ERP vs CRM. Differences and similarities between an ERP software system and a CRM solution
- ERP software vs CRM system
- What does CRM (Customer Relationship Management) mean?
- How does a CRM solution work?
- Benefits of CRM software
- What does ERP mean?
- How does an ERP system work?
- Benefits of ERP software
- ERP CRM solutions - Differences
- Similarities between CRM and ERP systems
- ERP vs CRM? How do you choose the right software solution for your business?
- Examples of ERP software systems with CRM functionalities
Enterprise Resource Planning (ERP) software and Customer Relationship Management (CRM) software are similar in concept, but their roles differ significantly. ERP CRM solutions facilitate information sharing among a companys employees and provide managers with detailed reports on performance. In addition, both CRM software and ERP systems help achieve the objective of increasing company profitability, while also boosting sales and reducing costs.
ERP software vs CRM system
What does CRM (Customer Relationship Management) mean?
CRM is a specialized software system for managing all relationships and interactions with customers, covering both external and internal activities. Moreover, CRM is an application used to organize, automate, and synchronize various operations within sales, marketing, customer service, support, and more.
Customer Relationship Management (CRM) is a strategic approach to the management of customer relationships, with the main goal of developing and maintaining long term and profitable relationships with a companys customers through the efficient management of their information. In this way, organizations can increase sales, run better targeted marketing campaigns, and ultimately improve business efficiency.
How does a CRM solution work?
A CRM system gathers, analyzes, and stores all customer and prospect information, creating a detailed and comprehensive database. Whether the data is collected automatically or entered manually, companies can provide employees with a complete perspective on customer interactions, optimizing business activity and increasing profitability.
A CRM application enables the collection of customer data, such as demographic information, purchasing preferences, behavior patterns, contact details, and purchase history. It also stores detailed notes on interactions, offering a complete and up to date view of each individual customer.
Benefits of CRM software for customer relationship management
- Greater control over sales teams and the results achieved
- New business opportunities, improved customer relationships, and increased customer loyalty
- Increased performance by adjusting and optimizing marketing strategies
- Better communication between the companys employees
- Quick access to relevant information
- Increased accuracy in the billing process
- Efficiency in all business decisions
What does ERP (Enterprise Resource Planning) mean?
ERP is a software system designed for the integrated management of processes and operations across different business areas such as procurement, sales, accounting, production, customer relations, project management, and other activities. In short, an ERP program enables the management of all company resources for the efficient operation of the business.
An Enterprise Resource Planning system centralizes all information into a single and integrated platform, facilitating the automation, monitoring, and control of all company activities. In addition, ERP software can be extended to fields such as inventory and order management, supply chain management, and managing information about service providers.
The implementation of an ERP solution is possible in any organization and can be adapted to various types of activities such as distribution, production, services, retail, or e commerce.
How does an ERP system work?
An ERP application aims to optimize business processes and activities through the automation of a wide range of operations and by establishing connections between the database and users. This happens through optimal resource planning, connecting multiple processes within organizations, and streamlining the data flow, giving employees easy access to any relevant information.
Data, the main measurement unit of ERP software, is collected in a common database that serves as a central repository for the storage and organization of all information. This data is widely distributed, establishing strong connections between users, departments, and other software programs used by the company. The ERP system gathers data either through direct input by operators, through import from other databases or systems, or through transfer using EDI technology.
Benefits of ERP software for resource management
An ERP system provides companies with multiple benefits, making it indispensable for organizations that aim to successfully manage their business resources. Here are the main benefits of ERP software:
- Automation of repetitive manual tasks and reduction of human errors
- Efficiency improvement across the companys processes
- Maintaining a clear and up to date record of stocks, products, prices, etc.
- Quick access to a well organized database and intuitive reports
- Reduced response time in field operations using the ERP mobile application
- Improved business decisions and increased control over the entire business
ERP CRM solutions - Differences
The main difference between CRM and ERP is that CRM software focuses on customer data used by sales and customer service departments, while an ERP system is much more complex and enables the management of financial and operational information across the entire company.
In other words, a CRM solution generally focuses on increasing sales and profitability by centralizing data from sales, marketing, customer service, and contact management. In contrast, an ERP system focuses on planning and efficiently managing resources, aiming to reduce expenses and provide greater control over business processes and costs.
ERP applications are often referred to as back office systems, while CRM solutions are known as front office tools. Another important aspect is that some ERP systems can include a CRM component, while CRM systems cannot include ERP components.
A CRM solution constantly aims to increase profitability by boosting sales, while an ERP application focuses on planning and managing resources as efficiently as possible to achieve full control over business costs and processes. ERP systems are mainly used by human resources, finance and accounting, production, order management, and delivery departments.
Similarities between CRM and ERP systems
Although they have different purposes and functionalities, CRM software and ERP systems share several important similarities. First, both systems are designed to improve efficiency and productivity within companies. Another essential similarity is that they are business applications that store and analyze information in a relational database, allowing companies to optimize processes and improve overall performance.
Additionally, both CRM and ERP provide customizable and scalable solutions, enabling organizations to adapt these systems to their specific business needs. CRM and ERP programs can be implemented on premises or in the cloud (Software as a Service SaaS).
ERP vs CRM? How do you choose the right software solution for your business?
ERP application or CRM software
Choosing between an ERP system and CRM software depends on the specific needs of a business. Both solutions offer significant benefits, but they focus on different aspects of a companys operations. A CRM system is the first choice for companies with sales teams that want to focus on managing customer related activities and optimizing sales, marketing, and support processes.
In contrast, ERP systems, having a much broader range of functionalities, are used in companies that aim to efficiently manage all business processes, such as procurement, production, distribution, inventory management, accounting, and more.
ERP software with an included CRM component
Small, medium, or large enterprises, most growing businesses will eventually need both an ERP solution and CRM software, or a platform that integrates functionalities from both systems. A modern ERP that also includes a CRM component allows companies to cover marketing and sales needs as well, eliminating difficulties related to integration or the implementation of two separate solutions.
Thanks to the connection between CRM and ERP solutions, organizations can optimize operational processes, efficiently managing the activities of all departments within a single CRM system & ERP software.
Examples of ERP software systems with CRM functionalities
SeniorERP and SeniorXRP systems from Senior Software include integrated CRM functionalities, which are accessible both from the web and from the mobile application. The information collected and entered into the CRM platform can be easily accessed in real time, directly from the field, and the sales team has all the necessary resources to quickly move from potential customers to closed contracts.
Moreover, users benefit from powerful tools for marketing and sales, enabling them to streamline the sales process and customer relationship management.
Perfectly integrated within the ERP software system, the CRM component through its functionalities provides benefits such as: reduced costs, interconnected workflows, extended customization capabilities, increased performance and productivity, etc.