Great! You are looking for a new Contract Lifecycle Management software to streamline & automate your contracting operations. However, evaluating the numerous tools can be a daunting task, especially in a crowded CLM market. Choosing the right CLM software can make implementation seamless and improve productivity while choosing the wrong one can leave a bad taste of legal tech.
What is contract lifecycle management software?
Contract lifecycle management (CLM) software is a type of software that automates and streamlines the management of contracts throughout their lifecycle, from creation to renewal or expiration. A CLM software typically provides tools for creating, negotiating, executing, and managing contracts, as well as tracking key milestones, deadlines, and obligations.
How to evaluate a CLM Software?
Choosing a Contract Lifecycle Management Software is a long-term investment requiring thorough research and understanding of the features of the CLM application. Picking the right CLM provider can improve stakeholder buy-in and ensure a smooth implementation process.
Here are some things to consider when choosing a CLM software –
Understand your current needs
The most important thing to know when attending a CLM demo is to understand why you are looking for a CLM tool and what problems you are trying to solve with this new application.
Are you looking for automated contract drafting? Do you want improved visibility into all your contracts? Are you struggling to track of all your contracts and stay on top of all renewals?
Understanding your current needs will help you effectively evaluate the CLM tool and explore the relevant features that will solve your biggest problems. Most AI Contract Management applications offer a variety of features, hence, properly understanding your needs will make the demo a smooth tailored experience that addresses your current pain points.
Features and Functionality:
Look at the software’s features and functionality to determine if it meets your organization’s specific needs. Some key features to consider include contract creation, tracking, and renewal, as well as the ability to set alerts and notifications for important contract dates and deadlines. Look for all the features that you would want in your CLM software and compare against a checklist if the tool meets all your requirements.
Support and Training:
Customer support and training ensure a smooth implementation and onboarding process. Poor customer support can cause unnecessary problems during implementation and cause more issues than solve any of your pain points. Ask for email and phone support as well as a dedicated account manager who is responsible for solving any of your issues.
Customer support representatives should be easily accessible during the support time to remove any bottlenecks and be at your service. Evaluate the vendor’s support and training offerings to ensure that you have the necessary resources to get up and running quickly. Look for software that offers comprehensive training and support, including webinars, online tutorials, and a robust knowledge base.
Security is one of the most important things to consider while evaluating a CLM tool as you will be uploading all your confidential contracts on this system. Consider the security measures in place to protect your sensitive contract data. Look for software that uses secure hosting, encryption, and multi-factor authentication to protect your data from unauthorized access. Check out the security certification awarded to the CLM provider and which companies have trusted them with their contracts.
Consider the software’s pricing structure, including any upfront fees, ongoing costs, and potential savings or ROI. Look for software that offers a transparent pricing structure and provides value for your money.
Ask your vendor for various pricing options based on the number of users, integrations & more. A good CLM vendor would be considerate of your budgeting constraints and tailor the pricing to meet your expectations.
In conclusion, choosing the right Contract Lifecycle Management (CLM) software is a critical decision for any organization. With the increasing complexity of contracts and regulations, manual contract management is becoming increasingly risky, time-consuming, and inefficient. CLM software offers a streamlined solution to manage contracts, mitigate risk, and optimize the contracting process.
Ultimately, the right CLM software will help your organization manage contracts more efficiently, mitigate risk, and optimize the contracting process, resulting in significant cost savings, increased revenue, and better business outcomes. Therefore, it’s worth taking the time to evaluate different CLM software options and select the one that best aligns with your organization’s goals and requirements.