What Are the Challenges of Contract Management in the Sales Department?
1. Manual contract management introduces bottlenecks into the sales cycle.
Legal is often the department responsible for creating, managing and maintaining contracts within the enterprise. Unfortunately, when Legal has to manage contracts manually, the contract management process gets bottlenecked. This leads other departments, particularly Sales, to see Legal as “the department of no.”
2. Manual contract management introduces (manual) errors.
And a lot is riding on the Legal team if they don’t catch mistakes, such as:
- Revenue leakage
- Extended sales cycle times
- Jeopardized customer relationships
How Contract Management Drives the Sales Cycle?
Contract management is no longer just about contracts – it’s also relevant to everything and everybody that touches contracts. Companies are now connecting the business cycle – quoting, contracting and revenue – into a seamless process where data and information can automatically and seamlessly feed into each other, so the appropriate parties have the most up-to-date and relevant information they need.
It is critical for your enterprise to establish a connected cycle – beginning with the quoting process all the way to revenue recognition – in order to enhance customer relationships and accurately identify and develop business best practices. When each step feeds directly and automatically into the next, the company can achieve the maximum amount of efficiency, accuracy, revenue velocity, and customer satisfaction.
Contract Management is becoming more and more intertwined with the Sales (quoting) process. For Sales, contract management is used to automate and enable faster, more accurate production and delivery of legal-approved contracts to a company’s prospects or customers. This way, Sales can focus on customer relationship management, communications, and revenue production.
Studies found that sales teams using contract management solutions tended to outperform non-users:
- 39% higher team attainment of sales quota (64% vs. 46%)
- 35% more reps achieving sales quota (62% vs. 46%)
- 24% shorter sales cycle (3.5 months vs. 4.6 months)
- 20% higher lead conversion rate (36% vs. 30%)
- 12% higher proposal volume (18.6 vs. 16.6 per rep, per month)
The Benefits of Automating the Contract Management Process:
The benefits of automating contract management are real. If your contracts are done faster, you’re going to be able to collect on them sooner. If they’re accurate, you’re going to have far fewer disputes. General Counsels and C-level executives can finally sleep at night because they are confident that the contract management process is working.
Contracts exist at the heart of B2B commerce, as they are the physical representation of the customer relationship. When you manage that relationship properly, you reap a variety of benefits.
Content Library Items are elements that you insert into a template to build out your content.