What Is The Difference Between ERP And CRM Software?

ERP And CRM Are Two Types Of Business Management Software: Here Is The Main Difference And Which Option To Choose For Your Business

The success of a company largely derives from a correct organization between its various departments, so it is possible to use software for business management: what is the best solution between ERP or CRM?

The ERP system, which is a business resource planning program, deals with the operational management of the company while the CRM system deals with the management of customer relations: here are the main differences and how to choose the most suitable solution. suitable according to your business needs.

What Are ERP And CRM Systems?

ERP stands for Enterprise Resource Planning and consists of an enterprise resource planning system, integrating the different business processes such as administration, accounting, resource procurement, logistics, and much more. This type of system is useful as an activity planning tool to increase business productivity.

The main feature of an ERP system is the sharing of information between the different company areas: we no longer speak of single systems, but of a single integrated information system.

CRM, on the other hand, stands for Customer Relationship Management and is a very useful tool for managing relationships between colleagues, customers, and the company, to improve relationships, promoting profitability.

The CRM system, therefore, has the objective of creating a precise and timely overview of the relationships between the various subjects, managing information, and capturing the interactions that the company has with its customers, allowing it to measure their customer lifetime value.

ERP And CRM Differences

The main difference between CRM and ERP is that the former generates and organizes data relating to the customer, while the latter coordinates the organizational flows of the company, organizing them together in a single unit.

On a practical level, CRM is very useful for automating customer management processes, for analyzing the various procedures, for managing contacts between customers and sales activities, and for managing the work of the company team even remotely.

Among the best video conferencing programs to use from a PC to always stay in touch and up to date, we can mention Zoom, Google Hangouts Meet, and Microsoft Teams.

Instead, the ERP deals with managing everything related to the production department, accounting, and coordinating the distribution chain.

ERP And CRM: The Main Advantages

Choosing to rely on these systems for your business management can lead to a series of important advantages: in the case of ERP, it is possible to improve decision-making processes and make business production more efficient, while in the case of CRM the productivity of the sector is increased. sales and customer service is improved, secondarily helping in the development of data-driven plans.

Understanding which of the two systems to adopt or whether to adopt both is not so simple: usually, a small business reality can also use CRM only, but in larger companies, it is often necessary to implement an ERP software integrated with CRM, to guarantee the best performance.

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