Contract Management Software: The Complete Guide

Contract management software: a complete guide to help you choose the right tool for you

Written by
Adam Holmgren
Updated on
October 20, 2023
Reading time
20 min.

If you work in sales, you can’t avoid the age-old ‘ABC’ acronym:
Always Be Closing.

The thing is, you can’t always be closing deals when you have other stuff to do.

Activities like going back and forth with leads on contract terms, waiting for digital signatures, and filing important documents take up time.

A lot of time.

First, some reassurance:

You’re not alone.

According to research by SalesGig, salespeople spend just 2 hours a day actually selling.

So, what do they do with the rest of their time?

Well, it’s spent on all the things needed to get a deal over the line, like proposal prep, document gathering, and chasing signatures.

So, how do you cut out all those non-sales-related activities?

Simple:

Use contract management software.

Contract management software helps sales teams save time, meet their goals, and increase revenue by simplifying and automating these ‘in-between’ tasks.

New to contract management software?
Don’t worry, we’ve got you covered.

In this article, we’ll cover everything you need to know to help you decide if it’s right for you — and which type of platform you should choose.

Contents:

What is contract management software?

Contract management software is a tool used by sales teams to prepare, deliver and sign digital documents and legal agreements.

With a focus on the contract management process, the software ensures that documents like new contracts and proposals can be electronically delivered, reviewed, and signed by leads.

Contract management software is more than just e-signature software; the best tools will also help you manage the contract lifecycle, including contract execution, renewal, and expiration.

Who is contract management software for?

The typical use case for contract management software is sales teams, including:

However, they’re not the only people in your business who could – or should – be using contract management software.

Customer Success Managers

According to a recent LinkedIn survey, at least 78% of CSMs are now responsible for revenue retention and generation.

As a result of their role shifting, CSMs can often be involved with the renewal of the main contract as well as issuing further agreements during the customer relationship.

In-house legal team

If your company has an in-house lawyer – or even a whole team – they should also be involved in using contract management software.

This involvement from your legal team is most likely to happen during the ‘ negotiation and amendment of terms’ phase of the contract lifecycle.

Key features of contract management software

By now, you probably know that contract management software is something you’re going to be seriously considering for your business.

To help you in your thought process, we’ve outlined some of the key features you can expect to find in a contract management solution that will both meet you where your company is now and be able to scale alongside you as your company grows.

Proposal and contract builder – to help you and your team consistently produce great proposals, contracts, and documents that are accurate, typo-free, and 100% on brand every time.

E-signature – say goodbye to time-sucking delays when it comes to signing contracts and documents. Thanks to e-signature technology, prospects can become customers in real-time by signing digitally – reducing friction at the ‘close’ and reducing your sales cycle time as a result.

Tracking & analytics – the best contract management software platforms include tracking and analytics to help you see exactly what is happening with your prospects and documents.

CPQ pricing controls – Ensure everyone has the most up-to-date and accurate pricing information, which they can use automatically in proposals and contracts.

Why should you use contract management software?

A contract management solution modernizes traditional sales methods.

Here are five reasons why you should consider using one in your sales department.

1. Save time

A contract management solution can help you get a deal over the line with built-in approval workflows and automation.

2. Increase revenue

Estimations show that poor contract management costs businesses around 9% in lost revenue per year.

3. Easier admin and collaboration

Cloud-based solutions allow you to work with other sales managers and include version control.

4. Lower costs

Using software and automation at the contract stage can help reduce administrative costs related to contract management by up to 30%.

3 of the best contract management software tools

While there are many contract management providers, we wanted to save you some time by focusing on 3 of the best contract management software tools to consider.

1. GetAccept

GetAccept is Europe’s leading contract management software provider.

2. PandaDoc

PandaDoc offers a content management solution with an easy-to-use interface.

3. Proposify

Proposify promises to help sales teams produce high-quality proposal documents.

Compare contract management software
GetAccept PandaDoc Proposify
Proposal & contract management ✅ ✅ ✅
E-signatures ✅ ✅ ✅
Mutual action plans ✅ ❌ ❌
CPQ pricing controls ✅ ❌ ❌
Sales content management ✅ ❌ ❌
Tracking & analytics ✅ ✅ ✅
Pricing From $49/m From $49/m From $49/m
Avg. G2 rating 4.6 4.7 4.6

How to choose contract management software

By this point, you’re familiar with what contract management software is and how it can help – consider the following questions:

Contract management software that ticks all the boxes

What if you could combine proposal and contract management, e-signatures, and more all in one platform? With GetAccept, you can.

Conclusion

Contracts and proposals play an important role in the life of a sales professional. However, they are notorious for stalling deals and slowing down the sales process.

It’s a necessary evil – without them, you won’t close a deal. So, embrace the digital revolution and start using contract management software.

FAQs

Q: How much does contract management software cost?

A: For most people procuring software, this is often the million-dollar question. However, don’t worry, contract management software isn’t expensive.

Q: Why would companies use contract management software?

A: With few exceptions, almost every B2B company will be issuing and managing contracts.

Q: What is the difference between CRM and contract management software?

A: Contract management software is purpose-built to manage the entire contract lifecycle whereas a CRM helps keep track of your ongoing relationship with customers.

Q: Why do you need a contract management system?

A: If you want to do your best work, you need the right tools for the job.

Q: What are the advantages of contract management software?

A: It helps keep your contract workflows organized and under control, boosting efficiency and increasing profitability.