Skip to product menu
close
  • Sales
    Press Space or Enter to display list of options
EXPLORE ALL PRODUCTS

Sales

 
CRM

Comprehensive CRM platform for customer-facing teams.

CRM
 
Bigin

Simple CRM for small businesses moving from spreadsheets.

Bigin
 
Forms

Build online forms for every business need.

Forms
 
SalesIQ

Live chat app to engage and convert website visitors.

SalesIQ
 
Bookings

Appointment scheduling app for consultations with customers.

Bookings
 
Sign

Digital signature app for businesses.

Sign
 
RouteIQ

Comprehensive sales map visualization and optimal route planning solution.

RouteIQ
 
Thrive

Complete loyalty and affiliate management platform.

Thrive
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
Suites
CRM Plus

Unified platform to deliver top-notch customer experience.

CRM Plus

Marketing

 
Social

All-in-one social media management software.

Social
 
Campaigns

Create, send, and track targeted email campaigns that drive sales.

Campaigns
 
Forms

Build online forms for every business need.

Forms
 
Survey

Design surveys to reach and interact with your audience.

Survey
 
Sites

Online website builder with extensive customisation options.

Sites
 
PageSense

Website conversion optimization and personalisation platform.

PageSense
 
Backstage

End-to-end event management software.

Backstage
 
Webinar

Webinar platform for webcasting online webinars.

Webinar
 
Marketing Automation

All-in-one marketing automation software.

Marketing Automation
 
LandingPage

Smart landing page builder to increase conversion rates

LandingPage
 
Publish

Manage all your local business listings on a single platform.

Publish
 
SalesIQ

Live chat app to engage and convert website visitors.

SalesIQ
 
Sign

Digital signature app for businesses.

Sign
 
Thrive

Complete loyalty and affiliate management platform.

Thrive
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
NEW
LeadChain

Sync, manage, and convert leads across channels seamlessly.

LeadChain
 
NEW
CommunitySpaces

Online community platform for individuals and businesses to grow their network and brand.

CommunitySpaces
 
Suites
Marketing Plus

Unified marketing platform for marketing teams.

Marketing Plus

Commerce and POS

 
Commerce

eCommerce platform to manage and market your online store.

Commerce

Service

 
Desk

Helpdesk software to deliver great customer support.

Desk
 
Assist

Remote support and unattended remote access software.

Assist
 
Lens

Interactive remote assistance software with augmented reality.

Lens
 
FSM

End-to-end field service management platform for service businesses.

FSM
 
SalesIQ

Live chat app to engage and convert website visitors.

SalesIQ
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
Solo

The all-in-one toolkit for solopreneurs.

Solo
 
Bookings

Appointment scheduling app for consultations with customers.

Bookings
 
Suites
Service Plus

Unified platform for customer service and support teams.

Service Plus

Finance

 
Books

Powerful accounting platform for growing businesses.

Books
 
FREE
Invoice

100% Free invoicing solution.

Invoice
 
Expense

Effortless expense reporting platform.

Expense
 
Inventory

Powerful stock management and inventory control software.

Inventory
 
Billing

End-to-end billing solution for your business.

Billing
 
Checkout

Collect payments online with custom branded pages.

Checkout
 
NEW
Payroll

Payroll software with automated tax payments and filing.

Payroll
 
Solo

The all-in-one toolkit for solopreneurs.

Solo
 
Practice

Practice management software for accounting firms.

Practice
 
Sign

Digital signature app for businesses.

Sign
 
Commerce

eCommerce platform to manage and market your online store.

Commerce
 
Suites
Finance Plus

All-in-one suite to manage your operations and finances.

Finance Plus

Email and Collaboration

 
Mail

Secure email service for teams of all sizes.

Mail
 
Meeting

Online meeting software for all your video conferencing & webinar needs.

Meeting
 
Writer

Word processor for focused writing and discussions.

Writer
 
Sheet

Spreadsheet software for collaborative teams.

Sheet
 
Show

Create, edit, and share slides with a sleek presentation app.

Show
 
Notebook

Beautiful home for all your notes.

Notebook
 
Cliq

Stay in touch with teams no matter where you are.

Cliq
 
Connect

Employee experience platform to communicate, engage, and build positive employee relations.

Connect
 
Bookings

Appointment scheduling app for consultations with customers.

Bookings
 
TeamInbox

Shared inboxes for teams.

TeamInbox
 
WorkDrive

Online file management for teams.

WorkDrive
 
Sign

Digital signature app for businesses.

Sign
 
Office Suite

Powerful collaborative work platform for teams.

Office Suite
 
Office Integrator

Built in document editors for web apps.

Office Integrator
 
ZeptoMail

Secure and reliable transactional email sending service.

ZeptoMail
 
Calendar

Online business calendar to manage events and schedule appointments.

Calendar
 
Learn

Knowledge and learning management platform.

Learn
 
Voice

Cloud Contact Center Software for businesses.

Voice
 
ToDo

Collaborative task management for individuals and teams.

ToDo
 
Tables

Work management tool to connect people, processes, and information.

Tables
 
FREE
PDF Editor

Collaborative online PDF editing tool.

PDF Editor
 
Suites
Workplace

Application suite built to improve team productivity and collaboration.

Workplace

Human Resources

 
People

Organize, automate, and simplify your HR processes.

People
 
Recruit

Intuitive recruiting platform built to provide hiring solutions.

Recruit
 
Expense

Effortless expense reporting platform.

Expense
 
Workerly

Manage temporary staffing with an employee scheduling solution.

Workerly
 
NEW
Payroll

Payroll software with automated tax payments and filing.

Payroll
 
Shifts

Employee scheduling and time tracking app.

Shifts
 
Sign

Digital signature app for businesses.

Sign
 
Suites
People Plus

Comprehensive HR platform for seamless employee experiences.

People Plus

Security and IT Management

 
Creator

Build custom apps to simplify business processes.

Creator
 
Directory

Workforce identity and access management solution for cloud businesses.

Directory
 
FREE
OneAuth

Secure multi-factor authenticator (MFA) for all your online accounts.

OneAuth
 
Vault

Online password manager for teams.

Vault
 
Catalyst

Pro-code platform to build and deploy your apps.

Catalyst
 
Toolkit

Complete resource for any admin-related lookup queries.

Toolkit
 
Lens

Interactive remote assistance software with augmented reality.

Lens
 
Assist

Remote support and unattended remote access software.

Assist
 
QEngine

Test automation software to build, manage, execute, and report testcases.

QEngine
 
NEW
RPA

Automate manual, tedious, and repetitive tasks easily.

RPA

BI and Analytics

 
Analytics

Modern self-service BI and analytics platform.

Analytics
 
Embedded BI

Embedded analytics and white label BI solutions, tailored for your needs.

Embedded BI
 
DataPrep

AI-powered data preparation service for your data-driven organization.

DataPrep
 
NEW
IoT

Harnessing IoT analytics for real-time operational intelligence.

IoT

Project Management

 
Projects

Manage, track, and collaborate on projects with teams.

Projects
 
Sprints

Planning and tracking tool for scrum teams.

Sprints
 
BugTracker

Automatic bug tracking software for managing bugs.

BugTracker
 
Solo

The all-in-one toolkit for solopreneurs.

Solo

Developer Platforms

 
Creator

Build custom apps to simplify business processes.

Creator
 
Flow

Automate business workflows by creating smart integrations.

Flow
 
Catalyst

Pro-code platform to build and deploy your apps.

Catalyst
 
Office Integrator

Built in document editors for web apps.

Office Integrator
 
ZeptoMail

Secure and reliable transactional email sending service.

ZeptoMail
 
QEngine

Test automation software to build, manage, execute, and report testcases.

QEngine
 
Tables

Work management tool to connect people, processes, and information.

Tables
 
NEW
RPA

Automate manual, tedious, and repetitive tasks easily.

RPA
 
NEW
Apptics

Application analytics for all apps.

Apptics
 
Embedded BI

Embedded analytics and white label BI solutions, tailored for your needs.

Embedded BI
 
NEW
IoT

Build, deploy, and scale IoT solutions for connected businesses.

IoT
 
DataPrep

AI-powered data preparation service for your data-driven organization.

DataPrep

IoT

 
NEW
IoT

Low-code IoT platform and solutions for connected businesses.

IoT

Search Result

 
CRM Plus

Unified platform to deliver top-notch customer experience.

Try now
CRM Plus
 
Service Plus

Unified platform for customer service and support teams.

Try now
Service Plus
 
Finance Plus

All-in-one suite to manage your operations and finances.

Try now
Finance Plus
 
People Plus

Comprehensive HR platform for seamless employee experiences.

Try now
People Plus
 
Workplace

Application suite built to improve team productivity and collaboration.

Try now
Workplace
 
Marketing Plus

Unified marketing platform for marketing teams.

Try now
Marketing Plus
 
All-in-one suite

Zoho One

The Operating System for Business

Run your entire business on Zoho with our unified cloud software, designed to help you break down silos between departments and increase organizational efficiency.

TRY ZOHO ONE
Zoho One
Zoho Marketplace

With over 2000 ready-to-use extensions across 40+ categories, connect your favorite business tools with the Zoho products you already use.

EXPLORE MARKETPLACE
Marketplace
Skip to main content

What is contract lifecycle management (CLM)?

Contract lifecycle management (CLM) refers to the way a business handles contracts through their various stages. An effective CLM solution streamlines and simplifies the contract management process while minimizing errors.

Try Zoho Contracts
Contract Lifecycle Management (CLM)

Stages in CLM

Stages in contract lifecycle management (CLM)

A contract undergoes nine stages in a typical lifecycle. These are:

Contract request

When a business agreement is imminent, the parties discuss terms and gather data to draft an acceptable contract.

Authoring

Contract authoring is the actual drafting process. The author puts the terms and clauses of the contract in writing. Contract owners/authors usually collaborate with peers during this stage.

Approval

After drafting the contract, the contract owner sends the document to internal stakeholders for approval. This process ensures stakeholders are aware of potential risks and opportunities early on.

Negotiation

Both parties discuss the terms and clauses in detail to reach a consensus. Contract negotiation can go through several rounds and is often the most challenging part of the contract management process.

Execution

The parties sign the contract document, and the contract comes into effect. In the digital CLM process, secure e-signature software is used for this step.

Obligation and compliance

Every promise made in a contract is an obligation. The contract owner assigns obligations to directly responsible individuals (DRIs) and ensures they are fulfilled. Unfulfilled obligations can lead to legal, financial, and reputational damage.

Amendments

Sometimes, parties mutually agree to make changes/amendments to existing clauses. Contract amendments usually go through the approval, negotiation, and signature cycles.

Renewals/extensions

When the involved parties decide to carry out an existing agreement beyond the chosen end date, they either renew the contract or extend the term period.

Reports

A company's contracts contain critical information that can be used to refine the contract management process. An appropriate analytical model can help derive valuable insights, while providing contract managers an opportunity to impact company strategy.

Why CLM

Why should your business use contract lifecycle management software?

Small businesses and startups might manage to get through the CLM process manually. But as a company scales and deals with more contracts, a digital CLM solution becomes indispensable. With business landscapes becoming highly volatile and increasingly regulatory (not to forget pandemic-driven supply chain disruptions), the emphasis on risk mitigation and compliance is high.

CLM software can help your company improve compliance by empowering admins with more control and visibility over their business contracts. The right software also improves contract turnaround times by streamlining the contract lifecycle, giving contract managers time to focus on high-value tasks rather than spending hours each day on paperwork.

Benefits of CLM

Benefits of contract lifecycle management (CLM) software

What is Contract Lifecycle Management (CLM)

Easy contract authoring

Most CLM software solutions offer both predefined and custom templates. This drastically reduces the time it takes to author a contract. A sophisticated CLM software solution comes packed with a full-blown word processor with real-time collaboration features to improve the quality of the contract language and reduce errors. Advanced document assembly allows clause selection and switching between alternative clause languages under the same clause, eliminating duplication of templates.

Benefits of Contracts Lifecycle Management

Seamless contract negotiation

CLM software eliminates the need for sending contract documents as email attachments throughout the negotiation process. Contract owners can provide controlled access to contract documents by sharing password-protected links with counterparties. Counterparty contacts can collaborate with their peers, leave comments on the document, suggest changes, and track them. If needed, both parties can quickly access or revert to older document versions.

CLM Software

Simple signature process

Physical documents no longer need to be passed between companies for signature. Most CLM software solutions come bundled with secure e-signature software so documents can be signed digitally. Contract owners can set the signing order. High-quality e-signature software solutions offer military-grade encryption and are compliant with e-signature laws, such as ESIGN and eIDAS.

CLM Solution

Effortless obligation management

Failing to fulfill contractual obligations can impact your business legally and financially and potentially damage your brand reputation. CLM software enable contract owners to extract, track, and manage contractual obligations at an individual contract level. They can assign task and non-task obligations to business owners and track their progress without leaving the CLM platform. This level of granular obligation management mitigates business risk.

CLM Tool

Advanced analytics

Reports transform your contract data into business insights. These insights can help you refine your strategies. Clause-based reports help admins quickly identify and amend clauses to comply with changing government regulations. Similarly, performance-based reports offer insights that help admins understand what is impacting/delaying the contract management process so they can take impactful actions. Sophisticated CLM software comes with a dashboard that presents key performance indicators to help users prioritize tasks.

 CLM Analytics

Faster auditing

Auditing is a time-consuming and sometimes painful process that requires digging through pages of data and tracking all activities within the system. A CLM software solution stores all activities performed by users in a central audit system. Logs provide information about CLM system access, downloads, activities (such as approvals and signatures), and more. These logs give admins better control over the system, fast-tracking the auditing process and improving compliance.

 CLM Audition

Improved governance

Admins can configure approval workflows to keep stakeholders aware of potential risks. With its advanced search and filter options, the central contract repository in a CLM system enhances visibility. Modern CLM software also have advanced data protection settings to help your business comply with data protection regulations.

CLM Governance

Better change management

The current business landscape is constantly changing. CLM software can help your business stay abreast of changes with intuitive features, such as smart letter templates that are generated automatically in the event of a contract amendment, renewal, extension, or termination. This ensures that all contract stakeholders are aware of any change made to the contract at any point in time.

CLM Contract Lifecycle Management

Mobile CLM

Keep track of your contracts on the go with mobile applications. Modern CLM software allow you to approve contracts, track and manage obligations, and gain insights with a personalized dashboard right from the palm of your hands.

Mobile Contract Lifecycle Management App

Buy-side vs. sell-side CLM

Contract lifecycle management (CLM) : Buy-side vs. sell-side

Organizations execute contracts both on the buy-side and sell-side. There are different requirements, considerations, and goals for each mode.

Buy-side

Buy-side contracts are drafted for the procurement of goods and services from suppliers.

The ability to sift through similar contracts within a CLM system can help procurement teams negotiate the best possible price and better utilize spend under management (SUM). Improved efficiency will also ensure that procurement teams bring down lead times and meet their deadlines.

Sell-side

Sell-side contracts arrange for the sale and delivery of goods and services to a buyer.

When it comes to the sell-side, time-to-sale is the most critical metric. Inefficient contract management and the resulting delays can lead to lost deals. That’s why sales managers adopt modern CLM solutions to streamline their contract processes. The wealth of pricing information in existing contracts also helps devise the right pricing strategy.

While the two functions are usually separated within an organization and follow different processes, most of their critical contract requirements are the same. These requirements include managing delivery, performance, payment, and fulfilling obligations. That's why it helps to have one holistic CLM software that caters to the needs of both departments.

CLM implementation

Implementing contract lifecycle management (CLM) software

Once you’ve chosen a CLM system, the following best practices will help you with successful implementation:

Map out your contracting process

  • How are the procurement and sales teams going to access your CLM system?
  • What happens once they raise a contract request?
  • After contract execution, what does the handover to implementation teams look like?
  • What happens once the contract has completed its term?
  • How frequently will compliance audits take place?

Train your team

  • Does your team understand how a CLM system can improve the contract management process?
  • Does your team know how to make optimum use of a CLM system?
  • Are they aware of the cost of non-compliance?

Automate repetitive tasks

  • Which of your contracting actions can be automated?
  • Which specific tasks should be automatically assigned to an individual once a contract request is raised?

Contract lifecycle management with Zoho Contracts

With a clean and straightforward CLM design, Zoho Contracts suits businesses of all sizes. Zoho Contracts helps streamline the contract process, mitigate risks, improve governance, and promote cross-functional collaborations. It comes packed with features, such as advanced contract authoring and document assembly powered by Zoho Writer, granular-level obligation management, smart letter templates, and extensive reports

Try Zoho Contracts

FAQ

  • What does CLM stand for?

    CLM stands for Contract Lifecycle Management. The term CLM is also interchangeably used to denote a CLM solution that can streamline the contract lifecycle process making contracting fast, effective, and risk-free.

  • What are the capabilities of digital CLM software?

    CLM software should boast a wide range of capabilities, including:

    - Contract management
    - Contract authoring and collaboration
    - Contract negotiation
    - Contract execution
    - Obligation management
    - Post-execution management
    - Analytics and reporting
    - Auditing and governance
    - Data protection

  • What are the CLM metrics to measure?

    CLM software provides the following metrics to give you a clear picture of the health of your contract management process:

    - Average contract cycle times
    - Approval turnaround times
    - Contract negotiation cycle times
    - Number of contracts executed within a period
    - Annual contract value
    - Gain/loss from terminated contracts

  • How should you choose a CLM for your business?

    Choosing the right CLM software for your business depends on a number of factors:

    User experience: CLM software that offers a simple and clean user interface improves user experience and streamlines the implementation process.
    Scalability: A CLM system with tools to adapt to your organizational needs as it scales is a necessity.
    Customization: Good CLM software should support customization to accommodate your organization's needs.
    Analytical capability: By choosing a CLM system with advanced analytical capabilities that derive business insights from contract data, you can transform your CLM investment from tactical to strategic.

  • How does a CLM software work?

    CLM software helps reduce contract cycle times and mitigate risks by streamlining the contract lifecycle and managing obligations. It simplifies the auditing process for contract managers by improving visibility through audit, user, and download logs. It also ensures better governance by enabling processes such as approval workflows and providing a central repository for all the organization's contracts.