Nothing stretches the sales cycle more than a slow and inefficient contract management process. The sales team is unable to quickly close a deal even after the salesperson succeeds in establishing an agreeable price and terms, and the customer finally agrees to close the deal. Following are the hindrances in the path of smooth and fast closures:
- Waiting for the legal team to draft all their agreements
- No clarity on the review and acceptance of the customer redlines
- Difficulty in submitting contracts for review
- Negotiating terms and important clauses
- Waiting for appropriate signatories
- No visibility into the stage and status of contracts
The above-mentioned issues can be addressed by adopting the right technology that makes contracting swift for different stakeholders in an organization. An advanced contract management system accelerates the contract cycle and helps in revenue recognition. The software significantly helps the sales department to sell faster and looks out for new deals. With submitting and requesting contracts made easy, accurate, and efficient, the platform enables the salesperson to deliver contracts to the customers in much less time.
Thus, if an organization does not use an automated system for managing the contracts, it kills the sales department’s time with unnecessary administrative tasks that can be easily taken care of by the system instead. On the contrary, utilizing the benefits of an advanced contract management solution, the sales operations teams can optimize their resources and focus on initiating and maintaining customer relationships.
AI-led Contract Management Accelerating Sales Closures
Easy Requests & Approvals
Contract request via Salesforce helps in having the initial contract details in place. The request is then assigned to legal personnel with accurately captured all of the contract important metadata required to begin with the contract cycle, thus, saving the legal team’s time; gathering the information via emails or calls is undoubtedly very time-consuming. The automated workflow management ensures quick routing of the contracts to the appropriate parties, thus, keeping the deals on track. E-signature can be leveraged for fast and efficient internal or external approvals. Also, with the contract stage and status tracking feature, one can get clear visibility into the whereabouts of the agreements. These being taken care of the sales department can focus on procuring new contracts, making sales, and securing customer relations.
Faster Sales Closures
An advanced AI tool like Ultria Guide has a library of pre-approved templates and clauses that helps to draft contracts and checks clause deviations in case of third-party contracts. This not only lets the sales department be independent in their contract creation but also assures the legal team of proper language. With built-in contract creation capabilities, the platform also helps to eliminate back and forth negotiations and edits. Automated alerts and notifications can be set to ensure that the contract process moves forward smoothly and on time, thus, keeping the concerned team members responsible for the deadlines on loop. Hence, by streamlining the entire process and avoiding delay, all these factors collectively contribute to faster closure of deals.
Keeping up with the modern digital world, the secure cloud database provided by an effective contract management solution in the form of a centralized repository assists organizations in drafting, negotiating, collaborating, signing, organizing, and managing all their contracts. Creating contracts in one tool, signing them in another, and storing them in yet another is not a good idea as this is not very effective and complicates the process, though some enterprises actually do it. Conducting the whole process in a single location from the very beginning to the end streamlines the workflow, which, in turn, allows the teams to work faster with more efficiency.
Better Sales Forecasting
Contract management solutions powered by Contract Analytics help in customer segmentation, which is crucial for determining sales strategy and making decisions regarding sales coverage. It also provides sales operations with reliable insight into the performance of each segment. For example, Ultria’s AI engine Orbit Explorer navigates thousands of contracts to draw key statistics and insights in real-time. It also extracts metadata elements and creates structured data from your contracts for analysis and segmentation. Revenue can be forecasted accurately using contract data and usage trends. Installed base data and historic renewal rates also help to calculate renewal forecasts. With advanced analytics, sales managers can efficiently recognize trends in their territories, diagnose issues, and instruct their teams more effectively.
Thus, with an appropriate AI-powered contract management solution in place, the sales operations team of an organization can spend more time concentrating on the business aspect rather than worry about the administrative contracting tasks. They can also gain deeper visibility and efficiencies in the contract management process. This further leads to faster revenue generation and reduced expenditure.