a person working on a computer
Share on facebook
Share on twitter
Share on linkedin

ERP vs CRM: What’s the Difference?

Businesses look for every single possibility to increase productivity and efficiency. They look at their systems, tools, and processes to gain the slightest edge.

Companies invest in productivity tools with the hopes that employees will use them and be able to do more with fewer resources.

Two tools that companies use are ERP and CRM systems. What’s the difference between them? Does your business need one or both systems?

About 91% of businesses with 10 or more employees use CRM systems. Do you need to do the same?

Keep reading as we compare ERP vs. CRM so you can decide which tools you can use to increase productivity in your business.

ERP vs. CRM: The Showdown

Let’s start off by understanding what CRM and ERP mean. CRM is a customer relationship management tool. ERP is an enterprise resource planning.

CRM systems help businesses manage the entire sales process and customer service. Some CRM tools also allow marketers to see how prospects engage with newsletters and other types of content.

This enables companies to shorten sales cycles, improve the customer experience, and increase revenue.

ERP doesn’t quite work that way. ERP is a system that allows departments to centralize information. This helps you improve business processes across departments.

The improvements aren’t limited to sales, marketing, and customer service. With ERP, managers, HR, accounting, and IT all realize the benefits of improved business processes.

Should You Choose ERP or CRM?

There isn’t a right or wrong answer here. Look at your business needs and what you want to accomplish with each tool.

Some companies only need a CRM, while others want to implement ERP. Many companies implement both at the same time.

For a small business with few employees, a CRM would suit your needs just fine. You’ll be able to streamline the customer management process with one simple software solution.

You can automate messages to prospects and clients, get customer data in real-time, qualify and prioritize leads, and understand which products sell.

These are very affordable for most small businesses. Even solo practitioners can benefit from a CRM system.

A larger company that has information trapped in silos between HR, accounting, and marketing benefits from ERP.

You can use ERP to simplify the onboarding process for new hires. ERP software lets you eliminate and reduce redundancies, manage your supply chain, manage payroll and financial data.

You’ll want to weigh the costs and potential savings of each solution before you make the investment.

Do You Need ERP Software or CRM Systems?

When comparing ERP vs. CRM systems, you know that both tools can help you improve productivity and profitability. Deciding which tool is right for your business is easy once you know your business needs.

Small businesses that want to have an easy way to manage customer relationships should invest in a CRM. Companies that need to manage various aspects of the business should invest in ERP.

You might decide that your business benefits from ERP software and CRM systems.

For more tech tips, be sure to visit the blog today.


Some other articles you might find of interest:

Make your business rock with these business plan writing skills:

Startup’s Guide to Write a Business Plan

Would you like to know how investors value a startup?

How Do Investors Value a Startup?

Join Our Small Business Community

Get the latest news, resources and tips to help you and your small business succeed.