ERP vs CRM: What They Do and Which One Enterprises Choose

When an enterprise needs to automate work processes, its business leaders think about implementing ERP or CRM. Which of the systems is best for you? What’s the difference between them? Let's figure out which system is better to implement into the work of your organization.

ERP = enterprise resource planning

ERP is enterprise resource planning software. The program collects, stores, and uses information to improve a company’s productivity.

For example, a company has a customer base (CRM), warehouse inventory control where orders are processed, accounting, an HR department, etc. Reporting can be done in tables, but there is one problem - all these sources are disconnected. Such a situation slows down the company’s efficiency and leads to a waste of time and money.

Custom enterprise software centralizes all of the organization's information and enables it to manage this flow. All business processes become connected in a single chain. Employees work more efficiently because they can access information at any time. If a manager needs statistics and reports on the organization, they will quickly receive them, as all the data is available in a single information model.

What does ERP do?

Сustom ERP software gives companies the following benefits:

Work with other programs and applications of the enterprise, including CRM. You can set up an exchange with the company's website and emailing, as well as display target indicators on a smartphone or tablet.

Management of corporations with a large number of international divisions and remote employees. ERP is a flexible system with numerous modules that can be added or removed without disrupting the operation of the system itself.

Сloud-based ERP is secure - each user is assigned with an appropriate access level, and the history of changes is saved.

The system gives the opportunity to manage the company’s financial data. With reports, the manager can understand the scale and dynamics of costs.

ERP sets production standards. Large enterprises have remote branches that keep records in their own way and use different computer systems. In order to avoid getting lost in this data ERP is used, where all the necessary information is available.

ERP shapes HR standards. The system unites tasks related to working with employees: selection, retraining, advancement prospects, and so on. With this program, you can monitor the productivity of each employee and track their contribution to the company's success.

When a company starts to grow and new departments appear, it becomes harder to coordinate their work - there can be difficulties in exchanging information between departments, which slows down processes. Сustom ERP software is a solution for middle-sized and large companies. Next, let’s talk about CRM and whether CRM and ERP are interchangeable.

CRM = customer relationship management

Сustomer relationship management (CRM) software relates to the control and allocation of material and human resources within a company. This system automates the communication of the enterprise with its clients, improves marketing and sales, stores information about clients and correspondence with them, and helps to develop the business, increasing the profitability of the company.

CRM has revolutionized the format of working with clients. To make your sales successful, you need to know all the information about your clients: name, age, address, purchasing habits, etc. Automated systems, contact centers, and databases have made this possible.

Clients love to be treated with attention to their needs, so they often turn to companies where they are appreciated. An impressive 91% of consumers confirm that good service in an organization determines their willingness to buy again. Satisfied clients share their positive experiences with their friends, which increases the likelihood of the latter also turning to the same supplier.

What does CRM do?

Stores information about clients and the history of communication with them.

The CRM system collects data about each client: name, phone number, email address, and place of residence. Phone call records, sales, invoices, and other information about interactions with the client are also added there.

All data is structured, so finding any information in a common database is easy. Data access levels are regulated. For example, each manager has the right to view information only about their own clients. If an employee leaves, they won’t be able to take away the client base - access to the company's data is closed.

Helps to control the work of managers.

With CRM, you will avoid situations when everyone is working, the reporting indicators are satisfactory, but the company still bears losses at the end of the quarter. The system records every move made by employees: meeting statistics, cold calls, correspondence, processed requests, etc. so that managers can see the real picture.

Shortens the trade cycle.

CRM software automates the process of closing deals. Managers contact a client, determine their needs, talk about the product, arrange follow-up calls, etc. All these tasks can be solved faster thanks to CRM. The program has a working environment where you can record information while talking to a client. The commercial offer template can be sent in one click; the task of calling back is also set in the system.

Provides up-to-date analytics.

CRM visualizes statistics of customers, requests, and sales. A manager clearly sees how many deals were closed and for what amount, how specialists worked, etc. This information enables teams to more effectively build a sales strategy for the next period.

Automates business processes.

Operations such as sending a presentation template, notifications about sending a commercial offer, thank-you messages for making a payment, and others are automated in the system. As a result, specialists have more time to work on sales.

As a business and its client base grow, it becomes difficult to manage it within standard office programs. That’s why companies implement custom CRM software. Before doing this, it is recommended to calculate what benefits the system will bring in a year after its launch and draw up a plan for its implementation and integration with existing applications. Train your employees and prepare them for a new working format.

ERP vs CRM: what to choose?

ERP software mainly focuses on the internal business processes of a company, while CRM is aimed at optimizing client service. Both systems improve different aspects of the enterprise, so they can be used together. Many ERP solutions perfectly integrate with CRM.

The choice largely depends on the organization’s goals. If you strive to improve marketing and sales, and all other processes are fine-tuned, then opt for CRM. But if your main headache is the lack of communication between departments, it is better to give preference to ERP.

To make the right choice, order a consultation with a design software architecture development company. Andersen’s experts will select the best solution based on the needs of your business - after all, we specialize in custom CRM solutions and ERP systems. To contact our team, leave a request on our website.