In simple words, CRM is a popular form of software widely used by businesses to manage the relationship with their customers and clients. ERP is different. CRM can be just a part of an ERP, while the ERP is a unified program, which can be used by an organization, from managing business processes to maintaining stocks in a store, to handling the hiring process, to administrating the service-delivery, to processing salaries. With ERP, an organization is able to put all its emphasis on the enterprise resource planning as well as increasing the overall business efficiency, effectiveness, and economy of the enterprise.
However, Customers Relationship Management (CRM) and Enterprise Resource Planning (ERP) are software used by organizations to increase their portability, but they both used for different purposes. The first one is simply a system used to track interactions between a business and its customers while the other one is a complete package which is comprised of several different modules.
Here are some key differences between CRM and ERP systems:
|BASIS FOR COMPARISON||CRM||ERP|
|Meaning||Computer software ensuring businesses to record every transaction and interaction with the present and prospective customers||Integrated pre-packaged computer software letting organizations manage and control business processes|
|What is it?||Subset||Superset|
|Developed in||1990||1960 -1970|
|Utilized in||Front office activities||Back office activities|
|Focuses on||Increasing sales||Reducing costs|
Shortly known as CRM, a Customer Relationship Management system is a computer software application developed to keep records of transactions taking place between customers and a company. The core objective of implementing CRM is that it builds trust in the customers for the company and maintains a healthy long-term relationship with them. By using this sort of software system, an organization experiences a maximized satisfaction level of customers on it.
CRM helps businesses consolidate name, phone number, address, email and other details about existing customers. Also with CRM, a business can record interaction related sales, purchase, l
An Enterprise Resource Planning or ERP is a full-fledged and pre-packaged business management software system which is now used by small-medium businesses to improve their performance, profitability, and productivity.
This software can also collect information from different departments of an organization, and then can record, integrate, and interpret that information to both internal and external management of the organization. With ERP, a business can integrate key areas of businesses like purchases, sales, manufacturing, human resources services, inventory, etc. and smooth all its processes and the flow of information across different departments.
The prominent feature of ERP is the shared database that provides an array of functions which are used by the various departments of an organization. When this software is implemented in an organization, all its departments can access updated information. In addition to this, the entity is also able to analyze the profitability, performance, and liquidity at any point in time.
This feature in an ERP comes by the shared database that provides a range of functions which are beneficial for different departments in an organization.
The most important advantage of an ERP is that it is an integrated system which minimizes the redundancy of data. It follows standardized processes, procedures and reporting which are generally followed across industries.