CRM software, ERP system or both?

crm erp

The ERP and CRM systems are very much similar from various ways because they are implemented with the purpose of raising the general profit of a business, but the basic functionality is completely different. When they are analyzed separately, it’s easier to realize the way that those two systems contribute to improve efficiency and to raise the sales in a company.

What is ERP, what is CRM

A CRM software can be used by the sales teams, marketing and even by the new business developers to:

  • Keep the evidence of the clients and their behavior in the buying/acquiring process
  • Identify new business opportunities and new leads
  • Streamline sales processes and reduce the reiterative actions.
  • Automatize marketing processes (e-mails or online campaigns)
  • Manage accounts and social media campaigns
  • Offer a better assistance to the actual clients

An ERP system is an informatics system meant to help streamline the business processes from a company summarizing all the information in one platform.

Which are the differences between the two systems

The main difference between these two software solutions is related to their purpose: the CRM software is used especially for the sales & marketing teams, when the ERP system has functionalities for the entire organization.

Even though their benefits are quite similar, the ERP and CRM systems use different ways to raise the profit. The main purpose of an ERP system is to reduce the costs through streamlining the business processes. Implementing an ERP system will help you reduce the value of the capital spent on these processes.

CRM has as purpose to raise the profit producing a well amount of sales. Having a summarized base about clients it’s easier for the entire sales team to improve the relations with the clients and to find new opportunities to grow. A better communication with the clients will attract the growth of loyalty towards the brand and, especially, the company’s profit.

How do you find out which one of them you need?

Firstly, a business needs to have processes before it can be taken in consideration to streamline them. Secondly, it needs to generate profit through streamlining the costs. CRM is often chosen as a first investment because it helps the business to develop. Helping to maximize the number of sales, a CRM software can allow a business to grow and to develop until the ERP system becomes a necessity.

To raise the profit there are two possibilities: sales growing and streamlining the outgoings. The CRM system will bring more capital through good sales numbers, while the ERP system reduces the total operational outgoings. Together, these software systems can help a business grow its efficiency.