CRM vs. ERP: What are the Differences?

Crm Vs. Erp: What Are The Differences?


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?

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

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?

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Sales & Marketing

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Human Resources

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Planning and Production

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Product Management

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Inventory Management

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Warehouse and Transport Management

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.

Main Crm System Features Include:

Main CRM System Features Include:

  • 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

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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.

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Improved Efficiency

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

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Enhanced Data Accuracy

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

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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.

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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.

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