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We all know that successful salespeople close deals. But what happens leading up to your prospect’s verbal acceptance and signature can be a deal breaker.
The National Association of Sales Professionals lays out a seven-stage process with each stage representing the activities that move closer to closing the sale. While the contract typically comes into the discussion somewhere within the final three stages, a poorly managed contract process can significantly lengthen the sales cycle causing disputes, missed deadlines, implementation delays, and negative impacts to your bottom line.
Source: Burroughs, Inc.
Here’s what you need to know about a well-managed contract when partnering with a service provider.
1. ease of doing business
A well-managed contract process can contribute to the overall success of customer relationships. When the process is cumbersome and arduous it not only creates extra work for both parties but can leave an impression on the customer that your company may be ill-prepared or even possibly difficult to work with.
2. Establish trust
Trust is key to any good partnership. Companies like to do business with organizations that are open-minded, listen well, and whose contracts reflect the offer as presented. Nothing can kill a deal faster than a lack of trust (from either side), so that's why it is important to be transparent and operate in good faith through every step of the process.
3. Sales velocity & Process
An efficient contract process is essential for minimizing delays during presentation, review, and redlining. According to Aberdeen Research, it typically takes 20-30 days to create, negotiate, and finalize a contract. By streamlining this process, organizations can significantly reduce the timeline, leading to quicker implementation and revenue generation. When the process reaches the stage of "where the rubber meets the road," the terms have been clearly outlined and thoroughly defined, helping to avoid major surprises later on.
4. good contacts make good partnerships
A good contract serves as the framework for a strong, long-lasting relationship. Defining all the key terms, deliverables, and critical aspects early on in the process can lead to expanded partnership opportunities or business referrals that can lead to new partnerships.
5. EYE on the future
Good contracts anticipate changes in business needs and industry standards and, to the extent possible, provide consideration for those eventualities. For example, a contract with unnecessary detail may be difficult to maintain, resulting in change orders or amendments. It is critical to include all important information, but consider how to make your contracts as low maintenance as possible.
The burroughs partnership
The Burroughs team knows a thing or two about crafting a well-managed service contract.
For over 138 years, we've partnered with countless customers to develop service contracts rooted in collaboration, service excellence, and innovation. Our commitment to contract governance, compliance, and best-in-class methodologies takes the stress out of the process, so you can focus on what matters most - your customers.
Bringing It All Together
If you are ready to unlock the superior and comprehensive service your business needs to maximize its full potential, look no further than Burroughs.
Whether you need service for payment and transaction automation, unattended self-service technology, robotic automation systems, or connected IoT devices, Burroughs is a trusted name when it comes to full lifecycle OEM-agnostic support across North America. With a team of more than 500 directly employed service technicians with experience managing over 350,000 devices, Burroughs has you covered from the start.
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