10 eSignature Facts and Statistics You Need to Know
By Tamara Shasha
eSignatures are legally recognized in the UK, USA, and the EU. Since the pandemic, more laws and regulations have been passed to enable eSignatures to be acceptable. The UK recently signed a trade deal with Norway and Iceland, with provisions dedicated to digital trade. Therefore all documentation can be signed electronically, making it the most advanced free trade deal to date. With governments and other organizations optimizing the use of digital tools, many businesses are still using physical signatures which are not tamperproof, a threat to the environment, and time-consuming. Below we’ll discuss 10 facts and statistics which might enlighten you about eSignatures.
1. eSignatures have the same legal standing as handwritten signatures
The passing law of ESIGN Act, 2000 and UETA gave eSignatures the same rights as handwritten signatures. However, these laws state that there must be consent with eSignatures. This is where the parties involved have to sign a UETA disclosure before they sign. Nevertheless, in 2020 46% of businesses introduced eSignatures into their digital workflow, as there was increased awareness for the legal acceptance of the product. As with physical contracts, electronic documentation needs to be kept secure from tampering. Though, when using eSignatures, businesses usually use a third party, ensuring that documents are tamper-proof. Therefore there is less room for human error, as businesses are using software that ensures the documentation is compliant.
2. eSignatures are cost-effective and time-efficient
Digitizing contracts by introducing eSignatures into your business can save up to $15 per transaction. By eliminating the cost of printing, scanning, paper, and ink, this could be spent on other business areas, which could have a significant impact. In addition, introducing eSignatures saves employees time, as they no longer have to follow up with customers. Also, when documentation is digitalized, this removes the anxiety for misplacing essential documents. In 2020 when businesses introduced eSignatures, there was a 66% reduction of missing files.
3. eSignatures are instant
The digital age has put pressure on businesses to keep up with the latest technology. Therefore companies can now adopt the software of eSignatures, which enables consumers to sign documents from the convenience of their phone via a text message. By allowing customers to sign documents from any geographical location, all contracts can now be signed in real time. Additionally, customers now signing documents in real time via smartphones have resulted in a 24% growth in the eSignature market.
4. 37 minutes vs. 5 days is the time difference between eSignatures and handwritten
Incorporating eSignatures into the workflow has now been proven to be effortless. This solution is easy to use for all stakeholders, as customers can sign documents in real-time. Moreover, businesses that are using eSignatures now have more time to spend on business areas, as employees do not have to follow up with customers.
5. Customers are more likely to sign eSignatures
More industries are starting to use eSignatures, as when the product was adopted, businesses saw a faster turnaround time. eSignatures are fast and compliant with all smartphones and tablets, making them accessible to sign. Customers are more likely to experience misunderstandings and errors when signing physical documents, making them reluctant to sign, therefore prolonging sales. Businesses that have switched to using eSignatures have a faster turnaround time and a 90% completion rate following the transaction.
6. eSignatures ensure security in your business
eSignatures are robust against fraud, as when customers sign the documentation, it is then encrypted. After the consumer signs the eSignatures is stored in a secure CRM, whereas paper signatures can be lost or misplaced. As the document is stored in a cloud, the documents are tamper-proof, whereas physical signatures can be easily frauded. The verification and identification process have also made it easier to collect valid signatures. However, before users are given access to documents, they will be given a one-time password for ID verification. Businesses can also use GPS tracking devices and time stamps. This feature enhances the security of the documentation.
7. eSignatures are environmentally friendly
As climate change has become more significant and with government restrictions on climate change, making these small changes to digitalizing businesses will have a significant impact. Customers who feel strongly about the environment are more likely to sign with a company that only uses digital tools to ensure they are not contributing to the rising Co2 emissions. Using an eSignature solution can save as much as 2.5 billion trees in less than 20 years.
8. eSignatures improve productivity
When eSignatures were introduced into the workflow, they increased productivity by 80%. eSignatures have helped to shorten the duration of projects by 89.9% and improved communication amongst employees by 87.1%. Open communication in the workplace is critical for success. With nine in ten people suffering from workplace stress, introducing digital tools helps co-workers to work coherently. Also when introduced into the workflow, 75% saw these improvements amongst employees.
9. eSignatures enable self-serve mode
During the pandemic, 96% of B2B organizations changed their operations to self-serve mode to enable contactless operations. As eSignatures are mobile, this allows flexibility for both the customer and business, as customers can sign documentation at their convenience. Making signing documentation easy and quick for the customer is essential as 60% of sales are lost due to poor customer service. In addition, businesses had experienced a 500% customer loyalty increase when eSignatures were introduced into the workflow.
10. Businesses who use eSignatures are more profitable
Businesses that adopt digital tools tend to be more profitable as they make the customer experience easy and efficient. Since 2016, there has been a 747% increase in businesses using the eSignature tool. Focusing on the customer to reach digital completion, are most organizations' primary goal. To install eSignatures correctly, companies tend to use a third-party source when they have enabled digital tools to help consumers navigate. Some third-party sources are agent-guided. This means rather than calling the business and using more of the employee's time; an agent will guide the customer through completing the documentation. This is so it is completed error-free. Therefore the customer journey is shorter, and sales can be completed efficiently.
The bottom line
As eSignatures have the same rights and are secure to use, more organizations should be adopting this tool. Businesses have proven to be more successful, productive and have saved organizations’ money and time. The pandemic has shown that eSignatures are easy to use, as this was the only way that business could continue in most industries. Legal firms now prefer to use eSignatures, as it enables lawyers to work remotely, and now they are using their time effectively rather than having to follow up with clients. eSignatures are environmentally friendly, and more governments are starting to implement them as they lower co2 emissions and are also more secure than physical signatures.
The significant increase of businesses adopting eSignatures presents the success of the product. With customers finding this tool easier to navigate, eSignatures are the way forward to ensure company growth. To learn more about Lightico's eSignature, eForms, documentcollection, visit lightico.com.
Start Completing at the Speed of Lightico
Instant eSignatures, Payments, Document Collection & More
The most helpful thing about Lightico is the fast turnaround time, The upside is that you are giving your customer an easy way to respond quickly and efficiently. Lightico has cut work and waiting time as you can send customer forms via text and get them back quickly, very convenient for both parties.
"Great Service and Product"
I love the fact that I can send or request documents from a customer and it is easy to get the documents back in a secured site via text message. Our company switched from Docusign to Lightico, as Lightico is easier and more convenient than Docusign, as the customer can choose between receiving a text message or an email.