Wikipedia defines efficiency as the “ability to avoid wasting materials, energy, effort, money and time doing something or in producing the desired result. In a more general sense, it is the ability to do things well, successfully, without a waste.”
In the world of business, attaining a high level of efficiency is nirvana. The idea of being efficient is a desirable trait that most want in their company. The end goal of every company should be to reduce wasting resources while optimizing everyone’s potential. This could help minimize costs and expenses and prevent laying off redundant employees.
Imagine you own a business and you see that a lot of aspects in your company aren’t working out in the grand scheme of things. Maybe you realize that 10% of the staff are redundant or that the vendors you have employed are not delivering on the agreed upon posts. Instead of earning you money, they are losing you the big bucks. Of course, you would immediately do something about it.
Valuable insights for you and your company
Having a Contract Management Software can easily tell you this and more. A Contract Management Software or CMS provides users with a comprehensive and clear vision of the company’s contracts.
This allows users to determine which ones are effective and which ones are not. These insights can help you take the necessary actions to minimize your company’s expenditures.
Digital Agencies are one of the sectors that have the most contracts. If you’re an owner or manager of a digital agency, ask yourself: how organized are your contracts? Can you easily locate the contracts and determine whether they’ve been followed?
A Contract Management Software automates your entire contract database with automation tools ready for you to filter each contract by duration, vendor, price, etc.
Easier and Faster transactions from anywhere in the world
Wouldn’t it be easier if you can just send over to your clients the contracts that needed to be signed? Even if they are overseas, as most clients of digital agencies are, you can have them sign it through an eSignature software which is stored in a secure cloud storage.
eSignatures are legally binding so you do not need to worry if it’s legitimate or not. A Contract Management Software monitors your contracts and guarantees that your agency gets the full value from all signed contracts.
Integrating a Contract Management Software is fast and easy. Depending on your current contract management process, the number of contracts you have, and the resources you can commit to the implementation phase, it can take only 4 – 12 weeks!
Monitor and track your performance
With a Contract Management Software, you can easily monitor and track your performance for each client. Were the agreed upon KPIs met? Are you happy with your ROI?
With loads of clients, it is not easy to track all the due dates, deadlines, renewals, and conditions that need to be met.
While most companies hire staff to track their contracts, that staff are still just human and thus has certain limitations.
You will need an entire department to fulfill what a Contract Management Software can provide. Human error is quite common, unlike a software that is 99% of the time infallible.
Save up to 9% of your annual revenue
Studies have shown that companies with poor to no contract management systems lose over 9% of their annual revenue due to inefficiency and unmet KPIs. I think it goes without saying that this is a huge amount that your company could’ve saved for future expansion and investment.
Make the calculations. How much do you think are you losing because of poor contract management? Is it under or over 9%?
Now maybe you’re thinking, what is a measly 9% going to do? I still have 91% anyway. However, if you think of it, in eleven years, you’d have lost almost one whole year of revenue. Without being properly optimized, a company will face difficulty growing.
No more missed deadlines and unmet terms
The biggest reason why most clients don’t renew their contracts with digital agencies is that the KPIs that were agreed upon were not met. This is usually unintended but rather, simply just slipped the mind on the part of the digital agency.
By automating all KPIs, you can track whether they have been met or not. Having a fully-functioning Contract Management Software ensures that you meet your clients’ expectations enough that they will decide to renew. This also reminds you of deadlines and when it is time for a renewal of contracts.
Digital agencies dealing with international clients will benefit the most from having a Contract Management Software. Not only does it ensure that all tasks are done, but it also allows your clients to sign documents over the internet — no need waiting for a long period of time for your contract to get shipped to your client and back.
If your company relies on contracts, then you should definitely invest in a Contract Management Software that will create unlimited opportunities for your company!