Most growing companies have this doubt whether they should go for a CRM or an ERP. While on the outset they may look like they have the same functionalities, but the reality is far different. No doubt, there are a few overlapping features of the two, but their core functions are very different. In most of the large and successful companies, both ERP and CRM work hand in hand towards the larger goal of the company.
To understand which among the two is best for your company, it is important to have a look at them separately. This would make it easier to see how both the systems play a role in improving efficiency and sales of the company.
ERP mostly handles the back office part of it like processes, systems, accounts, inventories, stocks etc, whereas CRM is all about front office like customers, campaigns, information etc.
The goal of ERP software is to make business processes more efficient and decrease money spent on managing those processes. ERP software is designed to manage key components of your business, from accounting to human resources to inventory and supply chain. ERP software is also highly data-driven. Because it provides an integrated approach to company systems, ERP software can provide updated information like reports and track issues and trends. This allows you to head off potential problems and focus on business management and planning.
CRM, on the other hand, manages a company’s interactions with current and potential customers. CRM software is used to organize, automate and synchronize sales, marketing, and customer service. CRM can be used by executives to create sales projections, by sales reps to maintain contact with clients, by shipping clerks to verify addresses, and by the billing department to create invoices. The goal of CRM is to provide a comprehensive store of customer data that can be used to increase sales, improve customer retention, and make customer relations more efficient.
Though similar in effect, ERP and CRM systems use different approaches to increase profits. ERP focuses on reducing overhead and cutting costs. By making business processes more efficient, ERP reduces the amount of capital spent on those processes. CRM works to increase profits by producing greater sales volume. With a standardized repository of customer data, it’s easier for everyone, from executives to sales reps, to improve customer relations. In turn, those improved relations translate into increased brand loyalty and profits.
Now the question comes what do you need for your company a CRM or an ERP. It will purely depend upon your priorities for your company and where does your company stand currently in terms of scale and size. If you have just started and are in the process of building a customer base, maybe you can wait for a while before getting a full-fledged CRM software.
However, if you invest in a good ERP right at the start of your business, it can help you streamline your processes, keep accounts in track and give you access to real-time data so that you can take fast and efficient decisions. Once your company grows, you will not face any issues in scaling up your processes if you have a robust ERP in place.
To know more about ERPs and how EPPS ERP can help get in touch with us here.