5 Benefits of Using Salesforce for Contracts Management
Sales are the lifeblood of your business. The longer the sales cycle takes, the slower revenues are realized. Salesforce for contracts management can help you make contracting – an essential part of the sales process – a lot simpler.
Contracts play a vital role in customer relationships, as they are records of commitments. They help your business remain compliant, mitigate risks, prevent conflicts, and be more operationally efficient.
Through the years, Salesforce contract management has been one of the top industry solutions to ensure businesses avoid the common pitfalls in contract lifecycle management.
Most Common Contract Management Challenges That Businesses Face Today
In the wake of the COVID-19 pandemic, businesses realized the weaknesses in their contract management processes and systems. With staff working remotely and supply chains disrupted, the need for a more reliable contract management solution was placed in the spotlight.
Some of the most pressing contract management challenges today include the following:
- Remote access to pending and existing contracts: Contract organization is still undoubtedly a paper-heavy process, and organizations that are not technology-capable struggle to cope.
- Lack of communication: Collaboration between your team members– sales, legal, and others – is crucial for completing the contract lifecycle as quickly as possible. Without a proper contract management system, the contract can slip through the cracks as it goes from drafting to approval.
- Missing contract deadlines: Whether handling a new contract or renewing one, organizations without a proper system and set of tools can easily miss deadlines.
- Management of contract risks: If you manage hundreds of contracts, handling post-signature risks can be a challenge. This refers to missed auto-renewals or agreements ending without you realizing it, which exposes your company to potential financial risks.
To address these common pitfalls in the contract lifecycle, it is not enough to focus on handling records or archives, monitoring email threads, or documenting different undertakings when handling a contract. You need to streamline the process and find a solution such as Salesforce contracts management tools to automate as much as possible and mitigate contract risk.
5 Ways Salesforce Contracts Management Can Bring Your Business to New Heights
With the evolving business environment brought about by global events and the advancement of technology, a recent survey revealed that two-thirds of procurement organizations are exerting efforts to improve contracting. Seven out of ten businesses invest in contract management capabilities as they gear toward automation and digitization.
The same study points out how contract management is undergoing a major advancement, with technology adoption and improvements on the rise.
Finding the best contract management solution for your business can bring about many benefits. Below are some benefits of Salesforce contract management that go beyond organizing your repository of contracts.
1. Quick Contract Creation and Approval
Following negotiations, a deal moves into the contract stage. Typically, the contract creation process begins with a request from the sales team to your legal department through an exchange of emails. With the best contract management tools, you can avoid congestion in the sales process.
Automating this step with contract management software allows you to skip the manual process of contract creation. This saves time and costs for your company. According to research, on top of the thousands of dollars of spending to create a contract, ineffective contract management costs businesses 9.2% of their annual revenue.
2. Improves Contract Organization and Collaboration Process
Contract management software not only streamlines your contract processes but also makes it easier for your team to work together, even from different locations. Everyone will be on the same page with easy access to agreements with all of your vendors, suppliers, or contractors. Real-time contract updates can be done as necessary when circumstances change.
Aside from automating contract creation, industry solutions for contract management can also automate reminders and alerts, so you do not miss renewals and remain compliant with your commitments with other parties. This lowers the financial risk for your organization, and above all helps you maintain a healthy working relationship with stakeholders.
3. Drives Revenue and Profits Up
The revenue of your company is the oil that keeps the machine running. It pays for the salary of your team and takes care of other overhead costs. Good contract management using the latest solutions can help improve your revenue and profits.
With a contract management solution, your pricing will not be tied to your existing contracts. It can help you avoid neglecting or delaying price escalation that can drive revenue growth during the life of a contract. Research shows that proper handling of contracts can boost the profitability of a company by 10%.
4. Contributes to Client Satisfaction and Retention
A study highlights that loyal customers can be worth 10 times as much as their first purchase with you. It also emphasizes that acquiring new customers can be seven times more expensive than keeping your existing ones.
Smooth contract lifecycle management contributes to customer satisfaction and retention. The Salesforce contracts management solution can help you gain insights on what works with your customer base – this way, you can keep them happy and encourage them to renew their contracts with you.
5. Empowers Your Staff
With the powerful features of contract management software, the complicated contract process can be less of a headache for your team. A good solution can help free up time for your sales, legal, and other members of your organization. This way, they can focus on more meaningful initiatives that can help drive growth for your brand.
Contracts are one of your company’s most valuable economic assets. You need the best contract management solution to help you make the most of the potential of your contracts. Make sure you find one that is easy to use and integrates with your existing tools or applications. Explore your choices and pick one that has the best features and functionality to meet your needs and budget.
Rainmaker Provides Contract Management Solutions That Meet Your Needs
The Salesforce contract management solution is a robust tool that can help you understand the needs of your customers and meet those needs. Aside from optimizing your quote-to-cash process, it also helps improve the whole client experience.
If you are looking to innovate your processes, Rainmaker can help you leverage the powerful Salesforce platform. Contact us today.