Contract automation

Why contract and quotation software belong together?

August 25, 2021

Many companies rely on CRM (Customer Relationship Management) systems to manage customer data. CPQ and contract management software (CLM) can usually access the data and also feed the completed contracts and documents back into the CRM.

Companies usually have different sales cycles, which can vary greatly depending on the framework conditions and the business model adopted. Sales cycles can quickly last several months. If these sales cycles are shortened, profitability and turnover figures can be increased quickly. Quotation software or CPQ software (Configure-Price-Quotation) can help to reduce the duration of these sales cycles by helping salespeople to create standardised and optimised quotation documents with just a few clicks.  

When used in conjunction with contract software, or contract lifecycle management (CLM) software, CPQ systems can lead your business to greater profitability and even shorter sales cycles. Here are a few reasons why .

Software makes your offers and contracts look professional - always

Creating and managing contracts is a process that requires time and care. Sometimes a flood of new business gets in the way of a careful contract process. The role of contract lifecycle management (CLM) software is to streamline the process of creating, drafting and managing your contracts based on professional templates and guidelines that have been carefully crafted and improved over time. Even if the telephone distracts your sales staff from carefully drafting and negotiating your contracts - we've got your back. 

Contracts created with top.legal always look perfect and match your corporate identity. A contract creation wizard ensures that only the clauses that fit the scenario are used. 

CPQ and CLM solutions ensure that sales only sell the products you actually have.

Conventional cash-to-quota methods often fail to ensure, and only at great expense, that your sales staff actually sell the products that your company actually offers. It is not uncommon for salespeople to sell the products they are most familiar with, even though they are no longer available. In addition, with a complex product and service offering, it is often the case that some products and ancillary products need to be sold together or cannot be sold together. When a complex pricing structure is brought into play, it is often difficult to link the right product with the right price.

Given the increasing complexity of the products and services to be sold, you can't really blame salespeople for losing track of which products to offer at which price. 

Contract and quotation systems can help to find one's way through the jungle of complexity. By creating product lists and corresponding services including unit prices directly in the software, individual errors can be reduced to a minimum. The salesperson simply has to select the product sold and the corresponding services and service parameters are automatically reflected in the contract or quotation document. Limits for discounting prices are of course also respected and do not need to be checked afterwards before the document is sent to the customer.  

With offer and contract software, offers and documents can be signed electronically in a legally secure way without any effort

While the creation of contracts can still be done within a few hours without software, waiting for your contracts to be signed can take several days, sometimes even weeks, depending on the number of signatories and compliance policies in the organisation. 

If, on the other hand, you use contract or quotation software, all parties concerned are regularly informed as soon as a new draft contract is available. The electronic signature embedded in the software and the contract documents then makes it possible for all parties to sign in good time without you having to write to the signatories individually by e-mail.

Contracts need to be renegotiated and reworded regularly - contract software can help.

During the contract process, there are often changes to the contract, sometimes due to simple rewording or substantial changes to some clauses. Typically, you would now have to open your Word document again and enter the changes and email the contract back to the client. The usual email ping-pong begins. 

With contract software, you can speed up the process substantially, as comments and amendments can be made directly on the same document. Recurring changes can be counteracted via alternative clauses right in the templates and explanations can be added. This way you always have a single source of truth and do not have to search for changes in emails or handwritten notes.

Contract software can help you with your renewals

Managing contract renewals can be a daunting task as you have to pick out deadlines from the contracts first, keep an eye on them regularly and then act on them accordingly. 

With contract software, you can set reminders directly during contract creation or negotiation. This keeps track of all deadlines. Once the deadline has arrived, you are conveniently reminded by email and the creation of the document needed for renewal is also just a click away.

How do CLM, CRM and CPQ software work together?

Many companies rely on CRM (Customer Relationship Management) systems to manage customer data. CPQ and contract management software (CLM) can usually access the data and also feed the completed contracts and documents back into the CRM. 

If companies do not want to use the quotation software that is often already integrated in the CRM system, the CPQ system takes over the quotation creation. The CLM system takes the parameters offered in the quotation software and connects to liability conditions, duration and other rights regulations. The created offers can also be integrated into the contract by means of a link. 

In principle, it is also possible to keep the business running without the software systems mentioned. However, there is a high probability that errors will creep into the offer and contract documents as demand increases. This often leads to frustration on the customer side and considerable legal risks can creep up on your own side. In addition, with better sales control over the document creation process, you leave sales potential lying in the street.

Feel free to contact us, experts in contract processes, and ask for a free DEMO. We will be happy to show you how offer and contract processes can be profitably optimised.

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Why contract and quotation software belong together?

Companies usually have different sales cycles, which can vary greatly depending on the framework conditions and the business model adopted. Sales cycles can quickly last several months. If these sales cycles are shortened, profitability and turnover figures can be increased quickly. Quotation software or CPQ software (Configure-Price-Quotation) can help to reduce the duration of these sales cycles by helping salespeople to create standardised and optimised quotation documents with just a few clicks.

Selected articles

The advantages and best practices of contract management software

Considering how much time and effort critical contracts require - from the timely involvement of all parties involved (internal as well as external) to the definition of the scope of the contract, the rights and obligations contained in the contract, deadlines and much more - the use of effective contract management can dramatically improve the performance of organisations.

5 reasons why contract management software is important

Well-implemented contract management software is also more likely to generate more business opportunities per year, as contracts are more likely to be signed and more frequently.

Contract management tools and processes: from Microsoft Excel to professional software

Many companies regularly ask themselves, where are our contracts and how are they stored? Regardless of the size and industry of the company, this seems to be a ubiquitous problem. A problem with often far-reaching consequences.

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