What is the difference between an ERP and CRM

What is the difference between an ERP and CRM

Would you use your pan to make your chicken soup?

Let's say you are trying to cook chicken soup for fifteen people; however, you notice that your large pot is rusty from being kept for so long, and the only tool left in your kitchen is a pan where you cook your omelets in the morning. Would you use your pan? Because anyway, it is a tool where to cook dishes?

That's how an ERP and CRM are related. They're like a pan and large pot. You may think they're the same, but they're not. It is also the same relationship ERP and CRM have. Technically, some often think they're the same thing, but ERP and CRM are both software, but they do not have the same use in general.

It also starts when business owners or companies plan to automate their business, and I will repeat this, business automation isn't about hiring robots. Business process automation is using technology to automate business processes or different workflows. Automating processes is essential for companies that want to keep their operations running smoothly and efficiently.

Companies or business owners who have decided to implement automation to improve their workflows and increase operational success can consider integrating an Enterprise Resource Planning software, ERP, or Customer Relationship Management software, CRM. But before choosing between the two, they must know their difference and usage.

What is an ERP?

ERP stands for "Enterprise Resource Planning." Most companies and businesses use an ERP solution or software to automate their daily function, from production, logistics, sales management, accounting, and many more. ERP allows you to monitor your company and make work efficient every day. An ERP system can streamline business processes and make your company more profitable by providing various tools that allow people to make better decisions. An ERP system automatically gathers information from all the accounts and procedures in your company, so there's no need to enter data manually. A company should no longer wait days for a sales quota or return of investment report after manual count or calculation after installing an ERP solution; everything has been made easier for everyone.

What is a CRM?

CRM—also known as customer relationship management—is an enterprise software application to streamline sales, marketing, and customer support activities. A customer relationship management system gathers all your customer interactions in one place, making it easier for you to track and manage your relationships across the channels that matter most. With CRMs, businesses can improve customer experience and satisfaction while reducing costs by optimizing their responses to customer needs and concerns.

What is the difference between an ERP and CRM?

In an organization, ERP and CRM systems both exist. However, the difference is how they deal with data—ERP focuses on financial data, while CRM focuses on customer data. The former is commonly referred to as the back office, and the latter is the front office. Some ERP systems include a CRM component; others do not. For example, Salesforce.com does not handle transactional data—it accesses order history or invoices through an integration with an ERP system.

Both ERP and CRM systems improve efficiencies in business processes. But an ERP system reduces costs by making business processes more efficient. In contrast, a CRM system works best to facilitate higher sales volume and improves customer interactions.

What are ERP features?

Most of the significant ERP features include:

Business Intelligence - ERP systems produce real-time data, alerting teams to bottlenecks as they happen. Data analysis can help diverse departments be aware of what each other is doing. If a problem occurs in one department, another department can be prepared.

Order Tracking-?ERPs help CRMs and ERPs work together. For example, ERPs will help CRMs ensure sales orders go through and that inventory is available before the order is shipped. As well, ERPs track customer deliveries and delivery schedules. ERPs and CRMs can help companies and customers track delivery schedules.

Human Resource-?Human resource departments use ERP software to keep track of their employee's details. It can help you manage things like hiring and onboarding new staff. ERP software has tools for insurance and liabilities, which is suitable for companies with many employees spread out over various locations.

Supply Management- ERP systems can benefit many companies. They can help with procurement, inventory management, and warehouse organization. ERPs also keep track of suppliers and other third-party partners.

What are CRM features?

Most of the major CRM features include:

Marketing Campaigns- CRM software helps you streamline marketing strategies and find the best time, place, and description for your posts. It can help you manage campaigns across multiple platforms like social media, email and text messaging. Many CRMs do email marketing campaigns segmented based on customer data. They find potential customers by creating leads from users who engage with content.

Sales Pipeline-?CRMs help sales teams manage the sales process. Lead management software automatically routes marketing leads to sales reps, and gives them tips on how best to keep engaging with potential customers. This helps representatives plan for future campaigns and pricing strategies, boosting profitability and revenue forecasts.

Helpdesk Support-?Customer relationship management tools make it easier for you to communicate with your customers. These include multichannel communication dashboards, an email, message, and live chat system; ticketing tools; customer data tracking; and self-service helpdesks.

CRM software is used primarily by sales reps to get leads, boost sales, and develop better customer relationships. It's an excellent standalone tool for startups and small businesses. These days, CRMs are used equally by marketing agents and customer support reps too. ERPs take care of everything behind the scenes: stuff that's invisible to customers—like keeping track of their inventory and making sure shipments arrive on time. ERPs oversee fulfillment, shipping, and deliveries; they keep up with maintenance and other overhead expenses. HR departments also use them to manage employee records.

The bottom line, there are a lot of ERP and CRM software in the market. You just have to find the one that fits your business.

https://crm.org/crmland/erp-vs-crm

https://www.netsuite.com/portal/resource/articles/erp/erp-vs-crm.shtml

https://www.geeksforgeeks.org/differences-between-erp-and-crm/

https://www.indeed.com/career-advice/career-development/erp-vs-crm

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