Top 10 Features to Look For in Contract Management Software

Effective contract management is no longer a nice-to-have but a strategic imperative. With organizations losing an estimated $2 trillion annually to poor contract management, selecting the right solution can significantly impact your bottom line.

Modern contract lifecycle management solutions go far beyond basic document storage, offering sophisticated capabilities that can transform contracts from administrative burdens into valuable strategic assets. But with numerous options available, how do you determine which features are most critical for your organization?

This comprehensive guide highlights the top 10 features to prioritize when evaluating contract management software in 2025, helping you make an informed decision that aligns with your organization’s specific needs.

1. AI-powered contract intelligence

Artificial intelligence has revolutionized contract management, transforming how organizations analyze, understand, and extract value from their agreements. Modern AI capabilities go well beyond basic document parsing, offering sophisticated analysis and insights that were previously impossible to achieve at scale.

According to the 2024 ACC Chief Legal Officers report, 45% of CLOs plan to invest in new technology solutions to boost operational efficiency this year—the highest figure since 2021. This surge demonstrates growing recognition of AI’s potential to streamline contract processes and reduce risks.

“By automating data entry, Concord has freed up an estimated 10 hours per week for Vecna Robotics’ team, enabling them to focus on higher-value activities,” explains Michael Bearman, Chief Legal & Safety Officer at Vecna Robotics.

Key AI capabilities to look for include:

• Automated data extraction: The ability to identify and extract key contract information such as parties, dates, values, and obligations without manual input
• Risk identification: Advanced algorithms that flag potential issues, non-standard language, or high-risk clauses
• Pattern recognition: Tools that identify trends across your contract portfolio to inform strategic decisions
• Language generation: Assistance with drafting and suggesting contract language based on your organization’s standards and preferences

While AI offers tremendous potential, it’s important to maintain appropriate human oversight. As Hannah Lane, Contract Specialist at Phia Group, notes: “I don’t trust AI for analyzing agreements.” This underscores the importance of selecting solutions that balance automation with expert review.

2. Centralized contract repository

A secure, centralized contract repository forms the foundation of effective contract management. Without this core capability, organizations struggle with fragmented information, limited visibility, and increased compliance risks.

According to research from Juro, nearly half (47%) of lawyers surveyed still use Google Drive as a contract storage solution, despite it not functioning as a proper contract repository. This highlights a significant opportunity for improvement in how organizations manage their agreements.

An effective contract repository should deliver:

• Comprehensive organization: Structured storage with folders, tags, and categories for easy navigation
• Robust search capabilities: Advanced search features that allow users to find specific contracts, clauses, or data points instantly
• Version control: Clear tracking of document versions throughout negotiations and amendments
• Permission-based access: Granular control over who can view, edit, or approve different contracts and data
• Cloud-based access: Secure, remote access to contracts from any location and device

Steve Storck, Purchasing Manager for Denison University’s Department of Business Services, highlights the impact of a centralized repository: “We’ve rolled out Concord across multiple departments. It’s made our departments so much more organized.”

3. Workflow automation and approvals

Manual approval processes create significant bottlenecks in contract management, delaying deal closures and frustrating stakeholders. Modern contract automation tools transform these processes with intelligent workflows that accelerate cycle times while maintaining proper oversight.

Julie Delayo, Executive Director for Sponsored Programs, Grants and Contracts at Pima Community College, emphasizes this benefit: “It gives us the ability to have those discussions right in the discussion tab. And it sends out emails so everybody stays in the loop.”

Effective workflow automation should include:

• Customizable approval chains: The ability to define sequential or parallel approval routes based on contract type, value, department, or other criteria
• Automated notifications: Proactive alerts that notify stakeholders when action is required
• Status tracking: Real-time visibility into where contracts stand in the approval process
• Electronic signatures: Integrated e-signature capabilities that eliminate paper-based signing processes
• Audit trails: Comprehensive records of all approval activities for compliance and transparency

Research from Gartner suggests that organizations with automated contract workflows can reduce approval cycle times by 50% or more, directly contributing to faster revenue realization and improved business agility.

4. Proactive renewal and obligation management

Missed renewals and overlooked obligations represent significant financial risks. According to industry research, 88% of organizations struggle with effective renewal management despite having contract management tools in place.

David Morgan, CFO at Loop Returns, succinctly describes a common challenge: “We’ve passed an auto-renewal cut-off date, and now we’re locked in.” This scenario, repeated across thousands of organizations, highlights the critical importance of proactive renewal management.

Key capabilities to evaluate include:

• Automated alerts: Configurable notifications for upcoming renewals, expirations, and other key dates
• Obligation tracking: Tools to identify, assign, and monitor contractual obligations
• Performance monitoring: Capabilities to track and report on contract performance metrics
• Calendar integration: Synchronization with business calendars to ensure visibility of important dates
• Escalation mechanisms: Processes to highlight urgent items requiring immediate attention

By implementing robust renewal management, organizations can avoid unexpected auto-renewals, negotiate more favorable terms, and ensure continuous service delivery.

5. Integration capabilities

In today’s interconnected business environment, standalone contract management tools deliver limited value. According to research from ContractLogix, seamless integration with core business systems is essential for maximizing the value of contract data.

As Christopher Tufts, FP&A Manager at Iterable, explains: “An integrated CLM is important so we can serve all our principal audiences from the same system.”

When evaluating integration capabilities, prioritize:

• CRM integration: Synchronization with customer relationship management systems to connect contracts with customer records
• ERP connectivity: Integration with enterprise resource planning platforms to align contracts with financial processes
• E-signature compatibility: Seamless connections with electronic signature solutions like DocuSign or Adobe Sign
• Procurement system integration: Links to procurement platforms to streamline vendor management
• API flexibility: Well-documented APIs that enable custom integrations with your unique technology stack

The most effective integrations provide bidirectional data flow, ensuring that contract information is consistent across all systems and eliminating the need for duplicate data entry.

6. Customization and flexibility

Every organization has unique contract management requirements, making customization capabilities essential. Sarah Eisenhauer, Director of Bids, Proposals, and Pricing at Follett School Solutions, highlights this importance: “The best part about Concord is it’s so flexible. So we didn’t have to go through a huge change in process.”

Key customization features to evaluate include:

• Configurable templates: The ability to create and manage contract templates that align with your organization’s standards
• Custom fields and metadata: Options to define unique data elements specific to your business needs
• Flexible workflows: Customizable approval processes that match your organizational structure
• User-defined dashboards: Personalized views that provide the most relevant information for different user roles
• Adaptable reporting: Tools to create custom reports based on your specific requirements

The right balance of standardization and flexibility ensures that your contract management software can adapt to your processes, rather than forcing your organization to change established workflows.

7. Robust security and compliance features

Contracts contain some of your organization’s most sensitive business information, making security and compliance capabilities non-negotiable in modern contract management platforms.

According to a Thomson Reuters study, data security concerns remain a top consideration when evaluating AI-powered contract solutions. This reflects the critical balance between innovation and protection that organizations must maintain.

Essential security and compliance features include:

• Role-based access controls: Granular permissions that limit access to sensitive contracts and data
• Data encryption: Protection for contracts both in transit and at rest
• Compliance certifications: Adherence to standards like SOC 2, ISO 27001, and GDPR
• Audit trails: Detailed activity logs for compliance and accountability
• Data retention policies: Configurable rules for document retention and disposal

Organizations in highly regulated industries like healthcare should pay particular attention to compliance features that address their specific regulatory requirements.

8. Reporting and analytics

Data-driven insights are transforming how organizations approach contract management, shifting from reactive document handling to proactive strategic analysis.

“Deepsights combines the power of artificial intelligence, data-driven insights with out-of-the-box, visual dashboards, delivering predictive analytics in real-time,” explains ContractPodAi, highlighting the growing importance of advanced analytics in contract management.

Key analytics capabilities to evaluate include:

• Pre-built dashboards: Ready-to-use visualizations that provide immediate insights into contract status, timelines, and risk
• Custom reporting: Tools to create tailored reports based on your specific business questions
• Performance metrics: Measurement of key contract performance indicators
• Risk analysis: Identification and quantification of contractual risks
• Trend identification: Recognition of patterns across your contract portfolio

Effective contract analytics transform raw data into actionable intelligence, helping organizations identify opportunities for cost savings, risk reduction, and process improvement.

9. User-friendly interface

Even the most powerful contract management solution will fail if users find it difficult or cumbersome to use. User experience plays a critical role in adoption and ultimately determines whether your investment delivers the expected returns.

According to research from Gartner, up to 50% of first-time CLM implementations fail to deliver expected benefits due to user adoption challenges and inadequate planning.

Key usability factors to consider include:

• Intuitive navigation: Clear, logical organization of features and information
• Minimal training requirements: Solutions that users can quickly learn and effectively utilize
• Mobile compatibility: Access to essential features from smartphones and tablets
• Consistent design: Uniform interface elements that facilitate familiarity
• Responsive performance: Quick loading and processing of contract data and documents

The most effective solutions balance powerful capabilities with straightforward user experiences, making contract management accessible to both legal and non-legal users.

10. Vendor support and implementation services

Selecting the right technology is only half the battle; successful implementation and ongoing support are equally critical for realizing the full value of your contract management investment.

Pepe Carr, General Counsel at Sand Technologies, emphasizes this point: “If your learning model can raise their hand and say, ‘I don’t know what this is, please take a look,’ then you are off to reduce legal headcount.” This highlights the importance of solutions that balance automation with appropriate support.

Key vendor support elements to evaluate include:

• Implementation methodology: A structured approach to system setup, configuration, and data migration
• Training resources: Comprehensive educational materials for administrators and end users
• Ongoing support: Accessible help via multiple channels (phone, email, chat) with reasonable response times
• Regular updates: Continuous platform improvements and feature enhancements
• Customer success programs: Proactive engagement to ensure you achieve your objectives

The best vendors function as strategic partners rather than mere software providers, helping you maximize the return on your technology investment.

Comparison table: Key features across top contract management platforms

Feature	Traditional CLM	Modern CLM	Advanced CLM
AI Capabilities	Basic document parsing	Automated data extraction and clause analysis	Predictive analytics and advanced risk assessment
Repository	Document storage with basic organization	Searchable database with version control	Intelligent organization with semantic understanding
Workflow	Linear approval chains	Configurable approval processes	Dynamic, context-aware workflows
Renewals	Calendar alerts	Automated notifications	Proactive recommendations with renewal intelligence
Integrations	Limited connectors	Standard integrations with major systems	Open API ecosystem with bidirectional data flow
Customization	Minimal configuration options	Templated customization	Fully adaptable to unique business processes
Security	Basic access controls	Role-based permissions and encryption	Advanced compliance features and threat protection
Analytics	Standard reports	Custom dashboards	Predictive insights and strategic intelligence
Usability	Complex interfaces	Intuitive design for legal users	Role-optimized experiences for all stakeholders
Support	Standard help desk	Implementation assistance	Strategic partnership and success planning

How to evaluate contract management software for your organization

Selecting the right contract management solution requires a structured approach that aligns technology capabilities with your organization’s specific needs. Consider these steps when conducting your evaluation:

1. Assess your current challenges: Identify specific pain points in your existing contract processes that technology could address
2. Define success criteria: Establish clear metrics for measuring the impact of your contract management implementation
3. Involve key stakeholders: Include representatives from legal, procurement, sales, finance, and IT in the evaluation process
4. Prioritize essential features: Determine which capabilities are must-haves versus nice-to-haves for your organization
5. Consider future needs: Evaluate how solutions can scale and adapt as your organization grows
6. Request demonstrations: See the software in action, preferably using your own contract scenarios
7. Check references: Speak with existing customers, particularly those in similar industries or with comparable requirements
8. Evaluate total cost: Consider all expenses, including implementation, training, and ongoing subscription fees
9. Assess integration requirements: Determine how the solution will connect with your existing technology ecosystem
10. Plan for implementation: Develop a realistic timeline and resource plan for deploying your selected solution

By following this structured approach, you can select a contract management platform that delivers immediate value while establishing a foundation for long-term success.

Conclusion: Transforming contract management from cost center to strategic advantage

The evolution from basic document management to strategic contract lifecycle management represents a significant opportunity for organizations across industries. By selecting a solution with the right features, businesses can transform contracts from administrative burdens into valuable strategic assets.

As you evaluate contract management platforms, focus on solutions that balance powerful capabilities with usability, security, and integration. The most effective implementations align technology with people and processes, ensuring that your investment delivers tangible business benefits.

Ready to explore how modern contract management software can transform your organization? Schedule a demo to discover how the right solution can help you reduce costs, accelerate deals, and gain valuable insights from your contract portfolio.

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About Concord

Concord empowers growing businesses to make smarter operational decisions by unlocking actionable insights from all their contracts using Agreement Intelligence. Trusted by over 1,500 companies and 1 million users worldwide, Concord enables people to swiftly sign agreements and easily access crucial business data.