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What is the difference between ERP and CRM?

Enterprise Resource Planning

ERP stands for enterprise resource planning. It is an immense software that concerns every aspect of the activity. You can acquire a single suite or create your individual out of different modules from a variety of vendors.

Customer Relationship Management

CRM stands for customer relationship management. It is used by sales, marketing, analyze customer interaction and business development departments to manage records throughout the customer lifecycle.

Difference between ERP and CRM

1. CRM is defined as software that lets the business to trace every action with the customers and clients. ERP refers to a software program that assists the business to manage its sales processes, going on beyond the organization.

2. Customer Relationship Management is the system that should analyze and systematize customer communications, maintain the sales pipeline, support, upsells, track customer data and generate dashboards and reports on this information. Furthermore it should: organize marketing efforts, streamline your sales processes, share marketing, calculate time spent on converting leads to closing deals, automates customer service and sales collateral, learn which products/services sell best and when, prioritize contacts, maintain inventory based on historical sales information, cooperate to sell as a team, manage your organization contacts, manage your organization leads, share customer profiles with ally, see when and where leads come from etc.

3. ERP applications consolidates the data provided by various functional groups of the company and also automate and maintain back-office business activities and tasks, such as: accounting and finance, HR and payroll, purchase, manufacturing, e-commerce accounting software, distribution process management, excellent supply chain management, services knowledge base, project management, reduce redundant tasks, lower purchasing costs, standardize critical business procedures and streamline business processes.

4. CRM concentrates on boosting sales, but ERP gives prominence on decreasing costs.

5. ERP was developed earlier than CRM.