Whether you’re an avid film buff or a driven salesperson, you know exactly where the “always be closing” (ABC) line originates. Made famous by Alec Baldwin in Glengarry Glen Ross, this ABC mantra is designed to instill a sense of urgency to close new business at all times. This same motto also applies to the contract lifecycle management (CLM) world.
With the right CLM platforms in place, organizations can streamline the entire CLM process, which will accelerate the sales cycle and, of course, increase revenue and grow your business. Ultimately, the proper CLM processes will allow you to truly always be closing— and teams should approach the overall contract management process with that same level of urgency.
Still not convinced how the CLM process can form the backbone of the ABC mindset? Get ready to go from disbeliever into disbelief at the benefits you’ll experience.
1. Achieve Business Growth
It’s one thing to start a business and find initial success, or to take over an existing model and keep at stasis. It’s another feat entirely to sustain upward momentum and actually grow your organization over time. When it comes to revenue growth, however, businesses have several contract management obstacles to overcome. According to a Model N survey, 98% of executives say they face some sort of revenue management challenge. No, that wasn’t a typo…98% face revenue management challenges.
Revenue leakage is a thorn in many companies’ sides as it pertains to their CLM-related challenges. Without the right CLM platforms, businesses often fail to prevent this leakage because they miss key auto-renewal dates, fail to invoice the full value of the contract, or there are unexpected promotions or rebates that aren’t communicated effectively between teams. Minimizing revenue leakage isn’t only a must for corporate leadership, but also it’s a must for salespeople. If your sales team has complete visibility into their contracts, they can:
- Identify contracts nearing their expiration date to negotiate better terms and implement new pricing strategies to increase contract value.
- Avoid unnecessary rebates, promotions, or billing errors that negatively impact the contract value.
- Ensure no unauthorized changes occur to the original contract that may harm the contract’s value.
But there’s a much larger story to tell when it comes to improving your contract management than just eliminating revenue leakage. By having complete insight into your contracts, your organization can identify cross-selling opportunities, which are a salesperson’s dream scenarios.
Think about this for a second; it’s 5-25x more expensive to acquire a new customer than to retain an existing one. In fact, it’s far easier to sell to established customers; typical chances of selling to current customers are 60-70%, compared to just a 5-20% likelihood of catching a new client. Just think how happy your salespeople will be if they don’t have to bang the phones trying to hit quotas if they can sell to their existing client base?
With the right CLM software in their corner, your salespeople won’t have to worry about revenue leakage again. And you know what else? They’ll have an easy time identifying cross-sell opportunities to increase revenue from current customers to help grow your business. It’s a win-win.
2. Build a Happy, Successful, & Coordinated Team
The sales world is constantly changing. Salespeople come and go, making retention a must for any successful organization. The time and resources to recruit, interview, hire, and train can sink any company’s momentum if the sales team is a constantly revolving door. It’s necessary to ensure your salespeople are happy in their positions and are motivated to propagate your brand’s continued success.
The contract management process, when disorganized, can detract from your salespeople’s happiness. Some common pitfalls of ineffective CLM processes include an overall lack of communication, disorganization of contracts, poor tracking of renewals, inconsistent clause management, and inefficient technology–all of which impact the sales team directly.
What your organization needs is a CLM platform that integrates with your existing solutions to organize your data and enables cross-team collaboration and communication. Now, your sales team will be equipped to:
- Create contracts with pre-approved templates so that the legal team has less legwork to do to get the deal done and out the door.
- Receive alerts when their deals hit certain milestones (e.g., an executable document sent, and one party has signed the agreement).
- Facilitate more efficient redlining and approvals.
Some CLM software even integrates with customer relationship management (CRM) systems such as Salesforce. Just think: now your sales team can work directly out of the platforms they’re used to while still remaining in the loop on the legal progress of their deals. This is all made possible thanks to real-time data delivered by the CLM solution.
If you’re searching for ways to empower your sales team while also keeping your legal team happy, an advanced CLM platform will improve your department’s collaboration, streamline current contract management processes, and integrate with existing solutions. Combined, all of these benefits mean your teams and organization are set up for success and future business growth. What’s not to love?
3. Close Deals Quickly
Salespeople are creatures of habit. They’re always on the hunt trying to find and close new deals. This drive also translates into their eagerness to move as quickly as possible to find the next chase, so they want deals to close as fast as possible. With advanced CLM software in their corner and a more streamlined contract management process in place, their sales cycles are shortened, and your company realizes revenue faster. It’s a match made in heaven.
But this is a high-level overview of how your salespeople can close deals faster. You really want to know how this all works, right? In addition to the benefits we touched on above, some innovative CLM platforms also include artificial intelligence (AI) that enable salespeople to find relevant information far quicker than manual searches. This means teams don’t have to go digging to locate renewal dates or payment terms, as machine learning algorithms make easy work of such tasks.
Other hallmarks of new and improved CLM platforms include:
- Workflow improvements: AI can automate approval workflows, ensuring that contracts never stall or get lost in the shuffle.
- E-signature features: But be careful, as not all CLM software is the same, and some options charge by signature or number of users. Find a vendor that offers unlimited e-signatures so your organization can accelerate the sales cycle by making it easy for your clients to complete their contracts.
Rather than waiting 30-60 days to close a contract, what if you could cut that in half? Stop imagining and start executing by adopting your next CLM platform.
Empower Your Sales Team
Your sales team can be one of your organization’s greatest allies in the fight to increase revenue. But without the right support and tools, their effectiveness only goes so far; you need to equip them with advanced platforms that elevate their productivity to new heights. Salespeople should always be closing, just like your company should always be searching for ways to improve your business by finding ways to accelerate the sales cycle and realize revenue faster. Kill two birds with one stone by adopting the latest CLM platforms that the market has to offer.
Want to see how IntelAgree can help streamline your entire contract management process? Schedule a demo now to check it out!