In the era of technology and automation, ERP and CRM play an essential role to run a business/ company successfully. While ERP and CRM software have some overlapping features and characteristics, their core functions are different. Both ERP and CRM are used to increase the profits for the business/ organization. Both are valuable business software solutions but each system is used to manage and target different business goals. 

What is CRM?

Many companies still use spreadsheets to maintain customer data, what if the spreadsheets get lost or your data fall into wrong hands. Progress in sales might get affected. The solution to the problem is CRM. CRM stands for Customer Relationship Management. As the name suggests, CRM is the easiest system and process for managing a company’s relationship with current and potential customers. Customer relationship management systems concentrate on just one term: Customers.

A CRM system should confine every interaction the company has with the customer. CRM software is used to organize, automate and synchronize sales, marketing, and customer service. CRM help out to make the smart decision and possibilities for the company sales. CRM has developed to include all areas of the customer experience, keeping the customer happy and the company oversees all interactions between their customers and sales teams, in turn, keeping them, loyal and more valuable to your business.

It is the process of identifying leads, taking care of them and guiding them through the sales process to make the customer happy so that they make an order again and get profit.

Once they are a customer it is ensuring that you maintain that relationship and encourage repeat business – either more frequent orders or higher value. Any company most valuable asset-the customer data-saved in their database.

What is ERP?

In daily operations, organizations use data for functions such as planning, controlling, organizing, and decision-making. Data is indeed a prime resource in the operation of all organizations. Many companies implement ERP for managing operations and decision making, handling data, connecting to customers.

ERP stands for Enterprise Resource Planning. ERP software is a business process management software which allows an organization to use a system of integrated application to manage the business and automate back office function related to technology, service, and HR. The primary motive of ERP is to provide simplicity to complex business needs without being complicated.

ERP is a solution for improving the efficiency of the business process. ERP is one-step ahead in managing the important key-role function of any company like purchase, sales, inventory, manufacturing, human resources.

CRM vs ERP: How are they different

CRM manages the business interaction and communication with customers and is used by specific department i.e. front-office while ERP is used to manage the business flow and improve the efficiency of the business processes and is used by all the functions of the enterprise. Both help to increase profits for a company but with a different formulation.

CRM carry out to increase profits by producing greater sales with the help of customer interaction, the process is triggered by current customer/ potential customer while ERP focuses on reducing the amount of capital spent on processes and making business processes more simpler process is triggered by staff’s activity.

CRM helps out to build trust by understanding customer preferences and turning them into loyal customers of the respective business while ERP works to unite all functional unit of the company.

CRM provides the information of the current/potential customers while an ERP enables the employees to enter the valid information to the application system, creating a real-time access platform. An ERP helps out every business processes enabling effective planning and smooth-running streamline in advance.

In term of functionality, CRM concentrates on the accomplishment of the customer activities. CRM manages every customer information relevant to the company. This information used by all business departments from the bottom level to top level ie sales to manager to accountants, whenever there is a requirement.

An ERP is a complete package of all the key functionalities of the business like their accounting, warehouse, inventory, supply chain, human resource etc. With an integrated ERP software, a business can be made ready to hit the ground running and help their company exceed its own expectations for success.

Integrated CRM and ERP is worth

Yes, It will help a business to manage the business workflow with an ease without worrying about any problem. If any problems occur in any area will automatically create alerts in other affected areas. This allows departments to begin planning for issues before they become a problem in that department. In short, by allowing the business to focus on the data, instead of the operations, ERP provides a method for streamlining business processes across the board.

An integrated CRM with ERP works like food processor all component at one place to provide an outstanding result.

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