finalizing a deal that also protects the best interest of the company.
This delicate balance is accomplished through the drafting, negotiation, and execution of a contract. With each sale, a different contract must be drawn up, reviewed, edited, and approved before it’s sent out to the participating parties to be signed. While that seems like a straightforward process, there are many hurdles along the way that can slow down the deals, degrade customer satisfaction, threaten profit optimization, and introduce risk.
These hurdles come in the form of a lack of transparency as to where the contracts are in the review process, delays due to workload bottlenecks, missed errors in legal language, and more challenges intrinsic to manual processes. Not only can this cost your company financially, but relationships with customers may be damaged.
Luckily, new contract lifecycle management (CLM) tools have been created, including our own, to help both sales and legal work together and avoid costing the company revenue.
Read below to see how CLM tools are helping sales teams with their three main goals, then check out our eBook to learn more about the CLM solutions that Wolters Kluwer offers.
Most sales teams have three basic goals
The goals not only help them meet their quota and increase commissions, but they also drive revenue for the company.
#1 Close more deals and close them fast
According to the Aberdeen Group, 18 percent of an enterprise’s sales cycle is attributed to contract creation, negotiation, and approval. Excessive time spent on the identification and elimination of bottlenecks during final negotiations slows revenue recognition and leaves less available time for the sales team to focus on what they do best: sell.
#2: Customer satisfaction and value
The same inefficient processes that cause your headaches likely leave your newest potential client waiting days or weeks for contract finalization. According to Salesforce, 75 percent of business buyers say connected processes are very important to win their business.
#3: Favorable sales terms and organizational policy
Alignment on this goal between sales and legal is vital to the reduction in current cycle times. However, their primary goal is focused on protection against the risk that results from contracts that contain unapproved legal language.
The introduction of a CLM tool can help accomplish these goals and avoid hurdles
The contract lifecycle used to move at a snail’s pace. But a CLM solution answers the call to digitalize contracts and simplify purchase processes to overcome hurdles that slow deals, degrade customer satisfaction, threaten profit optimization, and introduce risk.
CLM solutions help sales teams meet each of the above-mentioned goals by:
- Making negotiating new terms and approvals much simpler and not leaving them at the mercy of countless approvals or potentially being lost as they are passed around.
- Keeping your customers satisfied with the company as a whole due to the timeliness and accuracy of contracts when they arrive.
- Integrating a clause library that ensures pre-approved legal language and fallback provisions are consistently in place. Furthermore, changes to a single clause will flow across all relevant contracts, and clause analytics will allow for further risk mitigation.
Not only do these allow support client satisfaction, but they help avoid compliance-based fines, penalties, and litigation.
Find out more about how a CLM solution could help you.
When your reputation is on the line, along with the completion of a deal, don’t leave it to manual contract management. Show your clients you’re a first-rate organization that truly values their time and improve sales and legal team collaboration to support organizational risk mitigation.
Click here to read our eBook on accelerating sales with contract lifecycle management, then contact us to find out more about how CLM Matrix can deliver efficiencies in support of profit optimization, client satisfaction, and risk reduction.