How Online Negotiation Platform can Boost Your Business Agreements
Negotiation is a crucial stage in contracting. The offline method that many companies still use is time-consuming and often leads to subpar agreement terms. When you implement an online negotiation platform, your agreements will be taken to the next level, allowing your business to meet today’s demands.
Negotiating in a virtual world
Moving the bargaining terms and conditions online allows companies to complete the process much faster than traditional negotiation, which can take months before an agreement is met. Using negotiation software tools, modern, rapidly developing companies can close deals at a pace that doesn’t halt growth.
Digital negotiation vs. offline negotiation
Before the internet, the process involved meeting face to face and mailing physical documents back and forth. This process often took months for both parties to reach favorable terms.
Now, in the times of virtual negotiation, it’s essential to know its differences from traditional methods.
Physical vs. Remote
The primary difference is that traditional methods rely on in-person communication, whereas online negotiation is done 100% remotely. There are some pros and cons to each practice. For example, you can’t rely on visual cues and body language when interacting online. However, you don’t have to schedule to meet with the other party.
Redlining and editing
Offline redlining is done with a hard copy of the agreement and a red pen. The parties send the document back and forth with things crossed out until they reach acceptable terms. An online negotiation platform enables digital editing, allowing every party to make adjustments and track changes on the same version.
Difference in costs
The traditional method requires paper, printer ink, postage stamps, and other office supplies. These may seem like small expenses, but they add up. When you purchase a digital contract negotiation platform, you only have to pay upfront for the software.
Challenges of online negotiation
There are a few challenges that you will have to overcome when implementing a virtual negotiation service. These potential issues are essential for you to keep in mind before switching from the traditional method.
Increased misinterpretation
Sarcasm and emotion are often lost over text, meaning that it’s easy to take things the wrong way. And since you can’t rely on non-verbal cues, even expert bargainers have difficulty negotiating online.
Technical difficulties
If your system crashes or you lack internet access, you can’t use your online negotiation platform until everything’s up and running again. This may pose a challenge to companies that use older computer models or don’t have reliable internet.
Learning a new system
There’s always a learning curve when you integrate a new business solution into your operation. It might take some members of your team a while to adjust to the new form of negotiating agreements, or those who aren’t technologically advanced may prefer the old method.
Advantages of online negotiation
Despite the challenges that come with negotiating virtually, the benefits far outweigh any difficulties your company might face.
Virtual redlining
Contract management platforms make it easy to amend documents and track changes. The software ensures that all stakeholders have access to the same document, edits are tracked in real-time, and contract documents are securely stored in one place. Plus, by eliminating the chance of stakeholders redlining different versions of the agreement, you won’t have to go back and attempt to mesh the versions together.
Effective digital collaboration
Agreements often require different departments to work together to close a deal that meets your organization’s goal. Negotiation tools foster active collaboration, allowing your team to work together efficiently. Using these tools, every party can see interactions between members, actions taken by other stakeholders, and comments on the document. That way, everyone’s kept in the loop.
Activity feed
Technology-based management tools show the history of changes, reviews, comments, and approval. This will help your team streamline its negotiations by understanding your business’s contract process. You can identify bottlenecks and any areas that need improvement, allowing you to speed up your contract life cycles.
How to negotiate online
There are a few different ways to negotiate online. It’s important to consider each method and choose the one that works best for your team.
Email involves parties sending files and messages to one another until they reach an agreement. However, this method lacks sensory cues to tell how the other party feels. Furthermore, it’s easy for emails to get overlooked in inboxes, and you have the issue of editing different versions.
Video-call
Videoconferencing adds many of the cues back into the equation, making it a much richer platform than email.
Although, there are still many drawbacks of video-calling such as dropped calls, lagging, and lost audio during a meeting.
Online negotiation platform
A contract management platform allows you to fast-track negotiations through superior collaboration and efficiency. Your team can make edits, comments and track changes on a document simultaneously. This boosts productivity and allows you to negotiate the best terms as everything is conducted smoothly.
Benefits of using negotiation software tools
If you still rely on offline negotiation or email and digital documents, you will not be able to keep up with today’s fast-paced market. This is especially true if you handle high-volume and high-risk agreements daily. Investing in effective negotiation tools will help your business boost its bargaining process, allowing you to grow your company and keep up with its competitors.
