7 KPIs To Evaluate Your Contract Management Software Effectiveness
Smart contract management software will help your business improve its agreement processes. However, some solutions are not as efficient or easy to use as others. To ensure that your contract lifecycle management software is effective, one can use seven key KPI of contract management to evaluate its performance.
7 KPIs to evaluate a CLM software effectiveness:
Team Evaluation of how effective the contract lifecycle management software is
One of the simplest ways to evaluate CLM software’s effectiveness is by having your team rate how effective they think it is. You can have them rate their performance and usability on a scale of one to ten, then average their responses.
The system allows you to look at your team’s opinions on how effective the contract management software is.
Do your partners find the software easy to use?
Another critical KPI for contract management is figuring out whether the online management software is easy for your partners to use. If the contract lifecycle management software is not convenient for your partners, your company’s productivity levels will suffer. You may have to try different software solutions until you find the perfect fit for your team.
Provider team response time
Is the team that runs the software company quick to respond to questions and concerns you bring to their attention? The contract lifecycle management software company’s customer service team must provide fast responses that fix any issues you may have. Otherwise, the wait times will degrade your contract lifecycle.
Contract-related risk score
Contract risks are typically scored on a scale of 1-5, with one being the lowest amount of risk and five the highest. You should measure risks such as missed deadlines, compliance failures, inefficient performance, and unsuccessful deal closures.
If you notice that your new contract management software solutions are not reducing risk scores, it may be time to test another service.
Frequency and significance of software updates
A contract lifecycle management software that has frequent updates to boost its service performance will prove to be beneficial to your agreement processes. Updates are essential to fix any bugs or performance issues in the online contract management software. Bugs may leave your contracts insecure or even slow down your lifecycles.
Companies typically implement contract management software solutions to shorten their agreement processes. If your contract lifecycle is not reduced with the CLM software, you may want to consider implementing a new service.
Quick deal closures are essential to your company’s productivity and partner relations. If cycles are not shortened, you may be wasting time and resources on the service.
Your contracts are generally met
The number of signed agreements must be significantly higher than the number of unsigned ones. Unclosed deals are a waste of effort and revenue, so it’s essential to limit them as much as possible. Keep an eye out for this KPI because effective contract lifecycle management software will limit your amount of unsigned contracts.
How to track them?
An efficient way to track KPI for contract management is to collect data about the automation system. To do this, gather ratings from your team about their satisfaction with the online contract management software and analytics on agreement effectiveness. It would help if you created charts and graphs containing statistics to see whether or not the system is improving your processes.
Final thoughts of KPI contract management
Manually tracking and managing agreements is an inefficient process that will lead to unnecessary lengths and wasted time in the contract cycle. If you wish to boost your company’s productivity levels, online contract management software is essential. Your business will save costs and time if it effectively utilizes a program by measuring its key performance indicators.
Key performance indicators are essential to track if you want to ensure that your CLM solutions are as effective as possible. Automated contract management software will reduce risks, ensure obligations are met, and reduce the time it takes to close deals.