Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) have many similarities but different core functionalities. Both are a unique business solution used to increase profitability, revenue and productivity.
Wondering how ERP differs from CRM, follow this blog to get a crystal-clear understanding of both CRM and ERP difference concepts.
What Is CRM?
CRM is a tool that enables you to create a database with the details of your prospects and clients. The data is accurate and can be easily shared throughout the organization that helps to improve the relationship with customers and clients of the organization
Features of CRM:
The main target of CRM is to assist leads and take care of client experience with the organization. Thereby transforming users into a prospect and hopefully making them a returning customer.
CRM used by the sales and marketing team for
- 1. Automate business marketing process.
- 2. Manage marketing campaigns.
- 3. Identify potential sales leads
- 4. Offer high-quality customer support.
- 5. Reduce mundane work.
- 6. Track customer interactions.
- 7. Manage customer contacts and prioritize leads.
- 8. Assist to manage inventory
- 9. Create rich financial data reports.
- 10. Assist to maintain social media channels.
What Is ERP?
ERP is a centralized business management software that integrates the functionality of different business processes such as finance, HR, inventory management and distribution. Thus, improve and streamline the entire company and its processes.
Features of ERP:
ERP creates a real-time, enterprise-wide snapshot that allows the executives, managers, and employees of the organization to share accurate and standardized details instantly. An exclusive feature of ERP is that it can create alerts and updates in every department of the organization that lets the organization to optimize its resource and streamline their business process.
- a. Strategy creation and tracking real-time business process information.
- b. Accounting and financial management
- c. Inventory and logistics management
- d. Shipping and payment details management
- f. HR and asset management
- g. Distribution process management
- h. Automate employee lifecycle.
- i. Improves the accuracy of financial data
- j. Forecast business needs
- k. Facilitate better project planning.
Deciding between a CRM or an ERP system for your business
For companies who need to scale their business, they often wonder which to choose an ERP or a CRM system. Since, both the system has its unique features with the advantages. We tell you that, if you want to drive your business with accurate efficiency you will need an ERP system and if you want to increase sales with profit then you will need a CRM system.
On the other hand, if you want to increase scale as well as drive your business efficiency with the reduced cost then you need both the system. For that, we advise you to get a customized ERP system with the features that you need from the CRM. In Tranetech software solutions, we consult with our clients for a deep understanding of the requirements then give them fully customized software solutions that will streamline their business process. For more ideas with details, contact our expert team.
Final thoughts:
CRM and ERP both are great tools for increasing your organization’s growth. Still, they developed for the varying purpose that is CRM for sales and ERP for reduced overall operating expenses. When you integrate these systems individually it would be helpful but could limit the potential of your business to a narrower growth.
On the other hand, when implemented together, the company can experience better revenue with increased sales figures. Further, CRM and ERP both are compatible. E.g.: If you need the features of the CRM, accounting software in your existing enterprise ERP then you can easily integrate the CRM with the existing ERP. That implies you can enjoy everything integrated into the same platform.
Still having a dilemma on choosing the solution that is suitable for your business? Contact us today to solve your business needs and we will help you increase your profits.
