From Sales to Operations: Evaluating the Role of ERP and CRM

The new generation of ERP and CRM systems work together to track data and streamline core processes, advancing your business to new heights

Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) softwares offer power tools and features that make it priority investments for business sustainability and growth. Both use similar data and might have some overlapping features however they have inherently different principles, usage and functionalities.

This blog will help you decide whether CRM, ERP or an integration of both is the best choice for your company.

ERP and CRM Systems

What is a CRM?

Customer Relationship Management (CRM) offer tools to maintain strong ties with customers. This is the monst prominent software if the company’s goal is better customer loyalty, synergy and ROI for marketing. There are 2 main focus departments of CRM: Sales & Marketing.

How does a CRM Software help these departments achieve success?

Utilizing an extensive collection of customer data — including contact details, buying patterns, and past engagements — marketers possess the ability to craft focused campaigns that effectively engage and retain customers. By automating messaging processes and dividing their audience into segments, they ensure that communications are delivered to the appropriate recipients at optimal moments, eliminating redundant backend efforts. Furthermore, the inclusion of reporting functionalities provides valuable insights into CRM analysis, enabling easy identification of products to prioritize for promotion.

Benefits of CRM include:

• In-depth profiles of potential clients and buyers
• Increasing leads and opportunities
• Providing consistent services to translate these leads into customers
• Automating marketing campaigns
• Analyzing customer purchasing pattern
• Optimizing and streamlining sales’ processes

What is an ERP?

Now we will take a deeper look into Enterprise Resource Planning (ERP). ERP systems offer applications for optimizing and managing every-day processes. It helps business and operations reduce labor costs and automate admin processes that goes behind running a company.

Benefits of ERP include:

• Track real-time business data across departments
• Process orders, update accounts and automate alerts for billing and order fulfillment
• Manage supply and manufacturing chains
• Manage benefits, payroll, and other information of employees and consultants
• Customize project workflows for the department and enterprise-level operations

Making the Right Decision for your Business

Now that we have understood the features of each software and how they help in the success of a company, let us understand how to make the right choice for your business. Despite having similar data requirements, their functionalities vary vastly.

CRM primarily caters to consumers and in building a larger customer base while ERP caters to the business’ operations. The former focuses on customer acquisition and retention while the latter aids in accounting, order procurement, management of vendors, etc. Though differently, both provide great ROI. CRM helps boost revenue through more sales while ERP aids in cutting costs.

The factors to take into consideration while deciding which software is the apt choice for your business are Size, Scale and Complexity.

If your company is in it’s early stages then CRM might be a better choice since it will help grow and build your customer base. An ERP System might be a better choice for your company if it consists of complex business processes and your main goal is to maximize ROI and cut operational costs. ERP systems could be put in place to streamline processes or replace non-integrate applications. Another reason to prefer CRM is if syncing sales and marketing functions would be beneficial for you.

Main Takeaways

• If your primary focus is on attracting and retaining customers, a CRM can play a crucial role in your core business model. It directly impacts your ROI from the start. On the other hand, if your emphasis lies in resource or asset management, an ERP is a more fitting choice.
• Consider the level of growth you desire for your company. As your business expands, an ERP becomes increasingly valuable in efficiently managing diverse processes.
• If you require assistance in managing business growth, CRMs can help by attracting new customers. However, if streamlining operations is your priority, implementing an ERP will be more beneficial.
• Identify your company’s most significant weakness. Software solutions can be utilized not only to capitalize on strengths but also to address weaknesses. Whether it’s improving front-end or back-end processes, choose either a CRM or an ERP accordingly.
• Evaluate the urgency of software implementation. CRMs are relatively easier to install and provide immediate benefits, while ERPs may require more time and effort to set up.

Maximizing Results through ERP and CRM System Integration

If you wish to enjoy the extensive benefits of both CRM and ERP systems, integration might be the best choice for you. ERP will help you streamline operations. It can also help you generate cohesive data and enjoy cost and time savings. CRM will help you target both prospective and existing customers. Altogether, you can eliminate friction and achieve a better end-to-end customer experience.

ERP/CRM Integration FAQs

Why do I need to integrate my ERP and CRM systems?

You should never have isolated systems for both ERP and CRM. Fortunately, many ERP vendors offer out-of-the-box functionalities that can integrate popular CRM suits. For instance, our product FACTS ERP provides you with customizable software which will seamlessly integrates with your pre-existing CRM system.

Does SAP provide both ERP and CRM software?

SAP (Systems Applications and Products in Data Processing) sells both CRM and ERP products. Businesses can use one SAP system or integrate their ERP and CRM software.

Is CRM a type of ERP?

Customer relationship management is one of the five main foundations of ERP. Basic CRM tools are included in some ERP systems. For full capability, however, you must use a comprehensive CRM software package.

Request a free demo of our products today, and experience how integration can drastically improve your organization’s efficiency, profitability, and customer satisfaction.