Investing money and finding what is best for your brand requires much effort. But this article helps you differentiate between CRM and ERP. Read this and find out for yourself which one is most useful.
To stand first in the class, you must know every answer and subject by heart, right? The same goes for every business sphere. To stand tall and achieve more growth and fame, you must be familiar with all the technologies, systems, and advantages in the world. Sometimes it may get tough to stay up-to-date. But today we are helping you understand what ERP and CRM are. And more than that, we help you with the differences they have in between.
What is CRM?
CRM is an acronym for Customer Relationship Management. CRM works as a digital charmer that builds deeper connections and fosters unwavering loyalty between customers and brands. It collects data, analyzes it, and then helps in prediction.
What is an ERP?
ERP stands for Enterprise Planning Resource. It is comprehensive software that integrates all your core and important business functions into a single platform. It takes care of accounting, finance, inventory, human resources, logistics, production, and everything else.
By getting an idea of what CRM and ERP are, you may get an idea of what kind of services they offer. But if you don’t want to burden your mind, then here are some key differences between CRM and ERP.
As ERP takes care of finance, human resources, and other things, its main focus is always on optimizing and integrating internal processes. It takes care of the core parts of the company and sees that they run smoothly.
Whereas CRM is more about the customer and their experience, its main focus is that every customer can navigate the system with ease and doesn’t face any difficulties. CRM is more important to customers.
ERP stands for Enterprise Resource Planning, which is why it handles the human resources department, supply chain, and finances. If one finds a problem in any of the given services, ERP has to handle the situation.
CRM takes care of functions like addressing sales and collecting customer data. The core function is that customers don’t face any struggle, and their interaction gets enhanced.
3. Data usage
ERP has to collect data from all the departments to enhance the overall company image. It helps to stand tall by knowing your own company very well.
CRM collects customer data so that it can offer the best services customers may need. The collected data also helps in predicting the future and needs of customers.
ERP is all about the insides of the company. That is why it takes care of everything runs smoothly in any company. This may include collaborating with other work departments and knowing and checking their processes.
CRM is all about customers and their relationship with brands. For the same reason, it takes into consideration that not a single customer faces a struggle while navigating the system or for any other reason.
ERP is connected with departments that don’t need much upgrading. Finance, HR, and other departments follow the same pattern. So, ERP offers a long-term lifecycle because there is no need to update the system as there are the bare minimum updates.
CRM is connected with technology, which gets updates every other day. Which makes CRM’s lifecycle a little longer. Because if you don’t update and walk with the world, you may be left behind.
6. Return on Investment
ERP offers services like finance, inventory, and other important services that help a brand work more efficiently. Which is why it must take care of cost and money flow. If they get increased operational efficiency, reduced costs, and other things.
In CRM, return on investment is measured in terms of increased operational efficiency, improved customer satisfaction, and a more effective marketing campaign.
ERP focuses on main objectives like internal efficiency, collaboration, and data accuracy. It takes care of all these, so internal services run smoothly.
CRM focuses on objectives like improving customer engagement, sales performance, and marketing effectiveness. All together, service helps and enhances customer’s experiences
Sometimes things can look the same when you glance at them from far above. But while you look at them closely, you find they are completely different things. Now that you have read this article, find out for yourself if ERP and CRM are the same or not. Let us know in the comments.