Today, technology provides companies with the advantages they have never had before. Being able to monitor business processes, access data in real-time, analyse previous marketing experience, and plan future events is not an unattainable goal for a business any more.
In many cases, the secret ingredients behind effective business management are CRM (customer relationship management) and ERP (enterprise resource planning). Both tools help build strong customer relationships, manage business processes, and increase overall profitability. But even though these solutions share a common goal, they have several distinctive differences, which are quite important to take into account when choosing one for your company.
What is a CRM?
To put it simply, a CRM is a system used for managing interactions with current and potential clients. Focused on the customer side of a business, CRM software allows to organise, streamline, and automate all the processes associated with sales, marketing, and customer service. The system keeps track of every interaction the company has with a client, which, in turn, helps build healthy, long-term customer relationships, increase customer loyalty, and improve the company’s profit. Moreover, the software supports lead nurturing by guiding prospects through the sales pipeline and helping employees convert them into repeat customers.
What is an ERP?
While a CRM is more of a customer-centered software, an ERP is more business oriented. It is primarily aimed at improving the operational efficiency by integrating and optimizing core business processes. The system provides a company with basic functionalities for accounting, warehouse, inventory, and supply chain management and allows sharing the information concerning real-time processes across all departments quickly. In other words, it gives you a clear and accurate picture of what is happening in your company at the moment, which is helpful for detecting emerging issues and fixing them early.
What’s the difference?
Although both systems contribute to improving a company’s performance and revenue growth, CRM and ERP use different approaches to achieve that. While CRM software will help you enhance your revenue by attracting more customers and closing more deals, an ERP will reduce costs spent on business processes by making them more efficient and optimizing resource management.
So, which one to choose? The answer depends on your business model, its size, and complexity. However, a CRM software can be a good start for accelerating business growth and improving customer service. Customers are the backbone of any company and the CRM system will help your company understand and serve them better. Maybe today is the perfect time to throw away all the doubts and give the CRM system a try!