What’s the difference between CRM and ERP?
Sun, 09 May 2021
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Customer Relations Management (CRM) and Enterprise Resource Planning (ERP) are similar in many ways but have different core functionalities. For business solutions that increase revenue, automation, and productivity both are important. In some areas, these systems overlap and can be fully integrated into others.
What is CRM?
CRM at its simplest is processes and systems for managing the interactions between an organization and potential and current clients. CRM applications are used to automate, organize sales, customer service, and marketing. CRM applications have been developed to connect all areas of customer experience, keep the customer happy and, in turn, keep them loyal and more valuable to your business. It is the process of identifying potential leads/prospects, guiding them to close the business through the sales process. Once a customer, it ensures that you maintain that relationship and either encourage higher value or frequent orders to repeat business.
What is ERP?
Where the customer is managed by CRM, ERP is used for business management. With the ERP system, the business processes of your company can improve. All employees enter the information into the ERP system, generating information in real-time. If problems are found in any department it will create automatic alerts in other departments. This enables departments to start planning for issues before they become an issue within that department.
CRM Software manages front-office activities:
Organize marketing efforts
Manage the sales pipeline
Calculate time spent on converting leads to closing deals
Streamline your sales processes
Automates customer service
Track a customer’s interactions with your business
Share marketing and sales collateral
Create data reports
Learn which products sell best and when
Prioritize leads
Manage inventory based on historical sales data
Collaborate to sell as a team
Manage your business contacts
Manage your business leads
Share customer profiles with co-workers
See where leads come from
ERP Software manages back-office activities:
Distribution process management
Supply chain management
Services knowledge base
Improve the accuracy of financial data
Facilitate better project planning
Automate employee life-cycle
Standardize critical business procedures
Reduce redundant tasks
Assess business needs
Accounting and financial applications
Lower purchasing costs
Manage human resources
Payroll
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