CRM vs ERP: What’s the difference?
CRM vs ERP
These two terms refer to very different software platforms.
However, they are often confused with each other. In fact, some might not know how these platforms work and how they can help your business.
But there’s no need to feel intimidated by these acronyms. Today, we’ll break down the basic concepts for both concepts and platforms. Then, we will be
Let’s dive in.
What is a CRM?
The acronym CRM stands for Customer Relationship Management.
CRM platforms come in many different shapes and forms.
But in general terms, a CRM platform helps your business collect, manage, search, update and report on customer data.
For example, when a user visits your website and contacts you via a live chat, a profile for them will automatically be created with their contact information and a transcript of their chat conversation.
Over time, this profile is updated with details such as number of website visits, purchase history, email history and more. All in a unified platform.
In short, CRMs help your business keep track of all your customer data and your multiple interactions with them.
Want to learn more about CRMs? Read our in-depth guide on what CRMs are and how they can help your business.
What is an ERP?
The acronym ERP stands for Enterprise Resource Planning.
And just like with CRMs, ERPs often come as software platform solutions.
ERPs help you to integrate and streamline separate aspects of the operations of your business such as accounting, procurement, project management, supply chain operations and more.
By creating a centralized and shared database for all these business processes, ERPs reduce instances of data duplication and data errors across all sectors of your organization.
ERPs can reduce your operations costs, improve efficiency, reduce errors and improve collaboration across your company.
For many companies, ERPs are crucial for managing the inner workings of their daily operations.
What’s the Difference Between a CRM and an ERP?
Now, let’s break down the differences between CRMs and ERPs.
In general terms, an ERP focuses on optimizing the internal use of company resources in order to lower operational costs and maximize operational outputs. On the other hand, CRMs focus on optimizing interactions with customers via data collection, sales and marketing features and more. In short, the end goal of CRMs is to maximize customer revenue.
While some ERPs might store customer data and have CRM-like features, their lack focused features that are staples of CRM platforms.
Signs that your business needs a CRM.
At this point, you might be asking yourself if your business needs a CRM?
The truth is that it depends. After all, every single business has different business needs.In order to help you, we’ve written a guide on 7 signs that say your business needs a CRM.
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