Here at LinkSquares, we're reimagining how legal teams operate. We're committed to providing the best customer experience and constantly improving our software to deliver a strong return on investment (ROI) for our users.
We decided to put our money where our mouth is. Last year, LinkSquares commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying LinkSquares Contract Lifecycle Management (CLM). The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of LinkSquares on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five LinkSquares customers with experience using CLM, which is made up of Finalize, its presignature solution, and Analyze, its postsignature solution. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization.
Before investing in LinkSquares, customers noted how their organizations lacked a dedicated, modern contract management solution. Many were using incredibly basic tools or had contracts scattered across disparate platforms. These limitations led to slow contracting, protracted negotiations between sales and legal, and an inability to effectively comb through old contracts to identify potential risks and opportunities.
After investing in LinkSquares CLM, customers centralized and streamlined their contract management processes for both external and internal contracts. Key results from the investment include significant time savings in creating and signing contracts and the ability to look through all contracts to identify their statuses. This increased efficiency of led to an improved time-to-value of sales contracts. It also resulted in an improved compliance environment and less reliance on outside counsel. Below we highlight the key quantified benefits of LinkSquares CLM for legal teams.
Risk-adjusted, present value (PV) quantified benefits include:
Legal team efficiency and productivity savings recapture 40% of prior contracting workload. LinkSquares CLM enabled customers to simplify and eliminate manual effort for their legal teams. Between automating contract creation, documentation, and searching for terms in new contracts, the legal team more than halves the average manual labor cost per contract.
Reduced outside counsel spend by 86%. Before LinkSquares, customers dealing with contract analysis around mergers and acquisitions (M&A) extensively relied on outside counsel to help perform due diligence on target acquisitions, contracted relationships, and existing material contracts. Additionally, customers leveraged outside counsel to process contracts from the acquired organization. With a centralized database in Analyze and preapproved templates and clauses in Finalize, LinkSquares customers reduced the number of contracts requiring actions by outside counsel from 95% before LinkSquares to 9% after three years.
Reduced probability of risk exposure during contract lifecycle by 75%. Finalize makes it easier to identify potential liabilities, obligations in the event of extraordinary circumstances, and areas where a force majeure clause is required. Analyze can identify areas of liability and obligation in past contracts. With the cost of exposure potentially in the hundreds of thousands of dollars for each contract, customers emphasized LinkSquares significantly reducing the risk.
Increased revenue-generating contracts by 3% through improved process efficiency. LinkSquares provides sales teams with alternatives to lengthy back-and-forth emails with their legal team to hammer out the details of a contract. Preapproved templates and clauses give sales teams more autonomy and eliminate a significant amount of time spent on manual tasks. That time is refocused on selling more, thus boosting revenue.
Increased contract value by 15% by addressing overspend. Without visibility into the universe of executed contracts, it’s easy for unfavorable agreements to renew automatically or for legal to overlook crucial, expensive provisions during signings and negotiations. LinkSquares drives improved contract value by making it easier to let contracts expire without incurring penalties, totaling 15% improved contract value by year 3.
There is much more data to dig through than that! If you’re considering investing in LinkSquares, access the full study here.
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