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What’s the Difference Between CRM and ERP?

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Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are two software solutions that efficiently improve the operation of a business. So, what’s the difference between CRM and ERP?

Knowing the differences is important to determine which solution will suit your business. For this reason, you should know the key characteristics of this two software.

Let’s learn about CRM first.

What is CRM?

As the name suggests, CRM is mainly used to interact with customers. The software stores every customer’s data like the name, address, or other contact details, as well as their purchasing record.

No matter how big or small your business is or is located in single or multiple places, all data will be recorded under a centralized system.

This information is essential for understanding the sales funnel so that you can come up with better planning for the future.

Benefits of CRM

There are several tasks you can accomplish with CRM software. Such as-

  • Understand the purchasing pattern
  • Identify new leads
  • More sales conversion
  • Manage marketing campaigns effortlessly
  • Build up good relationships with customers
  • Plan a solid sales process

What is ERP?

Basically, ERP controls all the resources that are needed to operate a business. It includes inventory management, order management, supply chain management, HR management, CRM management, and many more.

In short, ERP is such a solution that comes with a lot of opportunities. You can customize the modules of the system according to your business needs.

And like CRM, ERP also runs under a central database. It collects data and updates you about the current situation with real-time reports. You can track every aspect of your business from anywhere you want.

Benefits of ERP

With ERP software, you can do the following.

  • Get real-time report
  • Manage all the operations of the business with a single platform
  • Be notified about alarming issues
  • Easily come up with effective strategies

CRM Vs. ERP – Which One is Better?

Well, you see, an ERP solution has a built-in CRM module. So, if you go for an ERP system, you can have both. That’s why you might think that an ERP system is always better. But it’s not true at all.

Developing an ERP system needs more budget. It is also quite hard to maintain. Therefore, if your business is small or more customer-focused, you may not need that many modules. In this case, simple CRM software can do all the job perfectly.

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