A new commissioned study conducted by Forrester Consulting on behalf of DocuSign, has found that when DocuSign eSignature technology is adopted within an organisation, the big winner is business process improvement.
While it’s easy to see how eSignature technology can improve the productivity of your internal processes, it’s been difficult for organisations to quantify the benefits in monetary terms. Until now.
Using in-depth financial modelling, Forrester recently conducted a study of DocuSign, to help users uncover the dollar value of incorporating esignature technology into their business.
The number one benefit Forrester observed, was a significant improvement to internal process productivity. This accounts for 47% of the total benefit of eSignatures and contributes a Monetary Net Present Value of $215,378.
The other highest percentage benefits were improved sales process productivity (17%) and reduced operational expense (36%).
Say ‘goodbye’ to antiquated business processes
If you consider the antiquated nature of the paper-based agreement process – one that relies entirely on pen, paper and post – you can understand why eSignatures contribute such a sizeable surge in productivity of internal processes.
The study also revealed that the old process of scheduling face-to-face meetings for document signing, was slowing down the completion of agreements significantly.
Equally, sales teams have historically relied on inherently slow postal services, for sending paper contracts to customers.
Banishing the time thief
The Forrester study found that a paper agreement is typically handled by an average of four internal staff members – two administrative staff and two executives. The combined time they spend on each paper agreement is 90 minutes – 30 minutes by each administrative staff member and 15 minutes by each executive.
Once implemented, DocuSign’s eSignature solution makes a significant difference to this time cost, with handling time dropping from 90 minutes to just 9 minutes per agreement. This drop in completion time means admin staff reclaim an extra 2,066 hours of productivity in just one year. Typically, executives reclaim an extra 1,033 hours of productivity, based on 150 monthly transactions. Meaning you have more time to invest in revenue generating work, or for discovering more time-saving features of DocuSign.
Reduce agreement errors
How many of your paper contracts have come back with errors and must be handled again in order to be corrected? Even with two admin staff overseeing the process, the Forrester study determined the average number of agreements Not-In-Good-Order (NIGO) to be one in four.
Once eSignatures were integrated into the organisation’s system of agreement, the NIGO rate dropped dramatically from 25% to just 2.5%.
What it’s worth
If you’re looking to quote a dollar value, Forrester’s in-depth TEI model found that the value of improved internal process productivity, added up to:
- $76,649 in year one,
- $86,844 in year two; and
- $98,394 in year three.
A projected total saving of $261,887 over three-years. But the value is more than just financial. The combined efficiencies and savings meant the organisations involved in the research study could confidently set and achieve a bold vision for the future – now free from the shackles of their outdated, paper-based agreement processes.
Why stop at eSignatures
The Forrester research offers conclusive proof that modernising your System of Agreement – whether on a small or large scale – offers businesses a competitive edge, is appreciated by staff and stakeholders, and can help improve relationships with customers.