CRM vs ERP

ERP and CRM are the 2 most powerful business process software in the market today. At times, few of the features of these solutions overlap which confuses the Business owners which system would be ideal for their organisation and help them grow. 

First let us take a look at CRM

CRM means Customer Relationship Management.

A CRM is a system using which you can monitor your sales, marketing and support teams to improve their efficiency.

the main purpose of a CRM is to:

• Increase sales
•  Improve customer relationships.
•  Connect with prospects.
•  Ensure quality service.

The main functionality of a CRM is to gaze outwards.

A CRM system can help you:

• Improve response time.
•  Pursue new leads and opportunities.
• Build effective marketing campaigns.
•  Streamline sales process.
•  Analyse purchase patterns.
• Ensure quality service.
•  Automate repetitive tasks.

 ERP means Enterprise Resource Planning

An ERP system  is designed to improve the efficiency of your business process, reduce overheads and cut costs. 

The functionality of an ERP is to gaze inwards.

An ERP system can help you:

• Track business processes.
• Send alerts across departments.
• Plan an enterprise level strategy.
• Process orders, update accounts and trigger alerts.
• Manage manufacturing and supply chains. 
• Track recruiting and hiring.
• Manage payroll benefits and personal information.

Choosing an ERP or a CRM for your organisation can be gauged on 3 criteria:

1. Need
2.  Investment
3.  scale

• The main function of a CRM system is to boost sales whereas the main function of an ERP system is to reduce costs. 
• A CRM system has a smaller investment compared to an ERP system.
• A CRM system  provides  greater benefits to  small  and medium-sized businesses as the nature of the business involves lead generation and sales activities. On the other hand an ERP system provides greater benefits to large organisations or organisations with complex processes where activities like reducing overheads and cost-cutting can increase their profitability.

Some ERP systems in the market come with an inbuilt CRM.  The output of such systems are mainly for maintaining records and reporting purposes as an ERP system is designed to do just that.

Any organization can start by using a CRM system and can integrate with a compatible ERP system as and when the need arises. 

Currently there are several CRM & ERP systems in the market  for different industry verticals, having different features.

Do reach out to us if you need us to help you assess the right Solution for your business to help you grow.