To make life easier for you, let's have a detailed look at their differences and features.
What is a CRM system?
A CRM system is generally an approach that's used to manage a business's interaction with its current and prospective customers.CRM systems come in three options: desktop systems(Operate on a single computer); client/server system(Come with a central database stored on a server installed with self-hosting software on every user's laptop/PC) and Cloud-based systems(Supplied and hosted online by third-party providers).In terms of functionality, a Customer Relationship Management system(CRM) helps manage customer data by supporting sales management, integrating with social media, facilitating effective team communication and delivering actionable insights.
This kind of system provides overall mobility and accessibility to an ecosystem of bespoke apps, ensures efficiency and accuracy. It does this by turning existing customer data into valuable, actionable insight that can effectively transform your business.
Because of CRM development services, companies enjoy unlimited access to the latest information plus update their records stress-free.
Key features of a CRM system
1. Contact management
This is where all the customer information such as contact details, and service conversations are stored and updated.
A CRM system makes it easy for companies to scale to increase their sales and profits. Data is standardized for easier, future accessibility.
2. Lead management
The feature allows users to monitor web traffic activities, targets, and tasks from start to the end.
3. Sales forecasting
It empowers users to get better accessibility and visibility over their pipelines, track targets and monitor leads.
Sales forecasting reports can be used to manage and motivate your employees.
4. File and content sharing
It's the location where all the uploaded information is stored for easier and instant sharing with team members.
5. Email tracking and integration with Outlook and Gmail
This is where the instant clients email syncing process takes place. It empowers the CRM system to enable companies to keep track of their existing and potential customers plus leads without logging in and out of various systems.
6. Instant messaging between employees
Team members can engage in productive communication with each other thus boosting teamwork. In other words, it's where both management and employees give or get urgent attention or instant feedback.
7. Dashboard-based analytics
Stores and displays meaningful, intuitive and customizable information based on their respective priorities.
Key Functions of a CRM System
Investing in an effective CRM application development solution comes with numerous benefits including improved efficiency, more accuracy, and better sales.
Major functions of a good CRM system include:
- Offering top-notch customer support
- Analyzing purchasing patterns
- Automating & managing marketing campaigns
- Automating redundant tasks
- Streamlining the sales process
- Identifying new leads
- Enhancing customer relations
- Enhancing Contact Management
- Client Interaction Tracking
- Database Management
- Marketing and Campaign Management
- Lead Management
What is ERP?
An ERP system is used for business management by enhancing the efficiency of business processes. In addition, ERP System allows all departments within an organization to effectively share standardized information rapidly.
Employees can use the ERP system to create a real-time company-wide snapshot. This system helps to identify potential problems by creating instant automatic alerts in all vulnerable areas. In the end, affected departments can successfully plan and tackle arising issues proactively before they get bigger.
Besides, ERP simplifies the streamlining of business processes within an organization. It's implemented and integrated across different departments, unlike a CRM system that mainly focuses on the sales department.
With an ERP system, organizations can focus on better decision making since there are fewer errors involved.
Key features of an ERP System
1. Centralized Modules
These features enhance the management of grouped tasks even when using multiple screens or applications. This is where all the vital operations information is housed within an ERP system.
2. Integration
ERP is seamlessly integrated for effective functionality.ERP applications allow users to use the system effectively and easily.
Ultimately, the applications make it possible for multiple departments to share information freely and easily in real-time.
3. ERP Database
All ERP systems should have a central ERP Database where various applications can retrieve useful information thus promoting effective teamwork and overall productivity in an organization.
Key Functions of an ERP system
- Manufacturing
Execute financial management and Accounting functions including accounts receivable, accounts payable, fixed asset management, general ledger management, financial forecasting, tax calculation, and budget development.
- Human resources
ERP development solution software boost efficient human capital management including important tasks such as PTO approval, wages distribution, sick leave request, update accounts, process orders, manage payroll & employees' personal information and employee hours scheduling among others.
- Customer relationship management
- Inventory management
- Distribution
- Business intelligence
- Tracking and Visibility
ERP system can also be utilized to:
- Get crucial alerts on looming problems
- Record real-time business process information
- Track manufacturing and supply chains
- Process orders
- Develop enterprise-wide strategies
Key Differences CRM vs. ERP
What's the difference?
Both CRM and ERP systems deploy different approaches to increase profitability. While CRM focuses on increasing profits through enhanced productivity and gigantic sales volume, ERP focuses on costs cutting and eliminating overheads.
Generally, the five main differences between CRM and ERP are;
- End goal,
- Ease of implementation,
- Ease of data migration
- Costs
- Type of company
Conclusion
Deciding between CRM and ERP is influenced by three main factors namely needs, scale and investment.CRM is designed to improve raw sales numbers, and ERP is designed to minimize the cost of every sale.
Additionally, CRM systems are more cost-effective as compared to ERP systems. Nevertheless, both systems are ideal for small and medium-sized enterprises. Fortunately; with the help of a reputable, ERP and CRM development company, businesses can start with CRM then upgrade to compatible ERP later.
