Plug Revenue Leakages With A Contract Reminder Software

Contracts are ubiquitous to any corporate relationship, and each agreement is teeming with details. These are key details that range from dates, stakeholders, monetary values, clauses, and much more.

When multiplied with 10 or even 20 contracts, that’s a ton of information to deal with. With such volumes of information, it becomes difficult to set reminders for individual contracts. 

In fact, a study by World Commerce & Contracting revealed that, on average, poor contract management practices cost businesses up to 9% of their revenues annually.

Another survey by KPMG highlighted the “value leakage” emerging from deficient document governance, leading to contracts losing anywhere between 17%-40% of their original value.

And, this is not taking into account the productive hours lost, contract files misplaced, renewal dates missed, and other mishaps. 

Fortunately, a simple fix is using different software and set reminders for contracts.

What is a contract reminder software?

A contract reminder software helps users track a variety of important dates, details, and deadlines automatically. They can set up reminders for contracts either one-time or in a recurring way.

What are the benefits of contract reminder software?

Besides saving time and structuring workflows, a good contract reminder software offers the following advantages:

Organize work better

  • Planning your daily tasks becomes much more manageable with the help of a contract reminder software. Say 4 contracts are due for renewal in 2 weeks, and 3 of them need approvals from external folks - simply setting up a reminder 3 weeks ahead will help you prioritize which contracts to get started on that day, which ones should go for approval the next day, and so on.
  • This also provides increased visibility into the task pipeline, making it easier to identify potential bottlenecks (e.g., will the approvals be delayed because the stakeholders are not available).

Plug revenue leaks

  • For many types of contracts, such as purchase orders, SaaS contracts, etc., missing a deadline or a renewal date comes with a very heavy price tag. With a contract reminder software in place, this is something that can be avoided easily.
  • Renewals are also the perfect opportunities for organizations to reset prices, negotiate services or upsell products. Simply by setting a reminder for this, you can allow yourself plenty of time to prepare for such negotiations.

Avoid contract errors

  • With notifications ahead of time, legal teams will not be rushing reviews or working under tight timelines to prepare contracts. This would provide more time to do multiple reviews if needed and minimize chances of missed details or errors in the contract.

What are the different types of contract reminder software?

Contract reminder software can be broadly classified into two categories:

  1. General-purpose
  2. Purpose-built

General-purpose

  • Spreadsheets

Spreadsheets are super versatile, so it isn’t surprising that they can be used effectively to manage your contracts as well. In fact, we had created an entire template to manage your contract lifecycle end-to-end - you can download that right here. 

As an added bonus, on MS Excel, you can add reminders to important dates or key details. There is a simple 4-minute tutorial I found on this right here

This gets better with Google Sheets, as you can set up reminders directly to your email. Check out this super easy tutorial from Trevor Beck for this here.

  • Kanban Boards

Kanban boards are predominantly used to track tasks, but a nifty feature is that they can also notify you on both status changes and due dates for tasks.

There are many (free) Kanban board tools available that you can try out for this - Asana, Trello, Notion being a few.

Just as a quick example, here is one I’ve created on Notion, the task management board that we use.

If you notice here, I’ve set up a “Renewal Date” property, and for that, you can set custom reminders. Check here:

You can play around with Kanban boards and customize them the way you want, which is honestly the best thing about them!

  • Calendars and calendar plug-ins

Probably the most time-consuming of the lot to set up, calendars still work in a pinch to double up as contract reminder software.

Here is a screenshot of how it looks like to set up a reminder on Google Calendar:

Important note: “Reminder” on Google calendar does NOT send you an email notification, only a push notification on your mobile device. If you want email notifications to be configured, then I suggest setting up an upcoming renewal as an event instead.

Here I’ve set up the actual renewal date as an event, with 3 different reminders:

You can try this with whatever calendar app you use as well.

Some other chrome plugins you can use for the same effect are Remind MePi Reminder, etc.

  • Email add-ons

Email add-ons, such as Boomerang and Streak CRM, can bring up the entire email thread on the date you set up to the top of your inbox as a reminder. This will add context on top of the reminder, which can help you prepare better.

Purpose-built

Platforms such as SpotDraft specialize in end-to-end contract management. So it has features custom-made to remind you about your contract deadlines.

Here is how an email reminder looks like on SpotDraft:

If you want to check out other such powerful features available, sign up for a demo today!