You know that you need new, better contract management solutions for your business. Chances are, you’ve seen multiple signs that your business would benefit from more effective software. Perhaps your business is growing, or maybe you’ve noticed increasing problems with your current solution. If you’ve read our guide to selecting the best contract management software for your business’s unique needs, then you even know what features are a great fit for every department. There’s just one problem: in order to get the new software you so desperately need, you have to get the C-level executives on board. So try some of these persuasive arguments to convince your C-level executives that you need better contract management.
1. Effective contract management software can help prevent you from missing out on important contracts.
At several points in your contract negotiation cycle, you have the potential to lose a client. You may, for example, lose a client if it takes too long to move a contract through the approval process. You may miss out on clients if you have to change your terms due to a mistake on the part of the negotiation team. When the time comes to renew a contract, you may miss out on that important renewal if you fail to renegotiate with the client at the right point.
Effective contract management software can help prevent you from missing many of those important moments.
Enterprise contract management software doesn’t just streamline the approval process, which means you can get new contracts moved through more quickly. It also makes it easier for your team (and every other team) to see exactly where your contracts are at every step of the process. Salespeople, AR representatives, and internal audit teams can stay on top of every risk and deadline. That means the VP of sales, the CFO, and the CCO should all be on board.
When contracts come up for renewal, your contract management software can issue a notification that will prevent you from missing out on revenue and get new contracts signed faster.
2. Effective contract management software can decrease many of your business’s costs.
With poor contract management systems in place, every member of the team will spend more time accomplishing relatively simple tasks. Wasted time means wasted money. With effective contract management software, on the other hand, you can streamline many of those processes. In some cases, you can prevent the need for new people to fill existing positions. Adding new employees is one of the costliest (and riskiest) choices small businesses can make, and it’s not always the right choice. So bring up what contract management software can provide:
Contract templates for your negotiators and sales team
Many contracts can be created from a template. Once you have that template in place, your sales team and your negotiators can create those contracts more effectively. That will both decrease the amount of time they must spend on the contract and get it in the hands of your clients faster.
Streamlined contract approval
With solid contract management software, you can streamline contract approval. Instead of bogging down everyone’s teams with manual tasks, people can spend more time on growth, making solves, and solving complex problems.
Errors in your contracts can cause substantial costs for your business as a whole. Effective contract management software can help decrease those errors and protect your business. One of the biggest advantages is also the most basic: getting rid of manual data entry. Smart contract management software can integrate with your CRM and pull data from the customer accounts. That reduces typos, information errors, and gaps in information.
3. Contract management software can help decrease risks for your business.
Every time you sign a contract with a new client, your business accepts the risk that goes along with it. Those risks can be comparatively minor, or they can pose substantial dangers to your business. An effective risk scoring system can help reduce many of the risks faced by your business. Preemptive contract scoring gives you the tools you to renegotiate contracts before you sign something that will create excessive risk to your business. These risks include:
Contracts that have too-high costs for your business.
Do you need to bring in new employees to take care of a potential new client? Is a new client going to pose higher costs that your business can afford to front? If so, catch the problems before they start. Your contract management software can identify those red flags and prevent you from accepting those risks for your business.
In some cases, a contract may pose a compliance risk for your industry. It might, for example, have requirements that would cause you to miss OSHA compliance, or it has extra burdens due to HIPAA. Setting your contract management software to flag those risks can prevent expensive fines and fees.
Missed points in contract implementation.
How you implement your contracts will determine how your customers view you. With effective contract management software, you can identify anything that your team members may have missed as they implemented the contract. This ensures that your customers get exactly what they’re paying for.With good contract management software, your business will run far more smoothly. Also, your risks will be substantially decreased. Convincing a C-level executive of those needs, however, means looking at the business from their perspective. If you’re trying to talk your executives into better contract management software, use these examples and calculate the ROI. Schedule a free demo with ContraxAware so we can help you showcase exactly how enterprise contract management software can benefit your whole company.