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I heard a lot from clients with which they should go between ERP and CRM. They often get confused before going for any one of these products. While looking into a wide picture ERP and CRM have few overlapping features and characteristics but their core functions are massively different. But both used to increase the overall profitability of a business. 

It’s very important to understand the key differences and to know what will be best for your company before going any one of the products. Today I am going to explain the major differences between the ERP and CRM.  But first let’s understand what functionality does ERP and CRM provides.

Understanding ERP

ERP stands for Enterprise Resource Planning. ERP software is all related to the back-office process. The aim of ERP is to make business related process more effective and bring down the cost spent to managing these processes. It is intended to manage key components of your business from inventory to Supply chain, human resources, accounting, manufacturing, order management, distribution and more. 

ERP is highly data driven also it provides integration to other system too.  ERP allows you to focus on business management and planning rather than the operations.

Understanding CRM

CRM stands for customer relationship management. CRM primarily focuses on their current and potential customers. CRM primary functions are to automate, organize and synchronize sales, marketing and customer services. It tracks customer information across departments. It also holds information on potential new customers as well as in tracking leads and creating marketing campaigns. CRM also allows for the synchronization of sales, marketing and customer service data. Once a customer is recorded in CRM, it ensures that you maintain relationship and also encourage for repetitive business.

Between ERP and CRM with which should I go for my Business?

There is always some confusion in buyers mind between both of them. Buyers know what CRM functions are but they are not sure about if they can get those same functions out of an ERP system or not. As most ERP have CRM components or has the ability to integrate with a CRM. ERP system also has CRM components but not as fully featured as we have in in standalone CRM platforms.

So, if you are looking to improve your sales and marketing and do want to emphasis much on accounting and human resources part and happy with the existing system you are using for these two. Then you need to go for the CRM.

If its small or midsize business SMB you certainly need an CRM but until you are ready to expand and grow in size you will not require ERP.

And on the other hand, after a long period when your company size grows along with your business then you definitely need to go for an ERP.

Conclusion

Both CRM and ERP have their value in their terms. These both are the valuable assets for your companies which help you to success in today’s competitive market by helping you to make better decisions, revenue and managerial level reports.