What Are The Differences Between ERP And CRM, And Which One Does Your Business Need?
If you are a business on the path of digitization, then ERP and CRM are two terms that you have definitely come across.
To start with, ERP or Enterprise Resource Planning software help run a business by providing finance-related databases to different nodes of an organization along with other finance-based services. CRM or Customer Relationship Management software typically deals with customer data that is used by the sales team.
So, while the difference between the two is quite apparent, there is more to it, and there are also aspects of both ERP and CRM that intersect. So, let’s take a deeper look.
What Are The Key Benefits Of ERP And CRM?
When a business adopts an ERP, they are basically creating a shared platform through which all the financial and business data will flow. This means leaders will be able to access analytics at their fingertips, and employees will be able to find any necessary data for creating reports.
Organizations that use ERP systems generally close their books sooner, as the finance team can work at peak capacity with the help of a shared database.
A CRM platform is usually used by the sales team in an organization, where they store all the customer data and create analytics to drive sales. It also helps the business serve the customer better by providing streamlined support and other services.
What Are The Similarities?
At the end of the day, both ERP and CRM are data-operations platforms. But, they are created keeping in mind two completely different ends of an organization. While these ends may also intersect in certain aspects, usually the finance team and the sales team operate in silos.
You may also find ERP software that performs certain CRM functions, but CRM software will usually not provide you with any finance process tools.
Which One Do You Need?
In today’s age of rapid business digitization, it is safe to say that any growing organization can benefit from both an ERP and CRM. Organizations that are using spreadsheets for maintaining finances can definitely upgrade to an ERP and access better means of running finances. Similarly, if you want to scale up your sales, getting a CRM is a must.
But, if you are at the stage where you need only one, you need to consider which aspect of your business is more likely to grow faster once you start scaling up. If you are already finding your finances hard to manage, then scaling up can ruin your entire system if you don’t have access to an ERP.
On the other hand, a CRM will help scale up and maintain better relationships with customers.
While CRM and ERP are necessarily both data processing platforms, they are aimed at different segments of a business, sales, and finances, respectively. Both the software are a necessity to digitize and grow a business.