Most business owners often confuse the difference between an ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management). This is because the two mentioned systems have lots of similarities. But despite their similarities, you will still notice differences, especially when it comes to their core functionalities.
The two systems are an important solution in most businesses. These are used to boost the productivity and revenue of an establishment at the same time. In this article, we will talk about the differences you should know between the two systems. So, if you want to know more about it, then keep on reading.
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Defining Customer Relationship Management System
CRM is a type of business system intended for storing and recording every detail about the customer and the interactions happening between the clients and the business. The good thing about this system is that it can be shared with the entire organization. To further explain the concept of CRM, we will give you an example. A sales representative makes a call with a potential client. The CRM will record all the details notable in the whole conversation, which includes the customer’s contact details.
The information recorded by the system will be used by a marketing specialist to create a customized newsletter. The only thing that a marketing person should do is to get all the recordings from the CRM system. Using the proper business system, a company can segment and organize the overall experience of the customer while working with you.
In addition to that, this system is also designed for establishing sales projections. You can also communicate with your current and potential customers, manage invoices, and a lot more. A Customer Relationship Management system is used to boost the sales and efficiency of the business while improving the accuracy of the customer data. This could lead to a more enjoyable and enhanced customer relationship.
The following are some of the most notable features you may see in the CRM system:
- Determining possible leads
- Automate repetitive activities
- Provide the customers with the high-quality support they deserve
- It gives you free access to analyze any possible purchasing patterns
- Create and monitor top-rated marketing campaigns
Defining an Enterprise Resource Planning System
One of the similarities between ERP and CRM is that both of them work to streamline every business operation. The difference between the two is that the ERP system is designed to be used and integrated into several departments. In contrast, the CRM system is only used for monitoring the sales of an organization.
One of the good things about the ERP system is that it provides the business with interrelated processes. This means that you have free access to any information about the department you handle. What’s more? You can access it anytime you want. If there is any issue with the department, the assigned recipients will be notified immediately.
With this type of system, the business can pay more attention to the company information compared to operations. If there are any errors in the system, the participants in the organization can help together to derive better decisions.
The following are the notable features included in the Enterprise Resource Planning system:
- Access and send real-time business information
- Receive notifications regarding the department issues
- Manage and track hiring initiatives with ease and convenience
- Pay close attention to the manufacturing and supply treads.
- Keep an eye regarding the employee’s details, payroll, and benefits
- Process orders
- Update accounts
- Establish wide and effective strategies
What to Choose Between ERP System and CRM System
Are you running a business? Do you want to improve your sales? If so, you might have a hard time picking which of the two systems you should use first. This is quite tough considering that both of them have almost the same advantages. But considering that you want to improve your business profit and sales, then the first system you may want to implement is Customer Relationship Management.
On the other hand, the ERP system is used by a business that has accurate and more precise inter-departmental information. Before cutting your business cost, the first thing you should do is to earn profits. Besides, a lot of organized companies out there are still struggling to earn enough sales to fund their company. You can only perform continuous business processes if you have stable sales revenue.
In this case, it would be best if you will use the two mentioned systems. A Customer Relationship Management system is designed for driving more sales, and the Enterprise Resource Planning system is used to reduce the overall business costs and streamline the operations.
When the two systems work together and manage it properly, you may notice an instant growth in your company sales and popularity. But you don’t have to worry anymore. You can get the functionalities of the two systems by using Microsoft Dynamics 365.
Microsoft Dynamics 365
You don’t need to choose which one to use first between CRM and ERP when you have Microsoft Dynamics 365. This new system has the combined functionalities and features of ERP and CRM cloud solutions. This means that you can use it to boost operations, financials, sales, customer services, and a lot more.
In addition to that, Microsoft Dynamics 365 is equipped with loads of application software that can provide your business with useful benefits. This can lead to a notable improvement in the processes and sales of your business.
Indeed, the combination of the two systems is a win-win strategy. The good thing about this system is that it offers different subscription plans that are perfect for every business budget.
Conclusion
To conclude, the ERP and CRM systems are both important aspects that will contribute to the overall growth of your business.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.
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