Contract Lifecycle Management Helps Sales Executives Close Deals Faster
Every sales executive has the same goal — secure more business faster at highest contract margins and attainable revenue. The ability to close and deploy an executable contract in the shortest timeframe possible is directly tied to a company’s profitability. Yet according to the Aberdeen Group’s “Contract Management in the Quote-to-Cash Cycle: Find the Lost Money” report, on average, 9% of revenue is leaked away during the quote-to-cash process.
Putting that into real dollars, if your company made $10 million in revenue last year – you just lost $900,000 somewhere along the way!! Where is that revenue going? And more importantly, how do you recapture it? You start by deploying an enterprise-wide contract management system.
By leveraging a systematic approach to the development, approval, and execution of sell-side contracts you can:
Recapture Lost Revenue
An enterprise-wide contract management system connects the various sell-side processes including pricing, proposal creation, negotiation, contract generation, approvals, and contract management – providing clear visibility into the entire process. Transparency helps eliminate any potential lost revenue due to maverick pricing, missed deadlines, unfavorable terms, compliance issues, transactional errors, etc.
Reduce Sales Cycle Time
According to the same Aberdeen study referenced above, “on average 18% of an enterprise’s sales cycle is attributed to contract creation, negotiation and approval.” An automated workflow streamlines the sales process from contract creation to contract close, resulting in reduced sales cycle time and faster close rates.
Negotiate from a Position of Strength
Knowing the company’s precise previous and current obligations with key customers gives your sales team leverage during negotiations.
Develop Contract Templates and Library of Approved Clauses
Providing the sales team with a central library of executable contract templates with pre-approved language allows you to keep a tighter rein on individual terms, conditions, and clauses. Additionally, a central contract library puts both sales and legal on the same page from the onset. Standardized sell-side contract creation allows you to close the contract in the shortest timeframe possible.