+1 (408) 320-0380

CRM vs ERP: Key Differences

The efficient running of any business usually requires a thorough planning and skilful management. Modern 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 company any more. So what is the secret ingredient of such an effective business management? All that wouldn’t be possible without such powerful business tools as CRM (customer relationship management) and ERP (enterprise resource planning), which help to establish strong customer relationships, manage business processes and increase the company’s profitability in general. Though being quite alike on its face, CRM and ERP platforms have several distinctive differences, which quite important to take into account when choosing one for your company.

What is CRM?

To put it simply, 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 connected with sales, marketing and customer service. The system keeps track of every interaction the company has with the client, which in result helps to build up healthy long-term customer relationships, increase customer loyalty and subsequently the company’s profit. Moreover, the software is indeed useful in nurturing leads and guiding them through the sales pipeline in order to transform them into regular customers.

What is ERP?

While CRM is more of a customer-centered software, ERP is more business oriented. The ERP software is primarily aimed at improving the efficacy of the business processes, so data is the main thing here. Providing a company with such basic functionalities as accounting, warehouse, inventory and supply chain, ERP allows sharing the information concerning real-time processes throughout all the departments rapidly. 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 solving the newly emerged problems within it.

What’s the difference?

Although having the same result, CRM and ERP systems use different approaches to increase a company’s sustainability, productivity and revenue. While CRM software will help you to enhance the income by raising the number of customers and sales volume, ERP will reduce costs spend on business processes by making them more efficient.

So, which one to choose? It all depends on the business type, its size and complexity. However, a CRM software can be a good start for boosting business growth and improving customer service. Customers are the backbone of any company and CRM system will help your company to interact with them. Maybe today is the perfect time to throw away all the doubts and give CRM system a try!