10 Reasons to Buy Contract Management Software in 2024

December 13, 2023 • Contract Management • 9 minutes

As we step into 2024, the way we manage contracts is changing dramatically – and staying ahead means adopting the right tools. Today, contract management software has become a must-have for lean legal teams looking to automate and organize contracts at scale.

In this article, we’ll dive into why contract lifecycle management (CLM) software is a game-changer for businesses of all sizes, helping them save time and money while safeguarding their compliance and security.

Let’s explore the top 10 reasons to make the switch to advanced contract management solutions this year.

Reason 1: Enhanced efficiency and cost savings

In 2024, cost-effectiveness has become more crucial than ever – and contract management software is a major help on that front. It speeds up everything from creating contracts to getting them signed. You won’t spend ages drafting documents, because the software automates many steps of this process. Plus, it keeps agreements moving quickly with automated approvals.

CLM software also sends reminders and deadline alerts, helping you avoid late payment fees and unplanned contract renewals. This means less time spent on tracking dates, less money lost on unnecessary expenses, and more resources to focus on your strategic objectives.

Reason 2: Improved contract accessibility and organization

Another huge benefit of contract management software is its ability to organize agreements so they’re easy to access. Instead of digging through filing cabinets or endless digital folders, you’ll be able to find all your contracts in one searchable location. This means you can find what you need in seconds, not hours – which is a lifesaver, especially for teams who work remotely.

With everything in one spot, tracking contract statuses, expiration dates, and contract renewal opportunities becomes a breeze. This is particularly handy for businesses with lots of contracts, or those growing quickly. CLM software keeps your online folders neat, tidy, and easy to search, no matter how big your business grows.

Reason 3: Advanced security features

Security is a top priority in 2024, and contract management software steps up to this challenge. CLM platforms come equipped with advanced security features to protect your sensitive contract data. For example, encryption and access controls are built into the software, to keep your contracts safe from unauthorized access or breaches.

This level of security is crucial, especially when dealing with confidential agreements or sensitive business information. The software ensures that only authorized personnel can view or edit contracts, maintaining the integrity and confidentiality of your business transactions – making sure your contracts are not just organized and accessible; they’re also securely guarded.

Reason 4: Compliance and risk management

In 2024, staying compliant with regulations and managing risks is more important than ever, and contract management software is a powerful ally in this area. The software helps ensure that your contracts are always in line with current laws and regulations, helping you avoid legal pitfalls and costly fines.

CLM software also shines when it comes to risk management. It can help you identify potential risks in contracts, like unfavorable terms or contract clauses that could lead to disputes. This proactive approach to risk management means you can address issues before they become problems, saving your business from potential legal headaches.

What’s more, the software keeps a record of all contract changes and communications, which is invaluable during audits or legal reviews. This comprehensive record-keeping will help you protect your business and stay ahead of contract risks.

Reason 5: Integration with other business tools

Another key advantage of contract management software is its ability to integrate seamlessly with other business tools. These integrations can be game-changers, providing a smooth flow of information between different business systems like customer relationship management (CRM) and enterprise resource planning (ERP) tools.

When your contract management software talks to your other business systems, data moves effortlessly between them. This means no more manual data entry or trying to make different systems work together. For example, customer details from your CRM system can automatically populate in new contracts, saving time and reducing errors.

Interconnected tools not only streamline workflows, but also help keep all your business goals aligned. And it leads to better decision-making, since it gives you a comprehensive overview of your contractual relationships and obligations.

Reason 6: Data-driven insights and analytics

Data is an essential part of strategic decision-making, especially in contract management. Contract management software helps you analyze contract performance, spot trends, and make more informed decisions – so you can turn contract data into actionable intelligence.

With analytics, you can track how different contracts contribute to your business, identify areas for improvement, and even forecast future outcomes. This kind of insight is invaluable for strategic planning and helps in negotiating better terms in future contracts.

Plus, the software’s ability to provide real-time data means you’re always working with the most current information. This real-time insight is crucial in a fast-paced business environment, where staying ahead often depends on having the latest data at your fingertips.

Reason 7: Scalability as your business grows

A standout feature of contract management software is its scalability, which makes it especially helpful for businesses experiencing rapid growth. As your business expands, so does the volume and complexity of your contracts. Your software can adapt to your growing needs, handling an increasing number of contracts without missing a beat.

Scalability is crucial for businesses looking to grow without being bogged down by administrative overhead. With scalable contract management software, you can manage more contracts efficiently, without the need to increase your administrative staff or resources every time your document load increases.

What’s more, scalability extends to the complexity of your contracts, too. Whether you’re dealing with simple agreements or intricate multi-party negotiations, your software will help keep the details consistent.

Reason 8: One-stop collaboration and communication

Effective collaboration and communication are vital for any business, and contract management software plays a crucial role in this area. This software facilitates better collaboration within teams and with external parties, streamlining the negotiation and contract execution processes.

With features like shared workspaces, comment threads, and real-time updates, your team members can collaborate on contracts no matter where they are. This is particularly beneficial for remote teams, or when working with external partners and clients. Everyone you invite can view and comment on a contract in real time, in the same online document.

Plus, many CLM platforms include notification systems, which can alert relevant team members about new changes, comments, or upcoming deadlines. This keeps everyone on the same page, and reduces the chances of miscommunication or oversight.

Reason 9: Cost savings today and in the long run

Investing in contract management software can lead to significant cost savings for your business, both immediately and over time. While there’s an upfront investment, the long-term financial benefits far outweigh the initial costs. This software streamlines contract processes, reducing the need for extensive manual labor and the associated costs.

First, automation reduces the time spent on contract creation, negotiation, and approval processes. This efficiency translates into labor cost savings, as your staff can focus on more strategic tasks rather than time-consuming administrative work.

Second, the software minimizes the risks of costly errors, such as missed deadlines or non-compliance with regulations. These errors can lead to financial penalties, disputes, or lost opportunities, all of which have a direct impact on your bottom line.

Additionally, with better contract management, your legal team can negotiate more favorable terms, avoid unnecessary renewals, and identify cost-saving opportunities within your contracts.

Reason 10: User-friendly features and customization

In 2024, contract management software has become user-friendly and highly customizable. This helps make sure that all team members, regardless of their technical expertise, can effectively use the software. User-friendly interfaces, intuitive navigation, and customizable dashboards make it easy for everyone to draft, sign, and find agreements.

Some CLM tools are also configurable to suit your business’s needs, offering customizable clause libraries and personalized approval processes. Plus, many contract management systems offer options for branding and personalization, allowing businesses to maintain their brand identity even in their contract negotiations and signing workflows.

The top five CLM software platforms in 2024

Today’s market is packed with contract management software options, each offering unique features and benefits –  along with different pricing structures, features, pros and cons.

Here’s an overview of the top five CLM platforms in 2024:

  1. IronClad
    • Pricing: Offers tailored pricing, mostly targeted at large enterprises
    • Features: Known for its robust workflow automation and integration capabilities
    • Pros: Highly customizable, strong legal framework, and excellent for complex workflows
    • Cons: May be overwhelming for smaller businesses with simpler needs
  2. PandaDoc
    • Pricing: $19 per month for individual users, or custom pricing for enterprise needs
    • Features: Strong in document management, electronic signatures, and template creation
    • Pros: User-friendly interface is great for sales and marketing teams
    • Cons: Less comprehensive in legal-specific features compared to some rivals
  3. LinkSquares
    • Pricing: Offers custom pricing for businesses of various sizes
    • Features: Excels in AI-powered analytics and contract data extraction
    • Pros: Great for data-driven businesses, with strong analytics and reporting tools
    • Cons: May require a learning curve to fully leverage its AI capabilities
  4. Icertis
    • Pricing: Provides custom price quotes, mostly focused on large enterprises
    • Features: Known for its extensive customization and scalability
    • Pros: Robust and scalable, ideal for large enterprises with complex needs
    • Cons: The cost and complexity might be prohibitive for smaller businesses
  5. Concord
    • Pricing: $17/user/month for Standard, or $49/month for Pro
    • Features: Strong in contract creation, negotiation, and management
    • Pros: End-to-end contract lifecycle management; deadline reporting; 5,000+ integrations
    • Cons: Advanced features can take some time to learn

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All these platforms have different strengths and areas of specialization, making them suitable for a variety of diverse needs. Whether you prioritize AI-driven analytics, user-friendly interfaces, or robust legal frameworks, you’ll find CLM software that fits the bill in 2024.

And whether you’re a small startup or a large enterprise, understanding your specific requirements and comparing these top options will guide you to the ideal solution – helping make sure your contract management is as effective and seamless as possible.

 

Manage your contracts effortlessly with Concord. 

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