4 Ways Sales Can Generate Value from a CLM (Contract Lifecycle Management)

Sales teams across industries are constantly striving to close high-value deals quickly while ensuring customer satisfaction for repeat business. However, the journey isn’t without obstacles—chiefly, the delays in closing sales contracts. On the other side, legal teams take their time reading, rephrasing, and reviewing contract clauses to ensure there are no risks, loopholes, or issues. This process is time-consuming, not just for new contracts, but also for renewals, leading to missed sales targets and lost opportunities.

While both sales and legal teams are simply doing their jobs, differences in priorities and speed often create friction. This Catch-22 situation can ultimately result in reduced revenue and profits. But the solution lies in adopting a dedicated Contract Lifecycle Management (CLM) system.

Let’s explore how an efficient CLM system can generate value for sales teams while still safeguarding the interests of the business.

Reconciling Sales and Legal Team Goals with CLM

One of the main sources of contention between sales and legal teams is speed. By accelerating the contract approval and renewal process, sales teams can meet their targets and improve two crucial sales metrics: customer acquisition and retention. This is just one of the many advantages of a CLM system. A well-implemented CLM can bridge the gap between sales and legal, aligning their goals and priorities. It can also significantly reduce the chances of human error and oversight, helping to prevent revenue leaks, reduce tail-spend, and avoid inadvertent losses. This is why businesses are increasingly investing in automated CLM solutions.

Challenges in Modern Contract Management

Contracts today are far more complex than they used to be. Gone are the days of simple contracts that only specified reorder levels and quantities. The rise of Just-in-Time (JIT) manufacturing and the lean supply chain model, coupled with global digitalization, has made contract management more intricate. Contracts now cover multiple aspects, spanning departments, internal and external teams, and various stakeholders. Compliance tracking, performance management, and other contract-related tasks are more challenging than ever before.

Moreover, lengthy, fragmented processes increase the probability of human error, which can have disastrous consequences for your business. Contract management in this new era demands a streamlined, digital-first approach to stay ahead.

A Case Study: Huntsman Corp.'s Success with CLM

Take the example of Huntsman Corporation, a well-known chemical manufacturer. The company was struggling with delayed contract approvals, leading to lost opportunities. An internal audit revealed that the delays were directly contributing to revenue loss due to the complexity and inefficiency of their contract processes. To solve this, Huntsman standardized and automated its global contracting process using technology, including mobile approvals. As a result, the company saw a 40% reduction in contract processing time and a quicker response to regulatory bodies like SOX (Sarbanes-Oxley) and SEC (Securities and Exchange Commission). Huntsman also gained greater visibility into the contract management process, enhancing stakeholder involvement and reducing bottlenecks.

How CLM Solutions Drive Value for Sales Teams

Huntsman’s success demonstrates how technology can speed up siloed processes, introduce transparency, and improve accountability. By identifying and resolving bottlenecks, CLM solutions reduce transition time and integrate key stakeholders into the process. Automation helps mitigate human error, while standardized clauses and terms streamline contract drafting and approval.

All these improvements lead to faster customer onboarding, quicker contract execution, fewer breaches, and the achievement of sales targets and deadlines. Ultimately, a well-implemented CLM system translates to higher sales, improved customer satisfaction, and increased revenue.

The Future of CLM: More than Just Sales

Streamlining contract management not only helps reconcile differences between sales and legal teams but also adds significant value to the entire business process. Imagine the potential of integrating loyal customers and supply chain partners into a single CLM system. The possibilities for efficiency and growth are limitless.

CLM systems are no longer just a tool for legal teams; they are essential for sales, operations, and overall business success. The future of business management lies in adopting comprehensive CLM solutions that drive efficiency, improve performance, and support strategic growth.

Conclusion

A Contract Lifecycle Management (CLM) system is more than just a legal tool—it’s an essential component for enhancing sales efficiency and boosting overall business performance. By bridging the gap between sales and legal teams, automating workflows, and improving transparency, CLM systems help accelerate contract processes, reduce errors, and ultimately generate greater value for the business. As businesses continue to evolve, investing in an automated CLM solution is no longer optional—it’s a critical step toward long-term success.