An automated configure, price, quote (CPQ) system arms sales teams with the tools they need to sell faster and provide optimal customer experience. With CPQ, they can quickly and easily provide accurate quotes to customers, avoiding the time-consuming and error-prone process of sifting through multiple spreadsheets.
But the final stage of the sales process also benefits from automation: the contract. The pace of business is faster than ever, and any delays in the contract process can stall a deal. Automated contract lifecycle management ensures sales reps don’t get bogged down in legal steps.
Increasing numbers of companies view contract lifecycle management as more than just a record-keeping system, and are pairing CLM software with their CPQ system to help them realize their revenue goals.
Here are five reasons you need CLM with your CPQ.
1. Close deals faster
With manual contract processes, sales reps are often forced to navigate a complex legal gauntlet. In that time, they run the risk of losing the deal as customers become frustrated or lose interest.
Automated processes ensure a smooth and speedy contract process. Sales reps can easily create contracts using self-service wizards and templates, or import third-party contracts. With hosted CLM, they can negotiate contracts by using a pre-approved clause library and a collaborative workspace enables real-time tracking of all redlines plus version control. Approval escalation is automated.
A CLM solution that supports parallel contract workflows in the cloud further streamlines and speeds the contract process by allowing multiple approvers to review contract simultaneously. Salespeople can negotiate contract terms while the customer is redlining with his or her legal team, ensuring there are no holdups.
2. Never miss a renewal
With a CPQ and CLM combination, sales reps can receive advance email notifications of contract milestones, renewals, and expiration dates. Renewal and upsell information is at their fingertips. This enables them to take action to ensure contracts are renewed and follow up on upsell suggestions provided by an AI-enabled CPQ. Reps make more sales, generating more revenue for the business.
3. Improve the sales experience
When sales reps have to spend a lot of time on the manual process of preparing proposals and contracts for customers, it means less time selling. CLM with CPQ enables them to speed the entire sales process from the quote to closing the deal with a signed contract. It gives reps a streamlined and easier way to interact with legal teams and the deal desk. They can focus on selling and driving more revenue.
4. Better customer experience
When sales reps can provide fast, accurate quotes and quickly execute the contract process, customers enjoy a better experience. Without an automated experience, negotiating terms can also be time consuming and contentious, which can sour a customer on a vendor. New tools allow online negotiation to speed the whole process and work through snags with a minimum of misunderstandings. After all, time is of the essence for every business in today’s hyper-competitive market. With an automated CLM solution, customers can easily review the contract, comment, and make any necessary redlines in a highly secure portal.
5. Increase overall efficiency
A CPQ and CLM combination also helps business units outside of sales. For example, having a central source of pre-approved clauses reducing the amount of time the legal team has to get involved in certain aspects of the contract process.
Storing contracts in a single online repository provides full visibility and version control. There’s no need to use multiple applications to manage creation, negotiation, and archival of agreements.
Find out more about how an automated CLM solution can help your business reach its revenue goals.