CRM and ERP: What’s The Difference?
In this article, we want to shed some light on the differences and similarities between ERP and CRM systems. While they overlap in some areas and can be completely integrated into others, their core functionalities are entirely different.
When choosing a one suitable for your business, it's best to first look at them as separate, stand-alone systems. We have analyzed ERP and CRM separately to show you what role each of them plays in improving efficiency and increasing sales.
As a rule, this system is used by sales, marketing, and business development teams. It compiles, stores, and processes all the data from various communication channels including company's website, telephony, email, live chat, and sometimes even social media.
By integrating the system, the company ends up with one standardized customer base containing all information about prospects, existing customers, and all processes orders. It provides business with valuable insights about their target audience and how to best deliver their goods or services. The analysis of the data allows improving business relationships with customers, building efficient strategies for customer retention and growth of sales.
Apart from providing a full and continuously updated view of core business processes, ERP system manages the flow of information between all business departments and delivers it to outside partners.
In a few words, ERP software integrates all departments and functions of an enterprise into a single system. However, the same result can be reached by combining a set of various applications from different vendors.
In general, the vast majority of ERP systems usually has some CRM components. However, they will not be as fully featured as those provided by stand-alone CRM systems. While ERP software usually has means for marketing and sales force automation, they often lack functionality for support and social media management.
We have prepared a chart for you to see how exactly business processes are covered by ERP and CRM, where they are related, and where they differ:
However, if you want to connect every software your company uses and control all business processes from one place, then it'd be better to invest into a full-scale ERP software development.
Thus, unlike the ERP system that manages all different information about the company, the CRM will manage only customer oriented departments.
Do not worry if you still have trouble deciding what system is right for your business! We can answer all the questions you might have - just contact us.