How Do ERP and CRM Differ?
The primary distinction between an ERP and CRM is what they are used for. While ERP solutions control all of the organization’s business processes, CRM platforms manage the interaction with present and potential clients.
An ERP may occasionally be referred to as the back office while CRM is referred to as the front office.
However, some ERP programs also come with a CRM program.
There are significant distinctions to take into account while choosing between these two options.
While ERPs concentrate on cutting costs, CRMs prioritize growing sales.
Your customer care team provides an experience that fosters brand loyalty, and CRM equips your sales team to close as many transactions as feasible. It enables you to make hard-to-refuse customised offers to your customers, resulting in repeat business.
Contrarily, ERP aims to cut back on wasteful spending by streamlining internal business operations. Although some of the features might lead to higher sales, that is not what the solution is trying to achieve.
CRMs Put an Emphasis on External Processes Like Sales and Customer Service ERP primarily focuses on management and internal processes
You can better handle all the communication channels outside of the firm with the use of CRM. Additionally, it enhances internal procedures by centralizing all customer and lead data, facilitating team communication, and streamlining information sharing. But improving external communication is the aim.
ERP, on the other hand, focuses on internal management and processes to improve your business, cut back on wasteful spending, and make better plans and decisions. It gathers the operations of all significant departments in one location so that you always have the most recent information to manage the business effectively.
ERPs combine information from several tools, including CRM
CRM is a subset of SAP, whereas ERP is referred to as the superset of SAP (System Analysis Program Development). Data from supply chain, finance, network and consumption management, customer relationship management, and other sectors are combined by ERP. It’s a location where all of your company’s data, including the details of your clients, should be kept.
The data upload to ERP can be automated thanks to a wide range of conceivable interfaces.
