Organizations need a structure for them to thrive, and having a software system is vital to the organization’s business operations. Today organizations use systems to streamline their activities. One is the CRM system while the other is the ERP system. These two software solutions may have differences but have functions in common. They both focus on productivity, automation, and revenue generation. Of the many systems available, this article will highlight CRM vs ERP and how each of them can benefit an organization.
Common Functions of ERP
ERP tries to look at the organization’s deficiencies to strengthen its business operations. The ERP system manages finances, human capital, inventory, and the supply chain. In financial management, the system looks at the efficiency of the tools because it is the core of the business. The ERP system ensures the financial tools in place are sustainable and that the company works within its budget. ERP system also ensures it manages the company’s human capital by distributing wages, managing employee hours, and approving leave requests. The system also monitors which projects the staff is working on while allocating available labor to projects that need a boost. The ERP system also checks on the inventory by having an auto reordering tool activated once the stores run dry. Being able to order products with the software gives the company an overview of how to run things and also control the production process.
Common Functions of the Customer Relationship Management System
The software’s main goal is to take care of the customer experience and to do those tasks, and certain tools have to be implemented to ensure the smooth running of the organization. An all-in-one CRM has the following features; contact management, client interaction tracking, database management, marketing management and lead management. Contact management helps track customers and keep tabs on them by alerting them of the discounts and offers available. The software stores the contacts and customer documents and uses them whenever necessary. The system also tracks customers and analyses their purchase history to gauge a customer’s purchase intention and interests. Interested parties can access company data because the software consolidates it. Having the data stored in one place also enables the organization to clear duplicate data from its system. Since the system is the organization’s data, advertising becomes easier for the organization. Advertising is a core developer for many organizations and how the campaign is structured through emails and texts determines a company’s trajectory. The software also focuses on getting leads from multiple sources to maximize returns. Users might gain leads from the internet, emails, referrals, or the organization’s website.
What’s the Difference
CRM is an automated tool used to help a company with sales, services, and marketing management and helps the company focus on gaining more customers. With a good system in place, the company can win its customers’ trust and add more services. By focusing on the customers’ needs, the company identifies other prospects and encourages them to do more business with the company continuously. The ERP system is used to manage the business and not the customer. The two systems use different approaches to increase profit. ERP focuses on cutting costs to improve profits and make the business efficient, while the CRM system focuses on generating more sales to make the business profitable. Companies widely use these two approaches, but when it comes down to CRM vs ERP, organizations have to choose which one works for them best.