An ERP is integrated software that manages a company's internal processes such as accounting, production and human resources, while a CRM is a tool designed to manage customer interactions and relationships.
Often confused, or even misunderstood, these terms both refer to software that improves business productivity. And if you're here, it's probably time to invest! ⏰
Sidely takes you on a tour of two types of software designed to improve your company's operations and performance. Over the course of this article, we'll explore in detail the particularities of each of these solutions.
But let's start by answering this essential question...
An ERP centralizes and automates all a company's operational processes, while a CRM focuses specifically on managing customer relations and interactions. ERP therefore generally has a much broader impact on a company's operations, departments and resources, as the following table shows.
As we'll see below, some ERPs integrate a CRM module, supporting marketing and sales objectives.
That said, we'll be able to explore the uses of these solutions separately.
CRM (Customer Relationship Management) software enables companies to centralize, automate and synchronize all points of contact with customers, whether in sales, marketing or customer service. The main aim of CRM is to improve customer relations, build loyalty and boost sales.
CRMs vary from one publisher to another, but the following features are generally common:
The adoption of CRM is driven by the many benefits companies derive from it, ranging from improved customer satisfaction and increased sales, to the automation of repetitive tasks and the centralization of sales and marketing information.
Acquiring a CRM is the best thing you can do if your company is looking to maximize business relationships, optimize sales and marketing efforts, or improve customer service.
Let's move on to ERP.
ERP (Enterprise Resource Planning) is integrated management software that centralizes and automates all a company's operational processes within a single system. These processes can include finance, human resources, purchasing, production, logistics, sales, customer service and much more.
A CRM can therefore interface with an ERP. In fact, ERPs often offer their own CRM as a module within the overall software suite. More on this later.
Let's take a look at the main aspects to consider when deciding whether you need an ERP system:
Here, too, we find a number of benefits that seem self-evident to all companies seeking to improve their performance:
ERP systems are therefore powerful tools for companies seeking to optimize their operations and boost their competitiveness in the marketplace. Their scope of action goes far beyond that of CRM.
As in the CRM field, it is possible to call on a consulting firm to work on the various challenges surrounding the integration and life of an ERP. Consultants can bring their expertise to bear on the selection and implementation of a new ERP, employee training, integration with other systems, and optimization of business processes in general.
This consultancy can prove indispensable for a company pressed for time and with no ERP-related knowledge. Furthermore, the effects of such a change on organizations and teams should not be underestimated. Support is therefore a major issue for most companies investing in an ERP solution.
Finally, there are also freelance ERP integrators. If you choose this option, we advise you to opt for an ERP with an open API. Note, however, that integrations are subject to updating. It is therefore advisable to have an in-house resource responsible for guaranteeing the smooth running of your software applications over time.
There are some fairly typical situations that lead companies to invest in an ERP or CRM system. We'll take a look at the main ones below.
In short, invest in an ERP to optimize all your company's internal operations, and in a CRM to strengthen customer relations and improve sales and marketing.
You can also draw up a list of the impacts expected from your new management solution, so that you can confidently choose between ERP or CRM.
To facilitate the circulation and centralization of data, some companies choose to invest in an ERP with its own sales module. Indeed, a CRM integrated with an ERP from the same publisher generally offers better data integration.
On the other hand, when CRM and ERP are not natively integrated or do not come from the same vendor, it is sometimes necessary to use APIs to ensure data integration between the two systems. However, it's worth noting that connecting - and even developing - APIs is generally a straightforward matter for seasoned developers(we explain it all here).
Furthermore, opting for separate service providers avoids putting all your eggs in one basket, and limits the systemic repercussions in the event of a problem. Besides IT risks, there are also the effects of dependencies in terms of contracts and resources, or even skills. That's why it's often wiser to dissociate CRM and ERP, even though this means managing more contracts and operators.
💰 Finally, and perhaps most importantly, not all companies are in a position to invest in an ERP, whose cost is often much higher than that of a CRM (around 25 euros, excluding implementation costs) per user and per month.
Still not sure you've made the right choice? Ask us for an online demo to discover the benefits of Sidely CRM!
