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ERP VS CRM: Differences and Similarities and Which Do You Need?


With the help of technology innovation, you can now implement more effective strategies to grow your business. CRM and ERP systems are among the best systems you can integrate with your business. Are you curious about CRM and ERP systems? Learn more about these 2 systems and know which do you need.

CRM defined

CRM stands for Customer Relationship Management. It involves processes and systems to manage the interactions of the company with current and potential customers. As we discuss CRM, we are talking about CRM software. With this software, you can automate, organize and synchronize marketing, sales as well as customer service.

CRM was established to include various areas of customer experience to keep your customers satisfied and happy. So, they can be more valuable and consistent to your business.

ERP defined

ERP stands for Enterprise Resource Planning. While CRM is more on customer management, ERP focuses on managing your business. Just like the CRM, ERP enables fast sharing of standardized information on all departments. The company workers enter the information in the system, which can make real time, enterprise-wide exposure.

ERP system can make business processes more efficient. You can also get automatic alerts whenever there is any problem. It helps business departments to plan and formulate solutions to fix the issues. In other terms, it focuses more on data than operations. As you use ERP software, you can streamline business procedures across the board. You can integrate Microsoft Dynamics for Finance and Operations with Microsoft Dynamics 365 for Sales. It can help you to establish a good relationship with your customers.

ERP VS CRM: Similarities

To help you learn more about these systems, let us dive into ERP VS CRM similarities.

ERP and CRM systems typically analyze and store data in a relational database. These systems are delivered through SaaS or software as a service or traditional on-premises model, wherein the vendor controls the software in its own data center. It can be accessed by customers through the cloud. They also both handle companies, contacts as well as information about orders. Enterprise resource planning ERP and customer relationship management CRM systems are both beneficial to increase profitability of your business.

ERP VS CRM: Differences

ERP and CRM use different approaches to help your business become more profitable. CRM can increase your business’ profits by making greater sales volume. On the other hand, ERP can reduce overhead and costs. ERP can make your business more efficient by lowering the amount of capital for business processes.

How does CRM software work?

With CRM software, you can manage different business activities, including the following:

  • Monitor customer interactions with your business
  • Making data reports
  • Prioritize leads
  • Automation of customer service
  • Share sales and marketing collateral
  • Organizing marketing efforts
  • Sales pipeline management
  • Streamlining sales processes
  • Calculation of time spent on lead conversion to closing deals
  • Sharing customer profiles with co-employees
  • Management of business leads and more

With CRM software, you can provide your business with a central repository of monitoring customer interactions as well as customer data. It uses analytics that can also help your business to make more effective decisions in running your business. With that, it can lead to increased revenue, enhance customer service, and more. It also helps to increase the recognition of your brand, which can help you gain more customers for your business. It helps you to win the trust of your customers and make them consistent in choosing your business.

How does ERP software work?

The following are the activities you can manage with ERP software.

  • Supply chain management
  • Payroll
  • Inventory management
  • Reduce purchasing costs
  • Human resources management
  • Financial and accounting applications
  • Assessment of business needs
  • Standardize essential busies procedures
  • Automation of employee life cycle
  • Facilitate better project planning
  • Lower redundant tasks
  • Enhance the accuracy of financial data
  • Service knowledge base
  • Distribution process management and more

With an ERP system, you can have a single, shared database for all operational and financial data. It can also help with monthly reports and make a quicker data-backed decision that can affect the growth of your business. ERP software can also provide your business with more enhanced financial controls. You don’t have to worry about security because it comes with role-based permissions and a centralized system wherein only those authorized people can access the sensitive data. It can help to lower financial risks.

ERP VS CRM: Key Features

The following are the key features of a CRM solution and ERP solution.

CRM features

  • Marketing automation
  • Customer service / contact management
  • Increasing sales
  • Sales force automation

ERP features

  • Order management
  • Production management
  • Supply chain management
  • Procurement
  • Financial/ accounting management
  • Warehouse management and fulfillment

Do you need ERP or CRM, or both?

Do you want to know whether you need ERP or CRM, or both? In today’s modern world, you need a more innovative system to grow your business. Well, all size of businesses uses both ERP and CRM systems to make their business more profitable.

With the help of these systems, you can manage your customer relationship on different social media channels. With that, you can establish a good reputation with your current and potential customers. Both these systems are important for the success of your business. However, the matter still depends on your needs and standards if which one you’re going to choose or you’re going to choose both systems.


To sum it up, ERP and CRM systems are both effective partners to enhance the profitability of your business. It offers the right tools and opportunities to grow your business in a cost-effective and time-efficient manner.

Each system has its specific features. We hope to help with this ERP VS CRM comparison, you already decide which one is right for the needs of your business. Are you ready to enhance the operations of your business? Then, it is time to integrate ERP or CRM software into your business. These systems can provide the best tools to make business processes easier and quicker.

If you want to save more of your money, time, and effort for the success of your business, investing in CRM and ERP systems is the perfect solution.

I am Lucia by profession a blogger, tech geek and much interested in exploring digital world and new technology. I am also a mother, wife. I really loving fashion things and travelling.


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