Top 5 Benefits of Clickwraps for SaaS Businesses

Top 5 Benefits of Clickwraps for SaaS Businesses (1).png

Self-service signup is in integral part of user growth

The majority of Software as a Service (SaaS) apps rely on self-service signup where users can either access the platform first through a free trial or be invited to the platform by a colleague asking them to join an existing account.  Essentially, this exchange allows the business operating the SaaS application to generate a license for the user, which in turn grants them access to the application. 

Clickwrap agreements are more important than you might think

As part of the signup process, it’s common for both the user and the business to agree to a mutual set of terms and for the business to capture the users consent.  

This provides certain protections for both the business and the user. Most commonly users are consenting to the terms and conditions, privacy policies or acceptable use policies as part of the signup process.

This process of checking a box to accept a website or applications terms is referred to as a clickwrap or click through agreement. While it may seem like an afterthought, a clickwrap agreements can be a useful component for accelerating user and sales growth and also provide critical business protection against litigation.

Per US e-signature law, a click is totally enforceable method of contract acceptance when tracked and displayed properly. 

Benefits of using clickwrap for SaaS companies:

1. Speeds up Sales processes

Whether that is via website or in person, clickwraps allow your sales team to get to a “yes” from customers quicker than any other type of agreement. There’s no longer a need for a customer to download a PDF, make or type a signature or initial multiple lines. The quicker a customer can say yes to your service or product, the quicker they can move onto actually utilizing your business! 

2. Improves user experience

Think about the last time you signed up for a new app: what kind of information were you asked to provide? How easy was it to create your account? Minimize friction for your customers and making it easy to do business with you goes a long way toward creating lasting customer relationships. Clickwraps are an efficient, secure way of getting customer consent, and can benefit SaaS businesses greatly.

3. Saves your development team hours of work

There are a lot of factors that go into collecting and managing user consent and building an in-house solution can be costly and time consuming. Not to mention, staying in compliance with e signature law isn’t likely a priority of your in house tech team.  Using technology similar to PactSafe’s Signature Acceleration Platform, allows your development and IT teams to focus on new features and functionality for your users and not on the needs of internal customers like the legal team.  A comprehensive clickwrap solution should offer a flexible API allowing the experience to flow seamlessly into your existing signup flow.

4. Provides piece of mind & reduces legal expenses

With a comprehensive clickwrap solution a digital record can be created verifying the contract version, completion date, and signer identification within seconds. Digital recordkeeping makes this information readily available any time any place--no need to worry about querying a database or recreating old versions of your signup flow to avoid a lawsuit.  Poor record keeping has cost one online business nearly 42 million dollars in settlement fees - an avoidable outcome with just a few simple steps. Lawsuit or no lawsuit your legal team will still save additional time with reduced redlining, faster ediscovery and better version control.

5. Increases customer renewals and upgrades

Automated digital record keeping does even more than verifying the details of every single one of your signatures--it also notifies customers when the contract is close to expiration. This way, instead of embarking on an in-person trip to renew the product (which, of course, is sometimes necessary) the contract can be renewed in a matter of seconds with a single click. If your customer is already satisfied and has no changes to make for doing business in the following year, this is a great renewal strategy! You maintain business while also saving lots of time.

5. Reduce customer disputes

In the event that a dispute such as a premature cancellation or chargeback does arise, having the appropriate digital “paper trail” will minimize your risk and help you prove that the user in fact did consent to your terms. PactSafe automatically generates a PDF of copy acceptance for your users. This document along with tracking data that proves when, where and how a user accepted your terms can be used to both enforce agreed-to provisions during the sales process and also help promote clarity and understanding with customers.  

What are you waiting for? 

Whether you're considering building your own clickwrap solution or utilizing a platform to do so, one thing is certain - you need to be utilizing clickwrap agreements to capture consent on your website or app. Overall, by implementing a clickwrap method into your SaaS application, you will leave very little room for legal mishaps and, in turn, keep your customers happy.  

Follow these best practices when implementing the clickwrap solution of your choice for your SaaS business.


Learn more about how you can reimagine contracts. 


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