The customer said yes, now what? How to sign a contract without trauma



sign a contract

Even amidst the economic crisis, the services market has never been so heated in Brazil. And the reason for this growth is the change in customer consumption, which has been accompanied by the economy of recurrence  – replacing the purchase of a physical product with access to services that make life easier for people and business management.

This change, in fact, was what opened the doors for SaaS companies such as Resultados Digitais and Vindi, which offer software as a service. In addition to being a beneficial model for companies in terms of agility, cost reduction, and focus on IT efforts, SaaS is already consolidated in the foreign market. In Brazil, this model has grown and has shown great potential to reach exponential numbers.

A 2015 survey by the Brazilian Association of Software Companies on the SaaS market found that 42.4% of companies working with software in the cloud opted for this model due to a natural evolution of an existing product, while 22.2 % said they have identified an opportunity in this market.

High adhesion rate of people and companies, agility in activities, cost reduction, and focus on IT efforts. These are all the reasons mentioned so far to promote how much the Software as a Service market has the potential to grow in Brazil. Not to mention other complementary services, such as consultancies, for example.

But then, what can be a problem for these companies with such a promising market? Contracts!

If you manage to scale your business and acquire more and more customers, but don’t ensure that the consumer’s input is accompanied by a good experience, he – who you’ve invested time and money to attract – may give up your product and go to the competitor.

That’s why, in this content, we’ll give you the best tips to make signing a contract agile, simple, and easy. In other words, a pleasant moment for you and your customers.

But, before talking about the tips that will optimize the preparation of your contract, it is necessary to understand what a service provision contract is – the modality used by SaaS companies, for example – and what are the main information to be worked on it.

Browse the content

  1. How to make a service contract?
  2. 4 Tips to Make Contract Signing an Enjoyable Time
  3. Conclusion

How to make a service contract?

As with any document, the service provision contract also follows a model with pre-defined items. Are they:

Identification

Contracts for the provision of services must start with the qualification of the parties involved in the negotiation. That is, who are the contracting company (whether an individual or legal entity) and the contractor (the company that provides the service). The information that should be included in this topic is:

  • Corporate Name;
  • CNPJ number (National Register of Legal Entities);
  • Headquarter address (street, district, city, state, and zip code);
  • Company representative details.

Object

The object is a kind of summary of the generic service being provided by the contractor (service provider) and adhered to by the contracting party (company/individual).

This is a standard point, as the customer who reaches the signing of the contract already knows the product, but this must be included in the document.

Contractor’s obligation

This clause is used to specify which services will be provided by the company providing the service and all the general rules established in the negotiation so that no “surprise” occurs during the use/provision of the services.

Examples of information contained in this topic are:

  • The secrecy that was negotiated between the parties;
  • The possibility of the contracting party talking about the company to others.

Contractor’s obligations

Here, the conditions that the contracting party will commit to the contracted party are informed, such as: what the company has to do to benefit from the contracted service.

Services provided

All services that will be performed are specified. For example, in the SaaS contract, the person not only adheres to access to the platform/software but also to support, service via communication channels, adherence to other optional features, etc.

Payment conditions

Here, the payment terms are defined, such as the terms and means used by the contractor to pay the company.

Also read:  Does your customer want a discount? 4 sales techniques to get out of this

Termination

At this point, the rules are established in the event of breaches in contractual clauses or failure to comply with the obligations agreed upon by any of the parties involved.

Here, a minimum period is established for the contracting party to notify the company providing the service that it will cancel the accession to the services and other features acquired.

Will you refund the money if the customer churns? All of this must be included in the “termination”

Now that you know the most important topics that a service contract must have, let’s go to the 4 tips that can improve its elaboration and make the subscription a simple, agile and easy moment for your client.

4 Tips to Make Contract Signing an Enjoyable Time

use objective language

One of the biggest problems with contracts (in all spheres) is the difficult and bureaucratic language used by those who format the document.

Most of the contracts are drawn up by lawyers or accountants who govern the description of the clauses according to the law (as provided by law) and, therefore, use terms that make the process of understanding the client a complex thing.

It is important that a lawyer is involved in drawing up a contract for the provision of services. This is because the negotiation clauses must be governed by the law.

But the document can contain legal language without being boring. The contract does not need to be constructed by the lawyer and, even if it is, it can be written in a way that your client understands without needing someone to “translate” what is written.

Be flexible

Since the Roman period, contracts already existed and were used for merchants to attract debtors by submitting them to their will.

Afterward, the contracts became consensual. In the feudal period, for example, lords and kings traded land for military support after long hours of conversation.

This means that a contract contained the interests of both parties. And, even today, it must be like that.

You can have a standard contract template for your company, but you should be flexible in case a customer asks for changes to any clause in the document.

Remember that you are in a negotiation and can follow your own rules – as long as it is not illegal or affects your business or product.

Avoid mistakes

Sometimes, the high demand from new hires can cause the data filling process to contain errors. This implies a delay in the subscription and, depending on the time lost, in the withdrawal of the client.

The collection of information to fill the contract must be done correctly, so you avoid errors and the consequent delay in sending the contract.

Use the sales team to collect data during customer contact, this streamlines the process.

Another tip, especially for B2B businesses, is to check the information collected on the IRS website using the CNPJ query.

Automate the process

At the beginning of this post, we commented on the fact that SaaS companies facilitate access and streamline the process of using technologies for customers. If the product is easy and accessible, why not also make it easier to hire it by automating the subscription?

Today there are companies (SaaS, inclusive) that allow documents to be signed electronically. You just need to send the finished contract to your customer, he will digitally sign it and send it back to you. This is a gain in agility and contracts signed in a short time.

These systems are secure and legally valid. Two companies that do the signing process very well are  Clicksign and DoYouSign.

Conclusion

With changing consumer behavior and access and management needs, service companies such as SaaS have a high chance of scalability and need to be ready to meet the high demands of customer input.

It’s not enough just to conquer, but to engage your customer. And the contract signing experience is the gateway to that. So follow our tips and avoid problems.

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