Why every business should start using digital signatures?

Wondering when to use a digital signature? Wonder no more. We’re here to help. Whether you’re getting a prospect to sign a contract, renewing something, or signing up for that gym membership, we’re here to offer a little advice. The short answer is: you can use a digital signature whenever the opportunity presents itself. But let’s dig a little deeper into that.

In this article, we’ll cover:

1. When to use a digital signature with a B2B prospect
2. Using a digital signature with a B2C customer
3. Being the customer using a digital signature

1. When to use a digital signature with a B2B prospect

This one is sort of location-variable, but knowing when to use a digital signature with a B2B prospect is important. After all, you’ve spent time negotiating a contract and have got all the way to closing. 

The good news is that great contract management software comes with different ways of making your digital mark. These ways are often as valid as your wet signature. 

Some super common ways of leaving your digital signature include:

1. Verification codes – A verification code is either emailed or sent via SMS. Once it arrives, all the prospect has to do is type it into the signing field. Voila, it’s signed.
2. Clicking a button – All a prospect has to do is confirm that they’ve read the contract, then click on a button that says something like, “Sign now” or “Sign here”. We often encounter these types of contracts when clicking “I agree” on those terms and conditions that we definitely always read. 
3. Use a handwriting feature – This one allows the prospect to draw their signature on a digital canvas. It can also work by letting the prospect type their name into a field, which is then converted into a calligraphic font.
4. Type your name on the dotted line – The old-fashioned but time-tested method, all your prospect has to do here is simply type their name on a dotted line at the bottom of the contract. Then you’re all good to go.

Great contract management software also comes with another added benefit: chronological signing order. This means that, if you have multiple stakeholders, you can ensure that they sign your contract in the order you need them to.

Read also: Contract automation: A complete guide

2. Using a digital signature with a B2C customer

In some countries, it’s super common to scrawl on a B2C contract using a tablet. In others, customers are often presented with paper contracts. Either way, that final sign on the dotted line means that you’ve got yourself a new customer. But just when can you use a digital signature when it comes to B2C contracts? 

The possibilities are endless, but here are just a few examples:

1. Signing that gym contract
2. Getting a mortgage on your first home, or the rental agreement on that apartment in a great location
3. Buying your dream car
4. Signing for that unicorn cheap electricity deal
5. Getting that flashy new phone

But, of course, when dealing with the public, a smooth experience is essential. So it’s important to have great contract management software that facilitates this. But once you have the right contract management software for your business set up, you can have all your customers signing digitally in no time. 

Of course, it’s important to check whether or not electronic signatures are valid where you are. It’s a key part of knowing when to use digital signatures. 

3. Being a customer using a digital signature

It’s also good to know when to use a digital signature as a customer. That way, when it comes to actually signing, you can ensure that you know what you’re doing. You’ll look like a digital native in front of any and all salespeople.

That’s why it’s important to reiterate the signing methods we talked about earlier in this article:

1. Verification codes – A verification code is either emailed or sent via SMS. Once it arrives, all the prospect has to do is type it into the signing field. Voila, it’s signed.
2. Clicking a button – All a prospect has to do is confirm that they’ve read the contract, then click on a button that says something like, “Sign now” or “Sign here”. We often encounter these types of contracts when clicking “I agree” on those terms and conditions that we definitely always read. 
3. Use a handwriting feature – This one allows the prospect to draw their signature on a digital canvas. It can also work by letting the prospect type their name into a field, which is then converted into a calligraphic font.
4. Type your name on the dotted line – The old-fashioned but time-tested method, all your prospect has to do here is simply type their name on a dotted line at the bottom of the contract. Then you’re all good to go.

Chances are you’ve already encountered some, if not all, of these. But it never hurts to refresh the basics.

Read also: How to do your signature

The Key Takeaways

When it comes to digital contracts, the possibilities are limitless. But it’s knowing when to use a digital signature that counts. If you’re in B2B, you can use great contract management software to get that all-important close. Whether you’re using verification codes, a signing button, a handwriting feature, or a typed name to close your deal, you can be sure that your digital signature will get the job done.

Equally, if you’re in B2C, you can use digital signatures to cut down on admin tasks, and get faster, more immediate signings. The same goes if you’re a B2C customer. It all starts with the right contract management software.