How to Build a Rock-Solid Business Case for Contract Lifecycle Management Software

Your business needs contract lifecycle management (CLM). The challenge? Getting everyone else on board with that reality. The solution? Building a business case stronger than the loudest naysayer’s opinion. 

Listen, every business relies (in one way or another) on contracts to function. And for every business that’s sick and tired of managing whatever archaic (and likely not secure) contract management system is currently in place, there’s a slew of reasons why dedicated software is the best solution. 

And your best chance of getting decision-makers on board with the expense? Building a business case so rock-solid that even the Hulk can’t punch holes in it. This means gathering data, insights, and analysis — and using it to tell a compelling story your stakeholders will be rooting for.

Table of Contents:

1. How to Lay the Foundations for Your Contract Management Case
2. 6 Steps to Build a Business Case for Contract Lifecycle Management Software
3. Why ContractSafe is the Winning Choice
4. Frequently Asked Questions: Contract Lifecycle Management Software

TL;DR: Key Takeaways

• Before building your business case, take stock of the reasons why the software is needed, gather compelling details to support those reasons, and identify different ways the software will benefit your company.
• When building your business case, position the software as an investment while emphasizing time savings, cost savings, security, and operational efficiencies.

How to Lay the Foundations for Your Contract Lifecycle Management Software Case

Your number one goal here is to get more yeas than nays. So, before actually building out your business case, take stock of the following:

Identify the need for software:

Pinpoint the operational challenges your team faces and write down where your current process breaks down. Ask your team for feedback on pain points and inefficiencies, such as:

• • Someone is constantly asking, “Where’s the XYZ contract?”

  • Wrong versions sent for signature

  • Key dates missed—renewals, end dates, price increases—leading to lost revenue or higher costs

Gather Supporting Data

Turn those pain points into measurable evidence.

• • Track time spent on manual contract management tasks
  • Calculate the cost of inefficiencies
  • Document recent issues like missed deadlines, compliance lapses, or security incidents

Here’s a reality check: if one person spends just 2 hours per week searching for contracts at $50/hour, that’s $5,200 per year—per person—just in search time. Multiply that across your team.

Other high-cost pitfalls to note:

• • Contracts auto-renewing when you meant to cancel

  • Late fees from missed deadlines

  • Duplicate contracts were signed because no one found the existing one

  • Security risks from storing contracts in unsecured locations

  • Lost negotiations due to inaccessible terms

Highlight the software's benefits:

Link each problem to how contract management software solves it:

• • Centralized search = no more “Where is it?” moments

  • Version control = the right document every time

  • Automated reminders = no missed deadlines or renewals

  • Enhanced security = fewer data risks

Also note post-implementation needs like training and ongoing support to ensure adoption and maximize ROI.

Prepare financial details:

Crunch the numbers to make the value impossible to miss:

• • Estimate total investment (implementation + subscription costs)

  • Quantify time and labor savings

  • Estimate avoided risks and losses

  • Compare vendors on pricing, features, and support

Use our ROI calculator to quickly run the numbers and show potential return.

6 Steps To Build a Business Case for Contract Lifecycle Management Software

You’ve got your why, what, and how. Now it’s time to build that business case! Here’s how to do it in six simple steps.

Step 1. Prove Time Savings

Time is money—and too much of it gets burned on low-value, repetitive contract work. Before CLM software, you might spend hours monitoring dates, hunting down documents, extracting and organizing data, sending reminders, and redlining contracts.

Now, imagine replacing all that manual grind with tools built to do the heavy lifting for you:

• • Forms and Templates: Eliminates repetitive contract creation steps and reduces contract drafting time by using customizable templates for standardization
  • AI-based data extraction: Automates data entry, drastically cutting down on manual processing time
  • Contract repository: Provides quick digital access to contracts, eliminating time consuming searches through physical files
  • Instant search: Quickly locate any contract, no matter the file type or format, thanks to OCR-powered search that makes finding documents virtually instantaneous.
  • Automated workflows: Sspeeds up contract approvals and reviews, minimizing manual effort and time delays. 
  • Renewal Alerts: Eliminate time spent manually tracking deadlines

These features not only give you time to work on strategic priorities but also pave the way for significant financial savings. And who doesn’t love savings? 

Step 2. Calculate ROI

Time savings sounds great, but leadership wants to see dollar signs. A solid return on investment (ROI) calculation will be one of the most important parts of your business case.

What is ROI? Simply put, ROI measures how much money you'll save or earn compared to what you spend. If you invest $10,000 in CLM software and save $20,000 in costs, your ROI is 100%.

Why does ROI Matter? Leadership teams approve software purchases that pay for themselves. Your job is showing how CLM software will save more money than it costs.

Small, medium, or large — whatever size your company is right now, contract management software can help free up your team’s time and financial resources. Taking the time to demonstrate both points in your business case will help justify the software cost and get your leadership team on board.

Step 3. Confirm it Checks All Security Boxes

Contracts are legally binding. And keeping them safe is arguably the most important. 

Be sure to outline the security-related benefits contract management software brings to the conference table by checking off the following tasks:

1. Make a list of governing agencies and their security requirements
2. Check contracts for data security or privacy SLAs
3. Get security confirmation from your IT team
4. Start building out your roles and permissions settings

With a cloud-based contract management system, your company’s legal contracts will be maintained on off-site servers that are protected by expert-level security. If that isn’t enough, detail the benefits of a digital storage repository — like how having full control over sharing and roles makes it easy to see who accessed or edited a document. This eliminates questions of who made a particular change to a contract and why. 

Storing contracts in the cloud also eliminates the paper trail of a physical contract, ensuring confidential contracts stay confidential.

RELATED:  What is Cloud Contract Management? 6 Benefits

Step 4. Bundle the Company-Wide Business Benefits

Contract lifecycle management software is a powerful tool. Cost savings, time savings, and security are three big benefits, but countless others will improve contract performance across the whole organization:

• • Improved contract visibility: Highlight how a central repository for contracts and contract tracking features make it easy for everyone to stay informed and up-to-date.
    
    
  • Comprehensive compliance and risk management: Emphasize the role of automated alerts in mitigating risks and ensuring compliance by notifying teams about upcoming renewals, deadlines, or compliance requirements.
    
    
  • Easier collaboration: Stress how cloud-based platforms with personalized dashboards keep everyone on the same page, making the contract management process more efficient.
    
    
  • Data-driven decision-making: Point out how detailed reports generated by the software can empower leadership and guide strategic decisions, highlighting trends and areas for improvement in the contract management process.
    
    
  • Streamlined follow-ups on aging accounts: Explain how the software's reminder and contract tracking features can help manage aging accounts, ensuring timely follow-ups and reducing the risk of forgotten or overdue contracts or renewals.
    
    
  • Faster approvals: Illustrate how automated workflows and alerts can help speed up contract turnaround times, contributing to faster project starts and business agility.
    
    
  • Reduced errors or lost documents: Underscore how digital storage and AI data extraction can minimize human errors and the risks associated with physical document storage. 

Bottom line? Wherever possible, help your company leaders see how green the grass (and money) is on the other side. Talk about a current issue, present the solution, and voilà! You’ll have an even stronger business case and your company will be better for it.  

Step 5. Give It to Them Straight

The same software that you know will benefit your company is also going to cost them. You know that going in, and you can bet the leadership team knows it even more.

To make sure your business case for contract management software is rock-solid, be as clear-cut as possible about the cost. And while we’re on the subject, remember that word choice matters. Rather than outlining the “cost” of the software, position it as an investment. 

Don’t shy away from talking through the investment cost in your business case. Leaving it out can signal unnecessary red flags and questions you might not be ready or able to answer.

Step 6. Showcase the Right Contract Management Software

After emphasizing the investment in the previous step, really drive the point home by highlighting the contract management software that works best for your organization. This is where you want to tie everything together and share a solution that ticks all these boxes:

• • Easy to use: Not everyone is tech-savvy. Demonstrate how easy the new software is to use and navigate. 
    
    
  • Affordable: Focus on the value your proposition provides. Highlight that the software offers essential features without the extra costly features.
    
    
  • Customizable: Show how the software can be tailored to fit your company’s specific contract management processes and requirements.
    
    
  • Scalable: Emphasize the software's ability to grow with your business. Illustrate its capacity to handle increasing volumes and complexities as your organization expands.
    
    
  • Integration capabilities: Outline how well the software plays with your existing systems. Stress the importance of seamless integration for maintaining efficient workflows.
    
    
  • Support and training: Underline the level of customer support and training the vendor provides. This ensures smooth implementation and ongoing usage.
    
    
  • Reviews and testimonials: Share real-world feedback and success stories. Demonstrating positive experiences from similar businesses can be a huge help in building your case.

By incorporating all of these elements, your business case will be clear, thorough, and convincing. Be sure to take your time and, if you can, have someone review it before presenting to the decision-makers at your company. Good luck!

Take the next step with confidence and be the hero of your business case:
Our comprehensive Contract Lifecycle Management Software Checklist shows you what features matter most and helps you evaluate solutions that support your business case.

Why ContractSafe is the Winning Choice 

ContractSafe is the CLM software platform designed for teams who want contract lifecycle management power without the pain. You get all the features you need to manage contracts from intake to execution to renewal—with zero bloat, zero nonsense, and no steep learning curve.

• • Easy everything: Powerful enough to manage contracts end-to-end, simple enough for everyone to use. Adopt instantly (Most teams are live in under 30 minutes), work faster, stress less.

  • Affordable and scalable: Adapts to your needs, workflow, and pace. Pay for only what you need. Ready for you as you grow.

  • Responsible and practical AI: Our AI features save time without adding complexity. Extracts key terms, flags amendments, identifies execution status, and more

  • Enterprise-grade security: SOC 2 compliant, GDPR-ready, with full audit trails—your contracts are locked down and fully traceable.

  • Total visibility: Every contract, every detail, all in one place—and searchable in seconds.

  • Easily Customizable: Organize, visualize, and report on your contracts your way—no IT help, no spreadsheet headaches.

  • Dedicated partnership: Our support doesn’t stop at implementation. Every plan includes a dedicated CSM and ongoing assistance for the life of your contract—plus white-glove support from real humans, every step of the way.”

If you’ve been burned by overbuilt CLM platforms in the past, this one’s for you. 

Ready to build your business case for contract management?
Try ContractSafe today
and experience the difference for yourself.