CRM and ERP are two different business acronyms which are extremely valuable for the businesses and are designed to achieve distinct business goals. Although there are similarities between the two terms but they must not be confused as a similar thing because the core functionalities are different. Both of them play essential roles in enhancing the efficiency and improving the sales. Here is a brief of both the terms and how they are different from each other.
Customer Relationship Management (CRM)
CRM is a system which is about recording and storing the reactions of the customers to reap future benefits for the company. Referring to CRM means that we are talking about the software which helps in storing the interactions with different customers. This, in turn, helps in the organization, automation, and synchronization of the sales and customer services. Also, it helps in coming up with better and more resourceful marketing strategies.
With the help of this software, you identify the potential leads, nurture them, and make them more fruitful for the development of the business. Once you know what is making your customer base strong, you will maintain it either for repeated business or for higher value.
Benefits of CRM
- Adding a layer of accountability to the company-consumer relationship.
- Providing a better experience to the customers and aiming to form a loyal customer base.
- A dependable and resourceful mean of storing tons of data.
- Automation of essential everyday tasks.
- Improving the ability to analyze data and use it for future growth purposes.
Enterprise Resource Planning (ERP)
ERP is quite different from CRM in a way that it manages the business instead of managing the customers. It is more integrated within the system of the company and has nothing to do with the people who are not a direct part of it. This software helps in sharing the information amongst the employees with each of them entering standardized and important information into the network. This helps in creating alerts when a problem arises in any of the departments and giving them to plan out a best possible solution for it together. This improves the functioning and efficiency of the company within the infrastructure making it easy to resolve problems right on time. With the help of ERP, the company has a clear and accurate picture of its standing.
Benefits of ERP
- Providing a central database for the business which can easily be accessed by any of the employees.
- A transparent and truthful view for the entire hierarchy.
- Strengthening the security of the database.
- Giving the authority to the employees to be greater revenue generators.
- The mobile accessibility helps in accessing the business even when one is on the go.
The Major Difference
Both of them have the common aim to increase the profitability but in different ways. ERP tends to reduce the maintenance costs whereas CRM aims to increase revenue by enhancing sales. Incorporating both of them means that you are ready to give a boost to your business towards growth and development.