ERP vs CRM – Which One Do You Need?

ERP vs CRM – Which One Do You Need?

ERP and CRM are each vital instruments for enterprise course of automation and general streamlining of processes. Learn how they differ.

ERP and CRM are each vital instruments for streamlining enterprise processes. They’re each linked to a corresponding relational database and each of them assist companies make data-driven selections. The similarities finish just about there. Though the phrases ERP and CRM are sometimes used concurrently, generally even to imply the identical factor or to specific the identical thought, however as we are going to discover out, they’re two very completely different entities.

What’s ERP?

ERP stands for Enterprise Useful resource Planning. It it’s the successor of Materials Requirement Planning of the older occasions. The idea of ERP could be very easy on the core. It accumulates knowledge from completely different departments of a enterprise and makes them accessible via authentication in an effort to create a single supply of fact.

How does an ERP system work?

LEt us break that down somewhat. Allow us to say, you run a restaurant chain with 17 eating places scattered throughout 6 cities in 3 states. Now, every department of the restaurant has a separate ledger to report monetary knowledge. Every of them has a documentation of uncooked materials that’s procured and the gadgets which are offered. Each department has completely different necessities by way of employees, menus, recipes. Every of them have completely different overhead prices for electrical energy, and upkeep.

ERP helps you collect the knowledge from all 17 branches right into a single platform with an interactive interface. This lets you monitor what’s taking place at every of your eating places. You may simply entry details about revenue, losses, necessities, and many others. Extra vital, your ERP system can provide you with a warning each time there may be discrepancy between the identical knowledge coming from two completely different sources. 

You may detect patterns in knowledge and make viable predictions concerning the enterprise’ future with a robust ERP device. 

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What’s CRM?

CRM stands for Buyer Relationship Administration. It refers back to the course of in addition to the system employed to handle the interplay between the enterprise and its clients. A CRM device is used to build up the contacts, categorize them, rating them based mostly on the potential of conversion, automate newsletters, course of invoices, and whatnot.

ERP vs CRM - Which One Do You Need?

How does a CRM system work?

If we merely look into the best way companies purchase clients, we can respect the position a CRM system performs. Gross sales individuals purchase e mail lists from completely different sources, generally they purchase such lists. They get e mail IDs and cellphone numbers of people that is perhaps within the enterprise via the advertising and marketing web site and touchdown pages, they create an inventory of potential clients. 

They need to name every of them, assess the potential of changing them into clients, make followup calls, report the progress, let different group mates know the progress, design additional gross sales materials to upsell or improve an present relationship.

The method of changing lists into leads, leads into clients and clients into loyal clients, typically comes right down to the standard of interplay your enterprise has with a possible buyer. 

CRM permits you to streamline, standardize, and scale these processes. It allows you to automate a variety of processes like elevating alerts when a buyer responds to an e mail, updating buyer data in numerous pages of a CRM platform, amongst different issues.

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ERP vs CRM: The distinction between ERP and CRM

On this part we are going to evaluate ERP and CRM by way of who makes use of them, and the way a enterprise advantages from them.


ERP is usually utilized by the monetary groups that create the overall ledger of a enterprise. The C suite executives also can use ERP to entry details about their enterprise. Since, ERP touches each side of a enterprise from stock administration to financia closure, nearly everybody can use ERP in some capability.

CRM is nearly solely utilized by gross sales and advertising and marketing groups. 


ERP has a big set of attention-grabbing advantages.

  • It helps you take away discrepancies from accounts
  • It permits you to handle stock higher
  • You should utilize it for HR administration
  • You shut the financials sooner since ERP integrates the processes
  • ERP typically has a CRM element which permits buyer interplay administration

CRM brings its personal set of advantages

  • Gross sales course of automation
  • Buyer scoring and categorization
  • Alerts and reminders to contact and comply with up clients
  • Advertising course of automation

Which one do you want?

ERP vs CRM, it’s tough to decide on one or the opposite. Some companies have processes scattered throughout departments and so they want a type of administration mechanism to  carry all that collectively and get managed entry to the fitting data. They may want a robust ERP device. With a CRM they’ll have the ability to handle the shopper interactions higher. The perfect step ahead is to combine CRM and ERP – you’ll be able to choose and select options from each the instruments and create a customized answer for your self.

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