Contract Management
Choosing Contract Management and CPQ Software: A Buyer’s Guide for Revenue, Legal, and Finance Leaders
Why CPQ and Contract Management Decisions Are Strategic
CPQ and contract management systems shape how revenue is priced, governed, and recognized. Poor choices lead to leakage, risk, and operational drag. Strong platforms create alignment across sales, legal, finance, and operations.
Choosing contract management and CPQ software is about building a scalable revenue foundation—not just speeding up quotes.
Start With Revenue and Risk Complexity
Buyers should assess:
- Pricing model complexity.
- Contract volume and variation.
- Regulatory and compliance requirements.
Core CPQ Capabilities to Evaluate
Effective CPQ platforms support:
- Guided selling and configuration.
- Pricing and discount governance.
- Approval workflows.
- Subscription and usage-based pricing.
Core CLM Capabilities to Evaluate
Contract management software should include:
- Template and clause libraries.
- Negotiation and redlining tools.
- Approval and signature workflows.
- Post-signature obligation tracking.
Integration Between CPQ and CLM
Native or tightly integrated platforms reduce rework and ensure pricing and terms stay aligned.
Scalability and Automation
Buyers should look for systems that handle increasing volume without increasing manual effort.
User Adoption Across Teams
Successful platforms balance ease of use for sales with control for legal and finance.
Total Cost of Ownership
Beyond licenses, consider:
- Implementation effort.
- Customization and maintenance.
- Change management costs.
KPIs to Track After Implementation
- Quote-to-contract cycle time.
- Revenue leakage.
- Contract deviation rates.
- Renewal capture.
Final Thoughts
Choosing contract management and CPQ software determines how efficiently and safely revenue scales. The right platform aligns pricing, contracts, and compliance—turning deal execution into a competitive advantage.
- Top Expert
Nathan Rowan
Program Research, Editor, Expert in ERP, Cloud, Financial Automation
