Sales is all about momentum. Delays in contract approvals not only frustrate sales teams but also have a tangible impact on revenue and client satisfaction. Our recent survey of 200 professionals revealed that 31.33% of businesses struggle with approval delays, underscoring a prevalent challenge in the sales process.
The impact of contract delays
- Missed opportunities
Extended contract cycles can result in potential clients seeking more agile competitors, leading to lost sales. According to the International Association for Contract and Commercial Management (IACCM), companies can reduce their contract processing costs by up to 30% by implementing contract automation. - Strained client relationships
Delays signal inefficiency, potentially diminishing client trust and satisfaction, which are crucial for long-term partnerships. A report by the Financial Times highlights how AI is removing legal obstacles that slow down business processes, emphasizing the importance of efficiency in client interactions. - Revenue leakage
Slow contract processes can defer revenue recognition, impacting financial forecasting and stability. Gartner’s research indicates that organizations leveraging Contract Lifecycle Management (CLM) solutions experience significant improvements in contract efficiency, directly affecting the bottom line.
Case studies highlighting success
- Beatly
Beatly, a leading influencer marketing platform, struggled with contract inefficiencies that slowed down their business operations. Before adopting Oneflow, Beatly used traditional methods that involved printing, scanning, and signing contracts—a time-consuming process prone to errors and delays. By switching to Oneflow, Beatly was able to reduce the time spent on contract administration and accelerate deal closures. The platform’s user-friendly interface and real-time tracking allowed their sales team to focus on building relationships and growing the business. - Breakit
Breakit, a Swedish digital media company, faced challenges with manual contract workflows that often resulted in missed deadlines and inefficient communication. By integrating Oneflow into their operations, Breakit transformed their contract processes. The platform enabled them to streamline approvals, collaborate in real-time, and eliminate the back-and-forth often associated with email-based negotiations. As a result, Breakit experienced faster contract turnaround times, improved client satisfaction, and greater operational efficiency.
Strategies for improvement
- Implement CLM solutions
Adopting a robust CLM system can streamline the entire contract process, from drafting to approval, minimizing delays. The Forrester Wave™ report on CLM highlights the critical capabilities of leading solutions, guiding organizations in selecting the right tools. - Standardize templates
Utilizing pre-approved contract templates reduces the need for extensive reviews, expediting the negotiation phase. Gartner’s insights into CLM emphasize the importance of standardization in improving contract turnaround times. - Enhance collaboration
Facilitate better communication between legal and sales teams to quickly address potential bottlenecks. The Financial Times discusses how AI is revolutionizing business processes with legal components, highlighting the role of technology in enhancing collaboration.
Read also: How Oneflow is a contract management platform for everyone?
Conclusion
Contract delays are a silent revenue killer, undermining sales efforts and financial performance. By embracing automation and modern contract management practices, organizations can accelerate sales cycles, enhance client satisfaction, and drive revenue growth.
The integration of advanced CLM systems not only mitigates risks associated with delays but also positions businesses to capitalize on opportunities swiftly and efficiently. Let these success stories from Beatly and Breakit inspire your own journey toward contract efficiency and sales team empowerment.
