Hubspot and Freshworks Rank Highest in TermScout’s 1st Annual Rankings for CRM Industry’s Contracts

• Contract review platform, TermScout, publishes first annual contract rankings list for customer favorability across the software services industry - CRM category
• NutShell, MailChimp, Zoho, Active Campaign, and Insightly have been rated among the most vendor-favorable contracts in the CRM category

Denver, CO (March 30, 2023) – TermScout, the AI-based contract data and review company, today announced its first annual rankings for company contracts across the software services industry in the CRM category. As companies look to cost-cutting and efficiency gains, vendors providing customer-favorable terms are likely to see deals close faster and have higher rates of customer satisfaction and retention.

HubSpot and Freshworks ranked first and second on TermScout’s Top 10 “Most Customer Favorable” rankings in the CRM category, earning a 70% customer-favorable rating. By contrast, vendors at the opposite end of the spectrum are asking their customers to sign contracts that are rated up to 100% vendor favorable.

“When we look at vendor contracts, we leverage TermScout reviews and rating data to help us quickly understand which vendors are going to be easy to work with, and which ones are going to require extensive negotiations,” said Connie Brenton, VP of Law and Technology at Netapp. “The companies at the top of the list here have clearly gone out of their way to make it easier to do business with them, and their customers appreciate that effort.”

The official CRM rankings list (as of March 7, 2023)

The Five Most Customer-Favorable Contracts Were:

1. HubSpot
2. Freshworks
3. Workbooks
4. Microsoft
5. Salesforce

In addition, NutShell, MailChimp, Zoho, Active Campaign, and Insightly were found to have among the most “Vendor-Favorable” contracts reviewed by TermScout. Contracts in this tier are more than 60% beneficial to the vendor, according to the TermScout proprietary scoring algorithm. These company contracts tend to include some combination of one-sided, vendor-leaning clauses such as broad rights to use customer personal information, limits on vendor liability with no exceptions, as well as a lack of commitments to third-party, industry-accepted data protection standards.

Contracts are an essential part of any business, and TermScout strives to make the negotiation process faster, simpler, and more equitable for all parties involved. The platform compares millions of data points from thousands of publicly available contracts, automatically updating its contract database by the second and providing a platform that reduces negotiations by up to 30% and highlights contract improvements with 99% accuracy.

“Companies ranked as customer favorable show exceptional care in writing contracts that put their customers first,” said Otto Hanson, CEO and co-founder of TermScout. “Our hope is that others across the CRM industry, and more broadly across other software services categories, who haven’t made this year’s list can be inspired by these rankings. With better and more equitable contracts, companies can close deals faster and ensure seamless negotiations.”

Four additional category rankings are expected to be released before the end of the year and will include the AI, Cloud, HR, and ERP categories.

NOTE: Ratings are determined based on the contracts that were available on a vendor’s website two weeks prior to the rankings announcement. For more details on the rankings, methodology, and other key findings, please see the 2023 CRM Contract Favorability Market Report. To view TermScout’s full list of “Most Customer-Favorable” companies in the CRM category, click here.

About TermScout

Founded in 2018, TermScout is the contract review platform fixing how businesses make deals. The company’s platform makes contracts easier to understand, faster to sign, and fairer for all parties involved. The technology is powered by sophisticated AI and machine learning techniques trained on the world’s largest human-reviewed contract dataset. The AI-powered, human-backed contract review platform lets users quickly understand what a contract means, identify red flags buried in fine print, and compare their paper against other companies to ensure best-in-class terms for more efficient and equitable negotiations. TermScout is backed by NFX, GroundUp Ventures, Techstars, HillTop Ventures, The LegalTech Fund, Bridge Investment Group, and Underdog Labs. Learn more and try TermScout for free at termscout.com.

Media contact:

Rick Liebling

VSC on behalf of TermScout

termscout@vsc.co

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Rick Liebling

PR

VSC on behalf of TermScout

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