How to Manage Revenue through Sales Contract Automation
Marc Benioff, CEO of Salesforce.com, has a new book called Behind the Cloud- the untold story of how salesforce.com went from idea to billion-dollar company and revolutionized an industry. If you are interested in how to grow a business, CRM, or SaaS, the book is worth reading. If you read carefully you’ll see how Marc talks about the exact problem that document assembly can help solve.
Companies with fast growth, complex products or complex contracts have trouble closing deals quickly. Perhaps just as challenging, is enforcing consistency in contracts to ensure compliance, reduce risk, and dictate how the company can recognize revenue. Benioff says,
“Our sales team was selling to the customer constantly. Because we were continually adding new users or innovating new products, it had become common to renegotiate the contracts and create new ones. That turned into an organizational nightmare for managing revenue, and the ambiguity that came from renegotiating made us susceptible to risk. We needed to find a way to define everything up front and standardize the way we did sales contracts. We had to negotiate all the future possibilities ahead of time to guarantee that we got the best terms. . .we instituted a series of processes, practices, and programs to help make us more systematic in the way we approached a number of issues. For example, our legal team began to monitor the acceptable degree of risk in customer contracts.”
With Document Assembly, you can create templates that contemplate all of your business issues and include approved negotiated fallbacks. By automating your contracts, you can dramatically speed up sales contracting and enforce standards, as well as scoring and guiding the acceptable risk in each contract.
Have you reduced the risk in your sales contracts? Please tell us how in the comments below.