If your sales team is taking hours to manage contracts and there are still a lot of mistakes in it, then you need to take immediate action. Failing to address this issue can decrease the productivity of your sales team as well as reduces the overall business revenue.
But don’t worry; you can avoid all these issues by simply integrating the Salesforce contract management software into your business. It automates the lengthy contract creation procedures so that your sales team can effectively create, view, approve, and collaborate on multiple contracts simultaneously.
Research shows that efficient contract development and management can increase the profitability of a business by as much as 9% of its annual profits.
So, in this article, we will discuss numerous benefits of contract management software that integrates with Salesforce and explore diverse industries that use this technology to streamline their contractual processes.
What is Salesforce?
Salesforce is a cloud-based customer relationship management platform that offers various tools to businesses of all sizes. These tools help them manage their sales, customer service, marketing, and other tasks. On top of that, it provides a centralized database to store customer data, accessible to different departments within an organization.
With core CRM capabilities, Salesforce features additional services, including analytics, collaboration, and productivity tools. It also integrates with other business applications allowing the management of multiple systems from one central platform.
What is Contract Management Salesforce Integration?
The Salesforce Contract Lifecycle Management (CLM) is a quote-to-cash system that handles a business’s whole contract creation and management process. It is built on the world’s leading CRM solution, which functions out of the cloud. While catering to modern businesses’ needs, it even has a mobile-compatible app that allows users to manage contracts on the go.
How Does Salesforce Contract Lifecycle Management Work?
A breakdown of CLM’s key stages is given below.
- Initiation – It includes requesting the formation of a brand-new contract or reviewing an existing one.
- Authoring – In this step, the stakeholders produce a written form of the contract’s terms and conditions. Pre-approved legal templates are used in this step to prevent human errors and improve compliance.
- Reviewing and negotiations – Both parties review the agreement and proceed with any negotiations. Contract management with Salesforce simplifies this stage by recording the history of all the changes and giving access to audit trails.
- Approving – The approval stage is based on workflows that ensure the contract is reviewed and approved promptly and efficiently. With CLM, it is possible to customize these workflows based on factors like contract type, location, total amount, risk, etc.
- Execution – Finally, the contract is executed with encrypted and secure e-signatures from both parties in agreement.
- On-going management – The deal does not end with finalizing a contract, as you have to ensure that the contract’s performance is up to the mark. It is possible to track it through Salesforce for contract management. Consequently, you can follow the milestones and obligations outlined in the contract.
- Amendment – There are multiple instances where it is necessary to change a few contract sections according to new regulations. With contract management software that integrates with Salesforce, it gets easier to track all modifications.
- Expiry and renewal – CLM software allows the legal team to know about contracts approaching their expiry date so they can be reviewed before the deadline.
Benefits of Contract Management with Salesforce
We have listed some benefits of streamlining your contractual affairs with Salesforce CLM integration.
A contract should be error-free, as a minor mistake can destroy your company’s years of reputation. Thus, automating the process with contract management Salesforce integration ensures top-notch accuracy in these sensitive affairs.
Reduced Contract Cycle Times
Lengthy contract initiation and approval process are major challenges business owners face, especially in today’s fast-paced world. Additionally, conventional methods take up to an entire month which might not sit right with clients seeking quick outcomes. However, Salesforce CLM reduces the turnaround time to the minimum and finishes the task in only a few minutes.
It is easier than ever to comply with your contracts with new legal regulations through contract management software Salesforce integration. It allows the detection of agreements that might get affected by the change, letting you modify them quickly.
Better Oversight Over the Sales and Contract Management Workflow
Salesforce contract lifecycle management improves transparency and organization of legal documents. It stores all contracts in a digital location for easier access. At the same time, business owners can also get updates on sales deals’ progress by which they can effectively track the record of every team member.
Improved Customer Satisfaction
Effective contractual management goes a long way in improving customer satisfaction. Contract management with Salesforce ensures all the data is complete and up-to-date, reducing the risk of disputes. As a result, it facilitates collaboration between organizations leading to more efficient legal dealings and ultimately improving customer satisfaction.
Industries that Benefit From Contract Management Salesforce Integration
Every industry can benefit from automated contract management Salesforce integration. Here are some prominent ones:
One specific aspect of Salesforce integrated CLM that can benefit the healthcare industry is its ability to ensure Health Insurance Portability and Accountability Act (HIPAA) compliance for contracts between the hospital and medical suppliers. The Health Insurance Portability and Accountability Act is a legal compulsion that protects the privacy of patient health information.
A manufacturing unit leverages the power of contract management with Salesforce to gain a deeper understanding of consumer behavior to drive growth. As a result, it can better analyze purchase patterns, volume, and other key metrics to make data-driven decisions for future sales.
HR and Recruitment
The members of the HR department can replace the traditional mailing method with Salesforce CLM’s e-signature to quicken the hiring procedure. It lets the new employees sign all the necessary agreements without wasting time. At the same time, a speedy procedure leaves a positive first impression on them.
Media and Entertainment
The production companies in the media industry have to hire multiple artists at once. Contract management software that integrates with Salesforce can help them maintain all the contracts simultaneously. At the same time, easy access to legal agreements can prevent conflicts between the opposite party, which are otherwise common in these settings.
Consulting firms with specialized fields have to manage multiple contracts simultaneously to ensure both parties understand the expected and provided services clearly. However, it can be a time-consuming and stressful task, and that’s where Salesforce contract management software helps this industry. With its ability to streamline contract processes, consultants can finally focus on other valuable tasks and increase productivity.
Contract management software by Salesforce is a critical tool for companies in various industries to manage their business contracts effectively. Some of the big names in the market that are utilizing this automated software include PayPal, American Express, Canon, Amazon Web Service, etc.
For rapidly expanding businesses, the automation of contract management tasks through Salesforce integration can lead to multiple benefits, including improved customer satisfaction and more efficient delivery of services. By streamlining these processes, businesses can focus on their core competencies and confidently drive growth.
Automating the contractual tasks with Salesforce contract management integration is a wise investment for business owners regardless of their industry. Streamlining the tasks can free up your sales team’s schedule, letting them focus better on selling and revenue generation.
Not just this, but other departments in your firm can also benefit from it. Legal team members can save time with the help of pre-approved templates, while finance workers can track payment milestones more accurately. Even the IT department can relax knowing all the legal documents are stored in an encrypted and secure location.
Olga V. Mack is Vice President at LexisNexis® and CEO of CounselLink® CLM, a next-gen contract management company that has pioneered digital negotiation technology.
An award-winning general counsel and operations professional, Olga embraces legal innovation and has dedicated her career to improving and shaping the future of law. She shares her views in her columns at Above the Law, Forbes, Bloomberg Law, Association of Corporate Counsel (ACC) Docket, and more.