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Contracts have been around as long as people have. But that doesn’t mean your agreements should feel ancient – or still be moving at the speed of pen and paper. Unfortunately, for those still using traditional eSignature options instead of clickwrap agreements, that’s exactly the experience they receive.
When it comes to clickwrap vs. eSignature, there’s no comparison – eSignature is so 2003. You need agreements that are fast, dynamic, and capable of handling online transactions. And eSignature simply can’t keep up with the speed of business today.
Don’t believe us? Here are 10 more reasons why traditional eSignature agreements suck.
eBook Download: 101 Ways to Use Clickwrap
Today, the average contract costs more than $21,000 to complete – and with eSignature, costs rise every time an agreement is sent out for approval. Considering few contracts are accepted and signed after the first draft, this means you’ll accumulate expenses every time documents are sent back and forth for edits to make everyone happy. And, as we all know, time is money.
When an agreement takes too long to complete, terms frequently change and customers become more likely to jump ship. Even if you’re able to avoid a total loss by keeping your client at the table, traditional eSignature is a slow and inefficient way to finalize transactions.
Taking into account the average contract cost and the number of agreements a company handles every day, the inefficiency of doing business without a clickwrap agreement can cost you millions (or billions) of dollars every year.
The ‘Ink Mindset’ creates friction throughout the contract lifecycle, slowing every element of business down that it touches. While an eSignature doesn’t technically use ink, they embody the same mindset traditional pen-and-paper agreements always have: weeks spent on redlining, inefficient formatting, lengthy negotiations, etc.
Without the implementation of a clickwrap agreement, this traditional approach will always bog down your deals – preventing you from doing business in a way that maximizes online opportunities and transaction velocity.
In fact, our research shows that organizations using a Word-to-PDF contract flow completed by eSignature experience a two-week turnaround period between verbal commitment and purchase. For those using click-to-accept terms? Just 14 hours and 26 minutes.
Not all customers have a computer to sign your deals. Today, more than 40% of all online transactions take place on mobile devices – and that trend will only continue to rise moving forward. If you’re still relying on eSignature, that’s bad news.
The issue is traditional contract signing methods largely aren’t compatible with smartphones. So, any customer beginning their purchase on a mobile device will hit a wall when it comes time to close the deal.
Related Content: Accept Contracts via SMS with PactSafe
At that point, your potential buyers are faced with a choice: switch over to another device and start over, or find a clickwrap agreement-friendly competitor that offers a more convenient transaction process. Inevitably, eSignature will lead to lost momentum and dropped sales for your business.
While eSignature doesn’t involve pen or paper, these agreements feature a similar experience to traditional contracts. User experiences are typically slow, inflexible, and expensive to complete.
A clickwrap agreement, on the other hand, is a simpler, digitally forward option of presenting your agreements. using clickwrap over eSignature can actually reduce your deal cycle By moving away from eSignature, your business can take advantage of the high-velocity deals that take too long to handle manually.
Plus, these one-click solutions securely reinforces your legal terms too. Unlike eSignature, clickwrap gives you an extra layer of authenticity by creating data points and audit trails throughout the acceptance process.
If you lack the capabilities to let your customers assemble their own agreements, you probably won’t have the time to build a self-service checkout offering.
When analyzing the advantages of clickwrap vs. eSignature, the former gives your online shoppers a path to instantly accept a pre-approved set of legal terms and conditions that satisfy their needs. The latter, not so much.
By using clickwrap as part of a self-service checkout solution, your business can build and send personalized deals without slowing down the sales cycle or taking valuable time away from legal and technical teams. The end result? A customized contract that’s completed precisely how and when each customer prefers.
To maximize your conversion rate – and revenue growth – your agreements need to be accessible, secure, and easy to sign. But eSignature doesn’t offer any of these benefits, so why should you continue to use them for low value deals?
Your customers deserve a buying experience with a limited friction. That can be customized with ease. That can be completed at any time, on any device, from anywhere. And a clickwrap agreement gives you all of these advantages.
The only way to make your contracts scalable is to standardize agreements that eliminate the redlining process. But eSignature doesn’t promote the acceptance mindset that repeatable deals require.
A clickwrap agreement makes the scalable contract dream a reality by delivering your customers a pre-approved set of terms that can be accepted with the single click of a button. And – thanks to the Electronic Signatures Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) – these agreements are also as legally viable as a traditional signature.
Clickwrap vs. eSignature might as well be online vs. brick and mortar when it comes to your customer experience. While eSignature works like the digital version of a traditional contract acceptance, clickwrap helps you beyond this final step.
With a clickwrap agreement in place, your agreement terms can be hosted and managed in real-time online on signup pages, checkout flows, login pages, and more. That way, each transaction can be tracked to ensure users have “actively assented” to your terms via a direct action.
You shouldn’t be reinventing the wheel every time you make a sale. But eSignature often requires a new contract designed from scratch for every engagement – even if you’re selling the same products or services over and over.
Across your contract lifecycle, every touchpoint adds time (and cost) to the process. A clickwrap agreement introduces automation into every agreement, giving your customers the ability to create, alter, and complete their own contracts while reducing the internal resources required to make a sale.
Whether you work in sales, legal, product, or some other department entirely, a clickwrap agreement is the gold standard in contract acceptance. These next-gen experiences are purpose-built for high-volume, online transactions – and they offer your business three primary advantages eSignature can’t.
By using a clickwrap agreement, you’re offering a convenient and timely experience for your buyers. And a no-hassle transaction comes with tons of benefits: a shortened sales cycle, scalable contracts, and more efficient sales initiatives are just the tip of the iceberg.
Another advantage of clickwrap vs. eSignature is how quickly you can create low-value contracts. Clickwrap helps you accelerate this process by eliminating the potential for delays and manual data entry errors – giving your team more time and resources to focus on high-value deals instead.
A clickwrap agreement also means control for your legal team. With just a single click, buyers can accept your legal terms and your business can be automatically assured of successful enforcement that protects its bottom line.
So, are you ready to bring your contracts into the 21st century? Download our eBook, 101 Ways to Use Clickwrap, and learn how you can use clickwrap agreements to help your business in 101 different ways!