Research by McKinsey revealed that about one-third of all tasks in two-thirds of jobs worldwide could easily be automated. As digitization takes over the world, it is no surprise that even the workflow in the legal industry is being redefined through automation.
Contract creation software is one tool that is gaining popularity, seeing as contracts are one of the most recurrent legal frameworks needed in almost every organization. They are required in multiple processes, from forming legal identities to drafting agreements with clients and vendors. The daily volume of routine contracts per organization can be huge. And manual operations may result in slow contract creation and inefficient management. About 46% of organizations today end up delaying worthwhile projects due to ineffective contract management.
Introducing automated systems for contract creation and management can protect your business from such inefficiencies and let you reap high returns on investment. Here are four key benefits of contract automation:
An average U.S.-based corporation will likely spend about $8 billion to manage paper every year. As you switch to an automated contract creation system, you can cut down greatly on your paper cost. Furthermore, your labor costs are reduced as software automates the processes that take up the greatest portion of your employees’ time, reducing their working hours.
2. Better Customer Experience
A survey conducted in 2018 concluded that 80% of customers believe that their customer experience with a company is as important as their services or products. Automated contract creation will push customers past the waiting line and allow you to respond promptly to increasing demand. In addition, the elimination of manual processes like printing, signing, editing, scanning, or mailing contracts through automation allows your business to handle multiple contract processes simultaneously and decrease the waiting time of legalities for clients.
3. Reduced Chance of Errors
One of the major advantages of using software for creating contracts is reducing the chances of automated processes’ mistakes. If the process is set up correctly, an automated workflow run by software does not make as many mistakes. Visibility overall aspects and functions of contract management become more accessible. Contract creation software will also eliminate lapses in your renewals, call your attention to remaining contracts, create uniformity in pricing of contract making, and eventually improve your brand image among high-paying clients.
4. Shorter Time-to-Revenue
Revenue will always be your most sought-after and reliable metric for measuring the productivity and success of your business. Contract automation will eventually facilitate revenue and scale your business by catering quickly to clients and expanding the client base.
As your business processes get automated, you will probably never miss your deadlines regarding contracts and legal issues or risk a client’s trust. Furthermore, you will be much faster at fulfilling your agreements, significantly decreasing your time-to-revenue as your client base expands.
When every process of contract making and management is automated, businesses can create contracts and manage their records cost-effectively. In addition, contract automation software will help your business securely keep and organize data, including clients’ valuable information, business performance, and much more. It will allow you to store and access data centrally and help you evaluate the progress of your business against set goals. Contract automation will always help your business function as efficiently as possible.