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How Inefficient Contracts Impact Your Sales Cycle

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Is your business not moving forward or reaching your goals? Well, now is the time to reevaluate your sales strategy. 

The sales team is crucial to any business whether you’re a small to large business size. They can help bring your company prospects and increase your revenue. You need the sales team to make an impact on your brand reputation and nourish customers for stronger relationships. 

What is a Sales Cycle?

First of all, before we discuss how inefficient contracts impact your sales cycle. We want you to have a better understanding of what exactly is a sales cycle and how you can benefit from a contract management software. They are both needed for your business to reach and set future goals. 

A sales cycle consists of seven stages they are:

  1. Find leads
  2. Connect with leads
  3. Qualify leads
  4. Present to prospects
  5. Overcome objections
  6. Close the deal
  7. Nurture new customers

Accomplishing each step helps you see what works and doesn’t work with your sales strategy. Your sales team may take longer to complete a step, but that is okay as it differs from company to company. But by doing the steps you can find out why it takes you longer to close a deal or where you tend to lose clients. 

Why does a sales team need a contract management software?

A sales team focuses on data and analytics. That’s where contract management software comes in. With this software you can measure, repeat and see visibilye sales contract management processes. 

The main focus for your sales strategy is that you can complete the sales cycle and in the future improve your techniques. A contact management software can help you generate terms and conditions, negotiate these terms, get approval from necessary parties, sign and execute, and renew or terminate contracts. 

A sales contract management software, helps detect, analyze and polish your processes. 

Benefits of Contract Management for Sales Team

If you’ve exhausted all your options when it comes to your sales team strategy. Fret not, for there are many benefits for a sales contract management software. 

Here they are listed below:

Bigger Revenue

We are in the digital era, and your prospects will surely have a laptop. This means there will be faster contract signing unlike before it was weeks because it was on paper. Now that everything can be accessed on your device, you will be skipping a few steps like printing and getting them to your prospects. Today just just click one button and it’s with the prospect right away. 

Saves Money

When you use a contract management software you can easily edit and polish the contract. There are many spell checking or grammar tools that can smoothen out your contracts before it’s sent. This prevents delays and mistakes that would usually cost your business money. Now the process of creating and sending a contract is much faster than before, you’ll have prospects signing deals in no time. 

Collaboration

Say goodbye to misunderstandings! It is so much easier to communicate with your team and prospects with the various means of collaboration. Contract approvals are faster because there is clear communication between all parties, employees can spend less time on administrative tasks and focus more on their goals, and then everyone involved has access to the same information so there will be less confusion. 

Saves Time

Contract management software helps compile and organize all your contracts so you don’t have to. You don’t have to file or search through piles of papers as so much softwares makes it easier for you to search for what you’re looking for. There is even analytics to show the data of your contracts. You will find other advanced features in modern contract management softwarese that are available in the market today. 

What are the Contract Management Risks?

Yes, contract management softwares is quick and easy to use. But you must still be careful. Of course, there are still risks when it comes to using this softwares for your contracts. Don’t forget you are dealing with private information and details after all. 

Security Risks

One of the main risks is security risks. You must be extremely careful when it comes to sharing and keeping files. You could get hacked or information could be put in the wrong hands. 

Legal Risks

Even though the contract is not on paper, there will always be legal risks because it is a legal document. But the legal risks are different from the paper contracts such as missing contract regulations and compliance requirements. 

Financial Risks 

Mistakes are made even on digital contracts. You may experience missed Milestones, claims, warrant problems, or missed delivery. These mistakes can lead to loss of trust by the prospect, loss of money to fix the problems, and so on. Financial risk is bad for any company, so it is always important that even if you use software to double-check everything. 

Conclusion

Before you start using a sales contract management software make sure you assess it and understand how it aligns with your company’s goals. The software should make each sale cycle stage easier for you to manage and work with. 

There may be many benefits of contract software for your company but you should still have awareness of what the risks are and how inefficient contracts can impact your cycle. 

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