Organizations looking to streamline core business processes mainly explore two main software solutions including enterprise resource planning (ERP) and customer relationship management (CRM). ERP assists companies in managing their businesses by connecting their financial and operational systems through a central database, while CRM helps manage how customers interact with their businesses.
Both of these solutions are run on multiple departments and businesses have witnessed improved customer satisfaction and smooth data exchange across the operations. According to the report published by Allied Market Research, the ERP software market is expected to reach $78.41 billion by 2026, while the global CRM market is expected to touch the USD 163.16 billion mark by 2030.
Read further to know more about ERP vs CRM.
What is Enterprise Resource Planning (ERP)?
ERP software systems help all-size companies in managing their entire business. ERP helps to efficiently manage all the processes like finance, HR, manufacturing, supply chain, etc. It also extends to inventory management, supply chain management, order management, and data related to businesses.
Key features of ERP:
- This software integrates all the services within your business.
- These are web-based applications and can easily be accessed through every interface.
- ERP software monitors the growth of the organization.
- These applications are used to manage the resources within an organization.
Why are ERP Solutions Beneficial?
ERP systems help improve sales and support teams as they provide a big-picture view. Salespeople can check outstanding payments or credit status while determining whether to upsell a customer. Through ERP, they can also alert the team about supply chain or order processing issues.
Other benefits of ERP systems include:
- Better business reporting
- Improved customer service
- Less inventory costs
- Increased cash flow
- Safer data security
- Process improvements
- Streamline supply chain management
All About Customer Relationship Management (CRM)?
Customer Relationship Management or CRM is a software helpful for businesses in connecting with customers and future potential customers. CRM software streamlines customer service and automates and synchronizes sales. The purpose of deploying CRM solutions within a business is to nourish and entertain prospect leads, which in turn prove beneficial in improving sales and overall performance.
The following are some key features of CRM:
- This software is used to integrate all the customer services in one place.
- This is helpful in managing and tracking the functions of the organization.
- It helps increase the performance of sales.
- Primarily focused on customers.
Why Use CRM Solutions?
CRM provides access to a wealth of customer data including their contact details, purchase history, and previous interactions, based on which future campaigns are designed. Reporting features which are a part of CRM analyze the sales goals and help design sales strategies accordingly.
Other benefits of CRM systems include:
- Provide in-depth analysis of clients’ profiles and buyer personas.
- Clearer segmentation
- Decreased customer churn
- Better sales preparation for enriched user satisfaction.
- Quick communication with clients and teammates
- Increased data protection
- More time with clients due to the automation of routine tasks.
ERP vs CRM: When Use CRM and ERP?
A few of the ERP systems include a CRM component, but CRM software systems don’t include ERP components.
ERPs let organizations manage their core operations- With ERP, managers can streamline and oversee daily activities involving accounting, project management, supply chain procedures, risk management, and compliance.
CRMs give importance to enhanced customer satisfaction. It streamlines sales and customer service processes to enhance the customer experience and increase profits.
ERP vs CRM: Key Differences
| Aspect | ERP | CRM |
| Definition | ERP systems are designed to manage and optimize an organization’s business processes. | CRM software lays emphasis on automating and improving customer interactions with the organization. |
| System Type | It is a centralized platform that streamlines all the processes within a business. | CRM is the single platform for making targeted customers your future customers. |
| Used For | ERP software is beneficial for managing financial data and operations. | CRM Software is used for managing sales and for improving customer services. |
| Feature | The majority of the ERP consists of CRM features. | CRM excludes ERP features |
| Web-Based Nature | ERP is a web-based application. | CRM is a web-based solution. |
| Focus | ERP is focused on overall growth and cost reduction. | CRM systems are focused on improved customer relations. |
| Support Activities | ERP supports the back-office activities such as accounting, procurement, HR | CRM supports the front office activities including marketing, sales, and services. |
| Examples | NetSuite ERP, Scoro, AcTouch, etc. | Salesforce CRM, Zoho CRM, HubSpot CRM, etc. |
Choose the Right Solution for Your Business
To adapt to the growing demand of modern businesses and get a competitive edge, businesses use the right tools. Now that we’ve covered the differences between ERP vs CRM, businesses can make a more informed decision about the many options.
Consider using an ERP system if:
- You want to improve back-end processes. ERP software streamlines the hiring process, accounting, supply chain management, and much more to make efficient operations.
- If your business is growing rapidly in all areas, a robust ERP solution is the right fit.
- If you use several tools or tech services, then managing multiple solutions becomes confusing and costly. Thus, you can use an ERP system to consolidate the information in one place.
Consider using a CRM tool if:
- If you have complex customer relationships and are looking for a robotic CRM system to manage a large customer base.
- When it’s about organizing customer data, a CRM is ideal to start, especially for businesses that don’t need additional back-end features.
- Though ERPs are fantastic on the production side, if you look to push existing products, CRMs are far better for marketing tactics and customer experiences.
Contact Kodehash for Customized CRM and ERP Solutions
Whether you want to improve customer satisfaction, streamline routine tasks, boost sales, or manage supply chain issues more effectively, both CRM and ERP systems help businesses by streamlining data on a centralized platform. Kodehash Technologies designs customized ERP and CRM solutions to assist organizations deliver outstanding customer service, simplifying common tasks, and staying updated. We provide a complete range of other features and applications that help magnify productivity and accelerate sales.
Book a consultation to learn ERP vs CRM today, and experience how integration can drastically improve your organization’s efficiency, profitability, and customer satisfaction.
ERP vs CRM: FAQs
In what ways CRM and ERP are different?
CRM automates customer interactions and insights, while ERP streamlines business processes and operations.
Who should use an ERP?
All businesses that want to streamline routine tasks can use the ERP system. ERP systems help businesses track resources and automate operations that otherwise are done manually.