Signature

What Is a Signature?

In B2B sales, a signature represents the final approval and binding commitment from an authorized decision-maker to proceed with a deal. It’s the moment when all commercial, legal, and operational terms have been agreed upon, and the buyer’s sign-off converts intent into a legally enforceable contract.

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Signatures typically happen via e-signature platforms like DocuSign, PandaDoc, or Adobe Sign. The signature is not just a formality—it’s the bridge between closing and recognizing revenue under compliance standards like ASC 606.

Why Signature Matters in B2B Sales

The signature is the finish line for Closing Deals Faster and Forecasting Accurately. Without it, pipeline stages like “commit” or “closed-won” remain unverified. A delay in signature execution can extend your deal cycle, misstate revenue timing, or cause last-minute risk review holds.

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In high-velocity SaaS, signature velocity is often the clearest indicator of operational discipline between sales, legal, and finance. Reducing friction in this stage directly accelerates your ability to hit your number and build a sales machine that executes predictably.

How to Use Signature in Your Sales Motion

1. Confirm Signatory Authority Early

Verify the buyer’s authorized signer during discovery or the proposal phase. This prevents late-stage surprises when procurement or legal requires alternate signoffs.

2. Align Internal Stakeholders

Ensure cross-functional readiness—RevOps for pricing accuracy, Legal for term review, and Finance for compliance alignment. Use checklists or pre-signature gates within your CRM to track status.

3. Use Digital Signature Tools

Adopt e-signature software integrated with your CRM to eliminate manual tracking. Configure templates for term sheets, MSAs, and SOWs so each new deal follows an approved process.

4. Track Signature Status in Real Time

Monitor signature activity (sent, viewed, signed) within your deal tracking dashboards. Notify AEs automatically when documents stall to reduce end-of-quarter delays.

5. Close and Trigger Next Steps

Once the contract is signed, automatically update deal status to “Closed-Won,” notify implementation or customer success teams, and sync signed copies to your document repository.

Key Metrics and Benchmarks

• Signature Velocity: Average time from contract sent to signed. Best-in-class SaaS targets 1–3 days; enterprise motions may average 5–10 days.
• Signature Drop Rate: Percentage of deals with unsigned contracts after verbal approval. Should remain below 10%.
• Contract Accuracy Rate: Percentage of contracts executed without revision due to errors. Above 95% indicates strong pre-signature review discipline.
• Quarter-End Compression: Ratio of signed deals within last week of quarter. Aim to reduce dependency on last-minute signatures for healthier forecasting.

Common Mistakes and How to Fix Them

Frequently Asked Questions

Who typically signs the contract in B2B deals?

Usually, the authorized signer is at the VP or C-level in enterprise accounts, or the procurement manager for mid-market deals. Always verify signatory authority before sending documents.

How can sales leaders reduce signature delays?

Standardize your contract workflow. Use approved templates and integrate e-signature platforms so reps avoid manual follow-up cycles.

What happens if a signer changes near deal close?

Update your CRM and legal team immediately. Revalidation of terms or countersignature might be required to maintain compliance and enforceability.

Should verbal agreement count in forecast commits?

No. Only a completed, signed contract confirms legal and financial commitment. Including unsigned deals skews forecast accuracy.

How can digital signature analytics improve forecasting?

Viewing metrics like “time-to-sign” and “open rate” helps identify bottlenecks, quantify deal risk, and refine forecast confidence levels across segments.