CLM (Contract Lifecycle Management) software is a technological solution especially known for streamlining, securing, and making all document processes in Legal departments more efficient. Yes, it is undoubtedly a godsend for lawyers, but not only for them.
It is important to make companies aware that Contract Lifecycle Management tools can also improve the performance and productivity of other departments. CLM software can be implemented with a cross-cutting approach and makes life much easier for anyone handling legal documents without the need for them to be contracts.
It is therefore advisable to open our minds and study the full range of possibilities that CLM solutions offer to functions such as Human Resources, Finance, Procurement and Marketing. And the sales department is no exception. Every little bit helps to improve the efficiency of negotiation processes and make them more attractive to customers.
The commercial department handles various types of legal documents daily that can be automated thanks to CLM technology so that they are integrated into the Contract Lifecycle Management workflow. And they are not few. These include confidentiality agreements, service proposals, multi-exclusive contracts, agreements with partners, purchase orders, documents in response to requests for proposals (RfP) and customer data (KYC).
Eight benefits of CLM software for sales departments
1. Accelerates contract processes
The contractual part is the most tedious and time-consuming part of a sales agreement. Even if the deal is closed by word of mouth or through an email, in the end the most important step is the signature that completes the process. And it is a long road to get there. A road that can be shortened by taking the shortcuts offered by Contract Lifecycle Management solutions.
Different people and departments can be involved in a sales agreement. CLM software is like the orchestra conductor that articulates and coordinates the whole process to speed it up and close it as soon as possible. At the same time, it eliminates the possibility of any human error and the conflicts that this causes. In short, it is like the engine that drives the company towards the final goal: sealing the deal.
2. CLM Offers a self-service contract platform
What does “self-service” mean in this context? Well, thanks to the CLM technology, employees in the commercial department no longer have to wait for the contract to be approved by the Legal department. This in itself is a giant step forward in the process and eliminates the usual bottlenecks that used to emerge due to overloaded lawyers.
By implementing Contract Lifecycle Management tools, the salespeople themselves can generate a service provision contract on their own without the need for the lawyers to validate it, as they have already done so beforehand before uploading the template used as a basis by the salesperson in question.
The impact is overwhelming: CLM solutions help create documents twenty times faster than in the traditional way and without any human error. The underlying principle is simple, but no less ingenious: Legal Affairs decentralizes this part of the document process to make the commercial department more agile and responsive.
3. Centralizes contract contents
It may sound contradictory to the previous point, but it is not. Although CLM solutions decentralize contract creation as we have just seen, they also ensure that the Legal department centralizes contents seamlessly and maintains control.
Legal documents are created, distributed, and stored from the CLM tool itself, which allows rigorously monitoring their versions and contents. This provides two immediate advantages: documents are free of errors caused by haste and manual intervention, and contract clauses are always updated according to the company’s criteria and current legislation.
4. Maximizes cross-departmental collaboration
Companies are living ecosystems and all their members are closely interrelated. Therefore, the commercial area is not isolated and does not live in a bubble but is in permanent contact with other departments of the company: among others, the sales department collaborates with Legal Affairs, Marketing and Finance in setting objectives, designing campaigns, and defining all kinds of strategic issues.
CLM software allows commercial department professionals to maintain greater control over the status of their operations and to collaborate more effectively with other internal and external stakeholders on legal issues.
5. CLM Makes a difference in customer-facing interactions
The sales department is the visible face of the company and has an added responsibility to get things right. It is in constant communication with potential customers who can choose from a plethora of service providers. Indeed, it is not easy to choose in such a competitive and sometimes saturated market.
CLM software makes a difference by adding value to the sales department’s proposals for services or collaboration, regardless of the industry. It speeds up and simplifies the negotiation process, which customers welcome.
6. Accelerates revenue generation
Contract Lifecycle Management solutions enable faster time to revenues because they make the contracting process clearer and more transparent. And that speeds up deal closing. CLM software provides valuable data that helps know where the deal stands and how it can be accelerated.
This technology not only shortens lead times, but also reduces paperwork and business cycles. From proposal to contract negotiation, this type of solution allows more deals to be sealed with less friction.
7. CLM Improves communication
Thanks to Contract Lifecycle Management platforms, the commercial department is up to date on all key aspects of its contract documents and processes, reducing the stress of not knowing where the contract stands. Transparency is essential and is in the DNA of CLM technology.
8. Integrates with the sales technology stack
CLM solutions are intuitive. They allow launching the contracting process, reviewing, or negotiating through the self-service portal mentioned above or through CRM and users’ favorite productivity applications.
Conclusion
Contract Lifecycle Management software is an extremely useful cross-cutting resource for commercial departments in all types of industries. It is so versatile that it is an invaluable ally for industries such as consumer goods, real estate, technology, consulting, pharmaceutical and medical products, and energy.
In all of them, legal documents are handled daily and having CLM solutions adds value to the commercial department, as it helps them reinforce their strategic position and prominence within the company.