CRM vs ERP | Differences Between CRM & ERP Software in 2019

ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) are two of the most common software in the business world and both of them relate to improving the overall profitability of a business.

These softwares, although are different from each other, but overlap in some areas and can be integrated in others completely. However, this does not change the fact that both of them are completely different. For a business, it is crucial to look at them separately as stand-alone systems. Only this way, it is possible to see how CRM and ERP can play a role in improving efficiency and increasing sales.

What is CRM?

In simple words, CRM is a software that helps in managing the relationship with customers. It also includes the company’s potential clients. This software is used to organize, automate, and create synchronization among different areas of a business including sales, marketing, and customer service. In other words, it includes all the areas that relate to the customers to enhance their experience. This software also assists in identifying potential prospects/leads, nurturing them, and closing them through sales. Hence, driving business to the company. Through this software, old and existing customers can be retained and strong relationship can be established

What is ERP?

ERP, as discussed earlier, is an enterprise resource planning software that is used to manage the business. This software acts as a powerful tool to improve the efficiency of business processes. ERP allows rapid sharing of standardized information across all departments in an enterprise or organization. All the information is entered by the employees or those charged with authority into the ERP system to create a real time and enterprise wide snapshot. In case of any problem, alerts will be created automatically. As a result, the departments can easily plan ahead to cope with the issues coming ahead. ERP systems focus more on data rather than operations and this is the reason why this system acts as a tool to streamline business processes across the board.

The Difference

Since we have discussed each of these systems briefly, we can now list out the differences easily. The points given below are substantial to differentiate the two software i.e. ERP and CRM.

  1. CRM allows the organization to keep track of every transaction with the clients and customers. On the other hand, ERP helps the organization to manage its business processes effectively across the company.
  2. ERP groups the information provided or generated by various functional groups of the enterprise through multiple systems like CRM, Human resource management (HRM), and Supply Chain Management (SCM), etc.
  3. ERP was developed earlier than CRM. Hence, it has evolved a lot since then. On the other hand, CRM is still evolving and a lot of changes are expected in the future.
  4. CRM focuses on increasing sales by establishing strong relationships with customers. ERP emphasizes on reducing the overall costs of business by enhancing the business procedures.
  5. CRM is mainly concerned about establishing long lasting relationships with the customers while ERP deals with planning resources of the organization and put them to the best use.
  6. ERP is used in accomplishing back office activities while CRM is mainly used in conducting the back office activities.
  7. CRM helps in automating the customer service department while ERP helps in identifying ways through which all departments within the organization including customer service can be improved.
  8. ERP improves the accuracy of financial data while CRM streamlines the sales process.

Conclusion

Both of these softwares are of high importance for any business. CRM can help you establish long lasting relationships with your customers by knowing their preferences leading to enhanced trust. On the other hand, ERP combines various departments and functional departments of the organization together so that they can share the information without unnecessary delays and communicate with each other in real-time.

What businesses need to do is to make sure that the software is integrated into the business systems in the best possible way so as to avoid any glitches that may lead to lesser profitability. ITspresso excels at integrating ERP and CRM software to any organization and provide after sales assistance as well. Contact us now or send an email at [email protected] today to get a free quote.

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