CRM vs ERP

Both CRM and ERP systems can handle contacts, quotes, orders, and forecasts, and both can manage line-item configuration, bundles, delivery schedules, and invoices.

So what is the difference, and where does CRM stop and ERP begin?

 

What Is ERP Software, And How Does It Work?

A CRM system is designed to help businesses manage their relationship with the customer, while an ERP manages the entire business cycle, including customers.

An ERP is a system built to enhance the efficiency of all business processes through automation and the reduction of manual operations.


ERP allows for the rapid sharing of information across the organization. Users enter data into the ERP system, creating a real-time, enterprise-wide overview.

Discrepancies will automatically create alerts in other affected areas. In short, ERP provides a method for streamlining business processes across the board by focusing on the data instead of the operations.

 

What Features do ERP Systems Normally Include?

Sales & Marketing

Purchasing

Human Resources

Inventory Management

Warehouse and Transport Management

Product Management

Planning and Production

What Is A CRM System?

A CRM system is designed to help businesses manage information related to customer interactions.


CRM systems can generate sales projections, nurture prospects through the sales funnel, manage invoices and communication efforts.


A CRM improves efficiency, increases sales, helps deliver accurate customer data, improves customer service quality, and enhances customer satisfaction and interaction levels.

 

A Few Main CRM System Features Are:

 

  • Automate and manage marketing campaigns
  • Analyze purchasing patterns
  • Offer high-quality customer support
  • Automate redundant tasks
  • Identify new leads
  • Streamline the sales process

The Main Difference Between CRM and ERP

The main focus of ERP is increasing efficiency by automating business processes across all departments in the organization. The primary CRM function is to improve customer interactions and client retention, while ERP improves internal processes.

The primary CRM users are the sales, marketing, and customer support departments. In contrast, ERP users are focused on streamlining internal organizational functions - supply chain, order management, finance, project planning, and more. In addition, CRM focuses on increasing sales, while ERP emphasizes improving the accuracy and effectiveness of the system.  

The main features of an ERP revolve around workflow management, scheduling, invoicing, inventory, PO, etc. On the other hand, a CRM is more about contacts & lead management and nurturing, social media integrations, marketing automation, etc.

 

What Is the Connection Between ERP and CRM?

ERP and CRM are both designed to automate and streamline business processes. A CRM system handles mainly the business' front-end, while ERP is involved in back-end process management. Therefore, ERP and CRM systems need to collaborate to streamline the business's front-end and back-office operations to work effectively and efficiently.

A CRM might be considered a subset of ERP. Most ERP systems will have some, if not all, CRM components. Integration of CRM functionality into the ERP software will bring out the best of both systems, helping automate and streamline interaction with the customers and deliver greater visibility of all stages of the business process.

 

Integration of ERP and CRM

ERP and CRM integration connects and synchronizes both systems to a single, unified database, ensuring an automated and consistent information flow between both systems to create a single source of truth.

 Benefits of ERP &CRM Integration

Customer Visibility

The organization will have access to all aggregated information to make smarter, data-driven decisions to maintain and improve business relationships with customers, whether sales, customer support, or marketing.

Improved Efficiency

An integrated ERP platform with prebuilt CRM system connectors or built-in CRM capabilities helps manage customer-related processes.

Enhanced Data Accuracy

An integrated platform eliminates inaccurate data, helping to improve business-wide data-driven processes.

Employee Collaboration

Track and Manage KPI’s to ensure the supply chain operation is at full capacity. Companies can measure productivity, costs, fill rate, on-time delivery rate, and customer satisfaction.

Streamlined Sales Processes

With real-time data access, sales and operations teams can accelerate the customer contracts approval process—maximizing business opportunities and delivering faster time to revenue.

Do I Need A CRM System, An ERP Software, Or Both?

While a CRM system drives sales and customer relations, an ERP system helps streamline operations and reduce overall costs. Combined, a CRM and an ERP can maximize business growth.

 

Today, you can easily find cost-effective cloud-based SaaS solutions that allow fast, automated, and secure ERP and CRM integration.

Your best bet is to move forward with a complete integration of your ERP and CRM solutions and gain the full benefits of your ERP and CRM investments.

 

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