Salt Lake City, UT (PRWEB) January 23, 2007
According to an Aberdeen Group study available for a limited time on CRMToday.com, contract management is a key component to customer relationship management (CRM). "Contract Management: the Quote-to-Cash Cycle," (http://www.crm2day.com/library/50350.php) shows that contract creation, negotiation and approval affect approximately 18 percent of a company's sales cycle. The study predicts that revenues managed by a contract will increase by an average of 21 percent over the next two years. In partnership with Aberdeen, CRMToday.com (http://www.CRM2day.com) -- a business-to-business (B2B) online source -- helped to conduct the study's survey.
Respondents to the Aberdeen Group's survey indicated that they "lose 9 percent of their revenue due to regulatory penalties, missed deadlines, lost sales, 'maverick' pricing, and transactional errors," a substantial loss that can be attributed primarily to missing or misplaced contracts. To help companies improve customer relationships, the study recommends:
- Migrating contracts to contract management software, using standardized terms and language.
- Streamlining the entire quote-to-cash process by integrating contract management software with financial and transactional systems to reduce errors and delays.
- Using contract management software to track contractual obligations and commitments to customers and make contract data available to relevant stakeholders.
"CRMToday.com provides industry studies, resources, and articles about a variety of B2B industry issues like contract management that are critical to maintaining valuable customer relationships," says site spokesperson and founder, Aris Pantazopoulos. "We hope this report we're offering from the Aberdeen Group will help B2B executives see the intrinsic value of implementing their own contract management software solution."
According to a case study published on the International Association for Contract and Commercial Management (IACCM) Web site, the Burlington Northern and Santa Fe Railway Company implemented a contract management solution that reduced the manual effort required for contract administration by 72 percent and decreased the average time to create a new contract from 30 days to 11. With the advent of this contract management system, BNSF was also able to reduce the number of full-time employees who manage contracts from 14 to four.
CRMToday.com (http://www.CRM2day.com) provides a resource library, interactive tools, expert advice from industry professionals, company profiles and information about industry issues. To help businesses learn more about how to shape their consumer loyalty through properly applied customer relationship management, the first of a three-part study on contact management is available on the site for a limited time.
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