Can you compare two sides of the same coin? No, similarly, you cannot compare ERP and CRM as they serve different purposes. So, Searching for ERP Vs CRM is not correct. You can search for their differences based on the tasks.
Enterprise resource planning (ERP) streamlines the internal processes of the company. CRM stands for customer relationship management; it manages the customer and company relationship.
Besides these two terms, supply chain management (SCM) is also a popular term. It focuses on the tracking and collection of data.
What is CRM?
Customer relationship management (CRM) is a tool with which you can easily manage the relationship and interaction between your company’s customers and potential customers.
The aim is straightforward: to improve commercial relationships. A customer relationship management system (CRM) aids businesses in staying in touch with customers, streamlining procedures, and increasing profits.
A CRM solution allows you to handle the company’s relationships with various people like suppliers, customers, service users, or colleagues. This tool helps you with the relationship’s life cycle, like finding new customers, winning contracts, and providing additional services.
What Are the Types of CRM?
There are many types of CRM based on its functionalities and other features; we have defined the most common ones.
- Analytical: a type of CRM that offers data visualization, allowing you to have a deeper understanding of your customers, their interactions with your company, and the possibilities.
- Collaborative: The focus is on how you communicate with your vendors and distributors using shared consumer data.
- Operational: This type enables you to better run your business depending on the information you collect about your customers.
- Campaign Management: a CRM system that combines analytical and operational CRMs and is used to perform sales or marketing campaigns based on the contact information collected in the system.
- Strategic: This type prioritizes customers; helps you make better business decisions based on consumer data and market trends.
What are the CRM Tools?
Mailchimp is a marketing automation platform with CRM features. Mailchimp is suitable for freelancers, startups, and small businesses since it has the right mix of capabilities for both sales and marketing departments.
HubSpot CRM allows you to track customer interactions across email, social media, and phone calls, as well as manage your sales funnel and generate automated email sequences for your leads.
What is CRM Integration?
The smooth connection between your CRM software and third-party applications is known as CRM integration. These linkages result in automated actions that enhance the usefulness of your product and eliminate the need to switch between platforms.
What is ERP, and How Does it Work?
Enterprise resource planning is the management and integration of the essential part of the business. In short, ERP software connects all the tasks for the progress of the company.
It provides a flow between the different areas of the business and reports accurate data. ERP has a relation with business development, planning, and management.
Enterprise resource planning (ERP) uses a centralized database to streamline many corporate operations and decrease human labor.
An ERP system often includes dashboards that allow users to view real-time data collected from across the organization to assess productivity and profitability.
What is ERP Integration?
Integrating pieces of software with an ERP is difficult since each piece of software has its own set of precisely defined rules for managing and using data. ERP integrations’ responsibility is to sync this data properly while ensuring that it is accurate and relevant. To do this at scale, you’ll need an organized, logical framework that your team can sustain.
ERP integration is the process through which a company’s ERP software links with another program. The goal is to communicate data across systems to boost productivity and get new insights while also creating a single source of truth.
ERP VS CRM: What is the Difference Between ERP and CRM?
Both ERP and CRM systems help organizations to grow. The essential distinction between the two is that ERP is primarily for financial data and the finance department, while CRM is for customer data and the sales and customer service departments.
ERP and CRM systems use different ways of increasing profitability. ERP focuses on lowering expenses and lowering overheads.
It minimizes the amount of capital spent on business processes by making them more efficient. CRM aims to boost business margins by increasing sales volume.
CRM and ERP in Cloud Computing
The function of ERP, CRM, and their integration remains the same on the cloud. The only difference is the data is available on the third-party app.
It has many benefits, three of them are:
- Everyone encourages the virtual network and utilizes an app to access the same data, whether on the road or at their desk. It can redefine specifications and pricing, allowing for quick reductions or upgrades.
- Even if devices are lost or stolen, data on the cloud remains safe. Gadgets that go missing can be blocked access right away. It also included data backup as part of the service.
- These solutions adapt to your changing needs with ease. If you must do these tasks quickly, this makes everything go faster.
ERP Vs CRM Vs SCM
These three terms are not opposed to each other; they have their purpose. Still, some of the key points to explain their working differences are:
- ERP is for data management and planning purposes, CRM is for customer data, and SCM is for tracking data.
- ERP aims to focus on the internal process of the organization. CRM to have a stronger relationship with customers, and SCM focuses on tracking and managing your tasks.
We hope that all your confusion regarding the title “ ERP Vs CRM” has been cleared. These two are different concepts that a company should integrate to make the workflow smooth.
Except for these two, SCM is also on the list that helps in tracking the processes. Do let us know if we have missed anything.