An ERP and CRM system may both centralise data, eliminate siloes and boost the efficiency and profitability of a business. But they’re not the same thing.
The biggest difference is an ERP system can manage back-office tasks to help you reduce overheads and improve process and cost efficiency. It is the official and legal transactional system of record for your business while a CRM system, which manages front-office tasks to help you boost sales volume, is not transactional in the same way.
In this blog post, we’ll dig a little deeper. Read on to learn about:
CRM, which stands for Customer Relationship Management, is responsible for managing the relationship between your business and its customers (current and potential). That involves centralising all customer-related information, from their personal details to customer service cases, queries and other interactions with your business, in one location - the CRM system.
The modern-day CRM system has evolved to do more than simply storing your customer data in one place. It can help facilitate customer engagement by:
The modern CRM system also comes with sales force automation capabilities. This includes:
Read about the features your ideal sales force automation software should offer in more depth here.
ERP, which stands for Enterprise Resource Planning, is used to improve process efficiency within a business. Like a CRM system, an ERP system consolidates critical business data into one location, creating a single version of the truth.
But rather than managing customer data and driving sales, an ERP system focuses on improving operational, process and cost efficiency. It’s all about managing back-office activities, such as:
Yes! A CRM system drives sales and an ERP system streamlines business operations to reduce overall costs. One cannot be substituted for the other because that’s not what they’re designed to do. Together, the two systems can maximise business growth.
Luckily, many solution providers offer both types of systems. For example, Microsoft Dynamics 365 offers an ERP system (Business Central or Finance & Operations, also known as Finance & Supply Chain Management) and a CRM system. And the two systems can be easily integrated which leads to a whole hoard of benefits, including:
All because your key data is available in one place! Read more on how a CRM system complements an ERP here.
While an ERP and CRM system may share some similarities, such as both having the ability to boost the efficiency and profitability of a business, they aren’t the same thing. Nor can one be used in place of the other.
For optimum efficiency, however, you should consider an ERP-CRM integration. In our guide, we cover how you can navigate an integration project.
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