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The Difference Between ERP And CRM Software

The era of technology has called for automation in all business aspects, from sales automation to marketing automation, enterprise resource planning (ERP), and customer relationship management (CRM).


Companies adopt software tools in their businesses to escalate profits or make processes quicker and faster to serve their customers better or manage finances efficiently or for other functionalities since many companies tend to integrate many software tools.



Often companies use very many different software tools to manage their businesses, but the most commonly used software solutions are CRM and ERP.


Integrating the two systems results in increased productivity in terms of sales; however, that doesn’t mean that they are the same and perform similar roles. They are actually different.


1. Exploring CRM

CRM is an acronym that stands for Customer Relationship Management (CRM) and is software for managing all your company’s relationships and interactions with existing and potential customers to improve business relationships to grow your business. The target of enticing customers through an enhanced ad targeting direct towards sales are the core heads of CRM. Good customer relationship management encourages brands to keep linked to their existing and latent customers, builds faithfulness, crafts customer relationships, keeps joint customer service, increases the volume of sales, marketing, and productivity for the business through enhanced communication and good customer experience. CRM is a tool used for contact management, organizing, sales administration, marketing automation, synchronizing sales and efficiency, and managing customer interaction.


Initially, when CRM was first developed, it was intended to promote sales and the related departments as sales force automation. However, other different systems were being used to manage client interactions with the business, and when it got popular, companies started integrating it with other systems. Thus, it was initiated as a new customer interaction management system. Additionally, other businesses combined the different systems of communication and sales into one system, which later came to be known as the Customer Relationship Management system.



Customer Relationship Management involves pointing out leads, fostering them, and taking them through the sales process until the closure of a business deal; beyond this stage, a business owner, developer, or manager is only left with maintaining the relationship between the customer who has made a purchase and the business, this is one of the core things that CRM handles since it also deals with the storage of customer data, maintaining experiences, making follow-ups so that the previous clients can do purchase repeat.


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Taking a closer look at the features offered by the CRM system

  • Discovering new prospects

  • Automation

  • Administering marketing campaigns

  • Restructuring the sales process and sales campaigns

  • Automation of unnecessary tasks

  • Good customer experience and support

CRM got lots of goodies and benefits;

  • It gives a central system for capturing all your customer data

  • Keeps track of all client data

  • Aids businesses make much more informed decisions

  • Helps to track the performance of sales

  • Provides more articulate ways of serving customers.

CRM is associated with so much more benefits.


2. Understanding ERP

ERP is an acronym that stands for Enterprise Resource Planning is a shared database for most of the organization's departments but mainly finance, accounts payable, accounts receivable, financial reporting, payroll, and general ledger. However, it doesn’t just end but rather goes ahead to function in order management, supply chain, inventory, and data management as well as services attached to the organization; therefore, it extends its hand to production, distribution, procurement, human resource management, and fulfillment plus many others.

ERP system administers and takes control of all the business processes, for example; quick sharing of standardized information across the different business functions in real-time; once information is entered into the ERP system, it becomes easy to scan any existing problems in the system before functions become affected hence giving them prior time for planning to address issues before they escaIn addition, late. ERP streamlines the business process by making alerts to the response functions in case of any problems.



Check out the features of ERP system you can work with;

  • Alerts regarding any issues

  • Running hiring initiatives

  • Keeping track of manufacturing

  • Entering business information in real-time managing

  • Tracking supply chains

  • Process orders

  • Update accounts

  • Running benefits, patrol, and employee information

  • Create enterprise and wide strategies.

Taking a quick look at the benefits of ERP system;

  • ERP has a single central data system for the storage of financial and operational data

  • Conducting analysis and reporting

  • Informs a business to make data backed up decisions to profitability and business growth opportunities

  • It helps a company to identify a financial close

  • There is advanced financial control in a business that brings efficiency and effectiveness regarding financials.

Similarities of ERP and CRM systems

  • They both use business applications to store and analyze data

  • They are both delivered via traditional on-premises model or software as a service

  • They both serve as data repositories

  • They can both touch multiple departments

  • It is said that in some instances, the software tools can be built on the same platform.

  • They both make it up to efficiency and effectiveness in business processes

  • And finally, both systems are important for the growth of a company/business

The differences between ERP and CRM



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