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blog | October 01, 2019

How Are ERP and CRM Different?

Businesses that are unfamiliar with both Enterprise Resource Planning and Customer Relationship Management software may not realize that differences between the two aside from their names. While the two...

By Courtney Perry

Businesses that are unfamiliar with both Enterprise Resource Planning and Customer Relationship Management software may not realize that differences between the two aside from their names. While the two systems may have some overlap in what they do, they have different core functionalities. These valuable systems help to improve revenue, productivity and daily business operations, but their differences are quite drastic.

Let’s cover the differences between both ERP and CRM software.

What is ERP ?

Enterprise Resource Planning is a business management software designed to improve company performance, productivity and the profitability of a business through streamlining business operations. ERP software can be integrated and implemented across multiple departments.

 

Main features include:

ERP Benefits:

 

What is CRM?

Customer Relationship Management software is designed to capture and manage a company’s interactions and relationships with current and potential customers. CRM enhances relationships through tracking leads and streamlining processes. The overall goal is to increase sales through these interactions.

 

Main features include:

CRM Benefits:

 

Key Differences Between ERP and CRM

  1. CRM gives users the ability to trace all customer communications and improve upon relationships with those customers. ERP helps a company manage their business processes across a company. The main difference here is what faction of a company each software serves.
  2. CRM was designed to create campaigns and develop plans to better relationships whereas ERP is meant to execute business operations.
  3. Marketing and sales departments utilizes CRM more than other departments since those departments interact with customers on a daily basis. ERP focuses more on manufacturers.
  4. CRM focuses on increase sales while ERP gives an emphasis on reducing overall costs.

 

How to Decide Between ERP and CRM?

Now that we know the differences between ERP and CRM, it is time to decide which software you need. When making this decision, it is important to think about the areas in which your business is lacking and could use help.

If your business deals with large amounts of inventory, struggles with managing financials and needing to keep up with shop floor changes, ERP will be of great service to your business. Especially helpful to manufacturers, ERP software assists with making sure that business operations run smoothly and on schedule.

On the flip side, if you need assistance with customer service, marketing, lead management and sales automation, CRM is essential for your business. It breaks down the silos between sales and marketing departments, so they can share information meant to bring in customers that can convert into sales. CRM software works for a wide range of industries, especially those dealing with constant customer communication.

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