Contract Management Software (CMS) Use Case

Background

The market for Contract Management Software (CMS) has been growing steadily in recent years, with no signs of slowing down. More than 237 CMS providers  now offer a wide range of solutions, making the market highly competitive. Regardless of the size of the CMS providers, there is constant pressure to differentiate solutions and products in order to grow market share.

 

Right now, the focus in the CMS sector is on improving user experience and design, optimizing pricing to attract new customers, and implementing effective marketing strategies. However, this approach has its downsides. Margins can become compressed and larger players can continue to dominate the market. Additionally, any innovations that a CMS brings to market can be quickly replicated by their competitors, given the relatively standardized nature of this software.

 

To stay competitive, CMS providers will need to continue to innovate and differentiate themselves in ways that add value to their customers. To dominate their chosen markets, however, CMS providers need to move beyond simply improving the current processes of contract creation and management. This is where Vleppo is the answer.

Current Challenges

  • Competition: Is fierce in the Contract Management Software (CMS) market, and emerging, mid-tier, and niche providers are at a disadvantage when compared to the dominant players. They not only have to match the high standards of UX/UI that the market demands but also exceed. This means constantly evolving and delivering new features to remain relevant, which can be costly both in terms of time and resources.

  • Pricing: Profit margins are also under significant pressure due to the intense competition. While the focus is on delivering superior UX/UI, data security, and customer service, less resourced CMS providers have to balance pricing and customer acquisition to retain their customer base. With few options to increase Average Revenue Per User (ARPU), providers must find creative ways to differentiate themselves from the competition.

  • Standardization: Organizations still view contract management as an interchangeable software, which means they are often unwilling to pay a premium for solutions that are readily able to be switched with other solutions. In this situation, regardless of UX and/or other features, CMS providers inevitably participate in a race to the bottom on price.

Alternative Approach: Change the rules of the game

Are you ready to reimagine the Contract Management Software (CMS) process? Any CMS provider has the potential to gain ground against their competition by revolutionizing the CMS process. Imagine if a CMS not only enabled you to create and manage contracts through their lifecycle but also allowed parties to hold funds in escrow and manage disputes in a safe and transparent way.

These two functions are absolute game changers. They move CMS providers beyond simply solving the problem of managing contracts to address critical commercial pain points of counterparty credit risk and proactively solving contractual disputes before they even occur. Customer credit risk and disputes can be costly for organizations when things go wrong, and they are a constant source of stress and worry for business owners.

Imagine being able to offer your customers an all-in-one solution that solves their most pressing commercial pain points.

Vleppo’s V-Contract API will provide you a competitive edge that will make your CMS stand out in the market delivering new customers and revenues.

Why does V-Contract make it possible?

Vleppo is a unique blockchain solution that’s designed specifically for CMS providers. Unlike other blockchain solutions, Vleppo has its own blockchain, and its V-Contract API makes it easy for CMS providers to integrate blockchain technology into their existing solutions. With V-Contract, CMS providers can achieve rapid digital transformation at a fraction of the cost and risk of implementing a dispute resolution and escrow function into their existing workflows.

The benefits of V-Contract are many, including:

  • A robust contract management framework that allows users to create, update, and settle contracts within well-defined rules that are governed by blockchain consensus.
  • An escrow capability that solves a critical pain point for businesses, particularly small-to-medium enterprises (SMEs). By unlocking additional revenues, CMS providers can increase their ARPU from existing customers while delivering a service that’s sure to enhance customer retention.
  • Providing a transparent and secure dispute resolution process, which is governed by blockchain, that offers yet another alternative source of revenue, increasing the share of wallet of their existing customer base.

Side by Side Comparison

Scenario: A user is acquired by your CMS and agrees to pay USD 80 per month. They conduct 1 contract per month with an average value of USD 5,000 per contract and 2 of these contracts go into a dispute state requiring mediation. Your CMS implements V-Contract and charges 1% escrow charge and USD 10 for facilitating mediation services. Below demonstrates how your CMS can increase its share of wallet from existing customers without increase in marketing.

Your CMS can significantly increase revenues from your existing client base without having to significantly increase your marketing budget. The above example also understates what could potentially be charged for your CMS service with the additional functionality. Overall, V-Contract provides multiple options to driving additional revenues.

Your CMS can significantly increase revenues from your existing client base without having to significantly increase your marketing budget. The above example also understates what could potentially be charged for your CMS service with the additional functionality. Overall, V-Contract provides multiple options to driving additional revenues.

The End Result

Our V-Contract API enables CMS providers to undertake digital transformation in a low risk, high impact way and in turn:

Provide a major point of differentiation against rivals.

Enable more flexible pricing structures which in turn leads to a greater share of existing customer wallet.

Diversify revenue sources away from pure SaaS sources.

Access Blockchain functionality over and above CMS centric solutions including document integrity, tokenization and other features that are only available via Blockchain.