DocuSign CLM: Using the "Compare" feature to see redlines between versions

Introduction to DocuSign CLM

In the fast-paced world of contract management, businesses rely on robust tools to track changes, ensure compliance, and streamline negotiations. DocuSign’s Contract Lifecycle Management (CLM) platform stands out as a comprehensive solution that integrates electronic signatures with advanced document workflows. At its core, CLM helps organizations automate the entire contract process—from drafting and negotiation to execution and storage—reducing manual errors and accelerating deal cycles. A key feature within DocuSign CLM is the “Compare” tool, which allows users to visualize redlines (tracked changes) between document versions, making it easier to spot revisions during reviews.

This functionality is particularly valuable for legal teams, sales professionals, and compliance officers who need to maintain version control without sifting through lengthy documents manually. By highlighting additions, deletions, and modifications in real-time, the Compare feature enhances transparency and collaboration, ultimately supporting better decision-making in contract negotiations.

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Understanding DocuSign CLM

DocuSign CLM is an enterprise-grade platform designed to manage contracts end-to-end. It builds on DocuSign’s eSignature foundation by incorporating AI-driven insights, template libraries, and obligation tracking. For businesses handling high volumes of agreements, CLM offers centralized repositories, automated workflows, and integration with CRM systems like Salesforce. Pricing for CLM typically falls under DocuSign’s Advanced or Enterprise plans, starting around $40 per user per month annually, with custom add-ons for features like identity verification.

One of the platform’s strengths lies in its negotiation tools, where the Compare feature plays a pivotal role. Redlining, a common practice in legal drafting, involves marking changes to show what has been added, removed, or altered. In DocuSign CLM, this is digitized to prevent disputes and ensure all parties agree on final terms.

How to Use the “Compare” Feature for Redlines

To effectively leverage the Compare feature in DocuSign CLM, users start by uploading or creating documents within the platform. Here’s a step-by-step guide based on standard workflows:

Step 1: Access Your Contract Repository

Log into DocuSign CLM and navigate to the “Contracts” dashboard. Select the agreement you want to compare. CLM automatically versions documents as changes are made, storing up to 100 versions per contract depending on your plan. This ensures a complete audit trail, compliant with standards like ESIGN and UETA in the US.

Step 2: Initiate the Compare Function

From the contract details page, click on the “Versions” tab. Choose the two versions you wish to compare—such as the original draft and a revised counterpart. Select “Compare Versions” from the dropdown menu. The tool uses side-by-side or overlaid views to display differences, with redlines appearing in color-coded formats: red for deletions, green for additions, and yellow for modifications.

Step 3: Customize and Analyze Redlines

DocuSign CLM allows customization of the view. Toggle options to focus on specific sections, like clauses or metadata. The platform’s AI assists by summarizing changes, flagging potential risks (e.g., liability shifts), and generating reports. For instance, if a non-compete clause is altered, the redline will highlight the exact wording change, including who made it and when.

Step 4: Collaborate and Resolve

Share the compared view with stakeholders via secure links. Team members can add comments directly on redlines, accept or reject changes in bulk, or export to PDF for offline review. Once resolved, merge versions into a clean final document ready for eSignature.

Best Practices for Redlining

From a business perspective, integrating the Compare feature early in the lifecycle minimizes rework. Legal departments report up to 50% faster negotiation cycles, as per industry benchmarks. However, for global teams, ensure documents comply with regional laws—e.g., eIDAS in the EU requires qualified electronic signatures for high-value contracts. Limitations include occasional glitches with complex formatting in scanned PDFs, which may require pre-processing.

This feature’s precision is a boon for industries like finance and real estate, where accuracy in redlines can prevent costly litigation. In practice, users in mid-sized firms often pair it with templates to standardize comparisons across deal types.

Benefits of the Compare Feature in Business Operations

The Compare tool not only saves time but also fosters trust in negotiations. By providing a clear visual of revisions, it reduces miscommunications—critical in B2B deals where contracts can span dozens of pages. Analytics within CLM track redline frequency, helping managers identify bottlenecks, such as recurring edits in indemnity sections.

For enterprises, this integrates seamlessly with DocuSign’s API, allowing automated comparisons in custom workflows. Overall, it positions DocuSign CLM as a scalable solution for growing businesses, though costs can escalate with high-volume usage.

Competitive Landscape: eSignature and CLM Providers

In the eSignature and CLM market, DocuSign leads with its mature ecosystem, but alternatives offer varied strengths. Here’s a neutral overview of key players.

DocuSign

As discussed, DocuSign excels in global reach and integrations, with CLM enhancing its core eSignature capabilities. It’s ideal for US-centric firms but can face higher costs in APAC due to add-ons.

Adobe Sign

Adobe Sign, part of Adobe Document Cloud, focuses on seamless integration with PDF tools and creative suites. It supports redlining via Acrobat’s compare function, with plans starting at $10/user/month for basic eSignatures. Strong for marketing and design teams, it emphasizes mobile signing but lacks DocuSign’s depth in CLM automation. Compliance covers ESIGN/UETA and eIDAS, though API access requires higher tiers.

eSignGlobal

eSignGlobal positions itself as a APAC-optimized alternative, compliant in 100 mainstream countries worldwide, with particular advantages in Asia-Pacific regions. APAC electronic signature regulations are fragmented, featuring high standards and strict oversight—unlike the more framework-based ESIGN/eIDAS in the US/EU, which rely on email verification or self-declaration. In APAC, solutions demand “ecosystem-integrated” approaches, including deep hardware/API integrations with government-to-business (G2B) digital identities, raising technical barriers far above Western norms.

eSignGlobal addresses this through native support for tools like Hong Kong’s iAM Smart and Singapore’s Singpass, ensuring legal validity without extra fees. Its Essential plan costs just $16.6/month ($199/year equivalent), allowing up to 100 documents for eSignature, unlimited user seats, and verification via access codes—all on a compliant, cost-effective basis. This makes it competitive globally, including in the US/EU, as part of a broader replacement strategy against DocuSign and Adobe Sign.

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HelloSign (by Dropbox)

HelloSign offers straightforward eSignatures with basic redlining via Dropbox integration. Pricing starts at $15/month for individuals, scaling to $25/user/month for teams. It’s user-friendly for SMBs but limited in advanced CLM features compared to DocuSign.

Comparison Table

This table highlights trade-offs: DocuSign for robustness, Adobe for integration, eSignGlobal for affordability in regulated regions, and HelloSign for ease.

Conclusion

DocuSign CLM’s Compare feature remains a reliable tool for redline management, aiding efficient contract handling. For businesses seeking alternatives, especially in compliance-heavy areas like APAC, eSignGlobal offers a neutral, regionally attuned option as a DocuSign substitute.