Businesses that want to automate a core business process usually look at the two major software solutions, i.e., Enterprise resource planning (ERP) and customer relationship management (CRM). Also, ERP software development helps companies run businesses successfully, which will interconnect with a financial and operation system to the central database, whereas CRM supports managing how clients interact with businesses. This article will also help you identify the key characteristics of both ERP and CRM and how they differ.
What is Customer Relationship Management (CRM)?
CRM systems are designed to record and maintain track of every detail about contacts with customers. The organization as an entire can share the standardized data. For example, during a call with a potential customer, an inside sales representative may add new data, like the prospect’s contact information and notes from the conversation.
A marketer may then utilize that data to create a fresh, customized newsletter. To get to the record, all they need to do is to access the CRM system. Organizations can organize and divide up each aspect of the customer experience with the correct system.
CRM systems may also provide sales projections, guide customers through the sales funnel, handle invoices and connections, and many more. A CRM enhances productivity, boosts revenue, and provides more precise customer data. Customer interactions are improved as an outcome.
What is Enterprise Resource Planning(ERP)?
ERP software is intended to streamline corporate processes, much like a CRM. A CRM focuses on the sales side of the organization, whereas an Enterprise Resource Planning (ERP) system is implemented and linked across several divisions.
An ERP system’s primary function is to manage particular business processes cohesively. As a result, you can obtain real-time, standardized information from any department. Any problems are sent to the designated recipients as alerts.
At that point, ERP development company may concentrate less on operations and more on data. Organizations can make better decisions and make fewer errors.
Features of CRM
#1 Automated Workflow
CRM systems give you the power to automate your workflow, which will help you save time and money and boost productivity. For example, you can use customized rules within your CRM to run marketing campaigns and automatically send abandoned cart emails, follow-up messages, in-app notifications, etc.
#2 Customization
The CRM is the best option if you want to customize your software. You can modify your app to ensure it meets your requirements.
#3 Marketing Support
CRM is the most valuable tool for marketers who want to strengthen their strategies and techniques. If you have integrated a CRM, you can segment the contacts into various groups to create the targeted campaigns.
#4. Analytics
It gives you an in-depth view of your client data, which gives the necessary information to create a more intelligent business decision. You can also see your missed interaction and the successful analytics report to improve your strategy.
#5 Contact management
These tools give you an in-depth view of your interactions with customers. This feature also gives historical info on the communications that have been interchanged between the clients and your organizations. It will also collect contact details and update the data in real-time.
#6 Third-party integrations
It allows you to connect with other programs to enhance your CRM capabilities. For instance, you can integrate your existing CRM to develop compelling email marketing campaigns tailored to individual clients.
Features of ERP
#1 Tracking and Visibility
ERP gives you an excellent tracking and visibility function, which is particularly useful for supply chain management. However, by understanding how your supply chain is moving, you can prepare for delays and other issues. Hence, you will get a real-time tracking update of your inventory.
#2 Sales and Marketing
This component helps you track the campaigns, orders, and metrics of your data. Just like CRM, this module will help you to provide an overview of the audience, which allow you to understand the needs and will create a successful marketing campaign.
#3 Financial Management
Your company’s finances must be in a good position. However, an ERP system helps you monitor your financial data, greatly benefiting businesses with various revenue expenses and streams.
#4 Integration
ERP system is integrated, meaning a software development team can access the information from different departments. However, info is stored in a centralized location, and employees can get the reference from a single source. Hence, it is simple for the staff to remain on the same page.
#5 Analysis and Reporting
ERP system will collect and analyze the data to create customized reports for your businesses. As we know, the data is collected from various resources, giving you an in-depth view of different departments.
#6 Human Resources
With an ERP, you can handle the human resource processes, like hiring, onboarding, and interviewing. Like the other ERP components, the HR module can save time and efficiency and help decrease errors.
#7 Automation
ERPs can help automate various tasks, including invoices, reports, and payroll. Also, reduce the time spent on tedious, repetitive tasks and concentrate on the integration. Hence, this helps to minimize the risk and human errors which occur due to manual entry.
Difference between ERP vs CRM
| Factors | ERP | CRM |
| Focus | It helps you in managing the overall business procedure. | It will manage customer interconnection and relationships. |
| Scope | Covering a vast range of business functions. | Usually focus on sales and marketing services. |
| Modules | It covers the modules like finance, HR, inventory, etc. | It covers marketing support, sales, and marketing automation. |
| Goal | Streamline internal processes and improve efficiency. | It improves customer satisfaction and will also help you to drive sales. |
| Data integration | The ERP module helps to implement the data across an entire organization. | This module concentrates on the client data and will integrate with the other systems like ERP. |
| Users | It is being used by employees across various departments. | Usually used by the sales, marketing, and customer service teams. |
| Flow of data | It gives you a facility to communicate between the multiple departments of an organization. | Improve connections and collaboration with customers. |
| Essential Functions | Resource planning, inventory management, financial management. | Sales automation, lead management, marketing automation, and customer service. |
| Decision making | It helps you in making wise decisions for your organization. | Assists in making tactical decisions that meet customer’s decisions. |
| Examples | Oracle, Microsft Dynamics, and SAP. | Hubsopt, Zoho CRM, and Salesforce. |
While the main objectives of Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems differ, they frequently function well together. Many firms integrate their CRM and ERP systems to have a complete solution that handles internal operations and customer connections.
Conclusion
Choosing between ERP and CRM for your business is the most crucial task that needs careful consideration. These modules have features that will address particular aspects of the business operations. Whether you go for the detailed approach of Enterprise Resource Planning (ERP) or the client-centric focus on Customer Relationship Management (CRM), both have unique business goals and challenges.
However, the role of ERP is necessary as it streamlines processes and will also help to enhance overall efficiency. If you want to know about the services, connect with an ERP software development company in India that will give you a customized ERP solution to meet the diverse needs of businesses across various industries. Additionally, if you’re looking to boost your online presence, consider SEO services in Ahmedabad to ensure your business ranks higher and attracts more customers.
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