“In many organizations, up to 25% of sales time is spent on contract-related issues,” states Tim Cummins on his blog Commitment Matters. Tim is president of the IACCM, a non-profit organization that’s become the global forum for innovation in trading relationships and practices.
This is astounding. As we emerge from a very deep recession (knock on wood as GDP came out positive this week), organizations around the world are struggling to do more with less and to close sales more quickly. How do you do this when 25% less time is spent selling or prospecting?
An alternative to the manual, slow and risky process of creating contracts and sales documents such as NDAs and proposals, is to use document assembly/contract automation software. These solutions allow sales reps to create structured, approved sales documents on the fly by answering questions in a browser. These systems can integrate into the CRM system so the sales rep doesn’t have to re-enter data and all contract data can go back into the system. This allows the company to also manage, analyze and report on these contracts.
Another interesting subject touched on by Cummins comes from a report by CSO Insights on Sales Compensation and Performance Management. It talks about how the recession has caused many sales reps to miss their quotas and to begin to push the boundaries of what is ethical. The report goes on to say that sales reps state that the biggest cause for losing business is the “competitor’s price and terms.”
And this brings us full circle back to contract automation. If you automate your sales contracts and capture the data, you can control what the rep can do with the Ts & Cs and give them some controlled flexibility to negotiate on their own as well. You can also risk- rank your contracts and start to compensate your reps not only on revenue but on the value of the underlying contract to your company.
Dow Jones & DLA Piper joined us for a webinar on this topic: "How sales teams can reduce the time and expense of closing deals by 50%" Download the recording now.