Benefits of Using Clickwrap Contracts
There are many benefits to using clickwrap agreements for your business. Also known as clickthrough agreements, click-to-sign, and click-accept, these agreements handle large volumes of many types of contracts well.
Effective contract management gives you the power to create, manage, and implement clickwrap contracts for your business. Clickwraps help scale your transactions and create contract automation on a large scale. Clickwrap agreements provide you with many benefits to your bottom line and overall efficiency.
Contract acceptance is an important stage in the contract management lifecycle. Clickwrap streamlines this part of the process and makes contracting more effective. The benefits of choosing clickwrap over other types of agreements are many.
Benefits of clickwrap in businesses
A clickwrap is a single-click acceptance method for online and digital contracts. Users check a box or click a button that says “I agree,” and the click itself is a legally binding electronic signature.
Clickwrap agreements are especially crucial for B2B companies. Customers want an easy-to-navigate website, and they do not want to face cumbersome legal agreements that interrupt their experience. They want the process to be quick and smooth—or they may take their business elsewhere.
In most transactions, customers need to accept a website’s terms and conditions to protect the company’s legal rights. The act of acceptance must also trigger the collection of contract acceptance data. These are records that show when the agreement was signed, who signed it, and what version was live at the time of signing. A comprehensive clickwrap solution does all of this at once.
B2B businesses can also see a significant boost in revenue generation when using clickwrap agreements as compared to other types of electronic signatures. Clickwraps are simple to use, encouraging acceptance by creating a seamless acceptance process. Other benefits that help build revenue include:
- Reduction in negotiation: Business agreements often require negotiation the first time they are accepted. Recurring acceptance often requires little to no further negotiation. A set business deal—such as a license agreement—can renew easily with a single click.
- Improve renewals: A clickwrap agreement can automatically prompt a business to renew the contract and continue doing business with your company. The software uses the contract renewal date and terms to create reminders for your company and the client. It can even set reminders or prompt the other company to renew the contract.
- Provides reasonable notice: Making sure your contracts are enforceable is key when dealing with other business entities. A clickwrap agreement is legally enforceable when it follows best practices such as providing reasonable notice. Business entities are generally expected to know what they are signing. Still, a well-formed clickwrap agreement secures clear assent to the terms of the agreement to ensure it is enforceable.
1. Easy signing
Unlike wet signatures or traditional electronic signatures, clickwrap agreements are digitally native. Clickwrap agreements can even be accepted by text messages and other digital means.
Digitally native signatures also reduce contract turnaround time. This is true whether the contract is a simple Terms and Conditions update or part of your sales strategy. Creating a single approval hub for non-negotiated contracts allows different departments to work efficiently and use different platforms when negotiating with counterparties. Instead of sitting around in Legal, clickwrap agreements help expedite the acceptance process.
2. Versatile workflow inclusion
Another great benefit of clickwrap agreements is that you can add them anywhere in your transaction workflow. A clickwrap agreement can be inserted anywhere in the workflow without risking enforceability. It can significantly reduce the number of repetitive actions needed to complete the agreement.
3. Built to handle high-volume acceptance
In an increasingly digital business world, high-volume contract acceptance is a key feature of a successful business. You can build an effective system to handle thousands of contracts a day (or more). Clickwrap agreements help facilitate high-volume contract acceptance by:
- Automating contract acceptance
- Automatically recording important acceptance information needed to enforce agreements
4. Automatic audit trail creation
A clickwrap automatically creates an audit trail of evidence needed to enforce these agreements. Recording and managing this data manually or in outdated systems can be difficult. If you are handling high volumes of contracts, you need a system that automatically tracks proof that the user accepted the terms. An automatic audit trail can help maintain key evidence like:
- Screenshots of the clickwrap signature process
- Dates and times that the user signed via the clickwrap agreement
- The version of the contract the user signed
- The clickwrap agreement terms that manifest affirmative assent
- The design and layout of the screen
5. Seamless customer experience
Customers tend to equate hard-to-use websites with low-quality businesses, and it can make them doubt whether they want to purchase from your company, especially during check out. If accepting the agreement is difficult, the customer may call it quits. A clickwrap agreement provides a frictionless way to collect acceptance without interrupting consumers’ lives.
This benefits you and your customers. Customers expect a seamless experience from a website—no matter what they use it for. Whether they are reading an article or shopping for shoes, they do not want anything complicated in their way. They may click “I accept” without further thought if the experience is easy enough.
When you make the acceptance process easy, you maintain a smooth experience for your customers. The result is a higher retention rate on your website and a higher likelihood that a consumer will purchase from you over a competitor.
Clickwraps can benefit your business
Clickwrap agreements provide many benefits you can use to improve your company. They provide a seamless experience for your customers and your staff. This seamless experience better captures contract acceptance in a high-volume sector and makes it easy to modify terms. With a digitally native contract, you are empowered with data metrics and an easy-to-use acceptance method. Clickwraps can empower you to handle high-volume contract acceptance smoothly while ensuring the enforceability of your agreements.