Two of the biggest acronyms in the business world are CRM (customer relationship management) and ERP (enterprise resource planning). The two are similar types of technologies designed to improve the efficiency of your operations. But there are some fundamental differences between them.
As mentioned, customer relationship management is a technological tool. The goal is to have one piece of software that centrally manages all of your organization’s interactions with customers and potential customers. CRM helps your business improve its relationship with customers when you first connect and beyond.
With CRM software, you have one central location where you store all customer and potential customer information, uncover opportunities to convert sales, and beyond. Here are some of the benefits that CRM brings to your business:
CRM helps to manage your business operations from one place to improve relationships with customers and help retain them as much as possible.
Enterprise resource planning (ERP) software helps organizations manage daily business activities. These include risk mitigation and compliance tools, budgeting, supply chain management, and beyond. ERP suites share information from multiple data sources to ensure there is a central repository to manage operations.
Here are several benefits of an ERP:
CRM and ERP are designed to make your business stronger, but they go about it in different ways. A CRM system focuses on the customer side, seeking to boost your sales by bolstering customer interactions through its various tools. CRM technology aims to create more loyal customers, reducing churn rates.
On the other hand, an ERP suite increases efficiency by giving executives in your organization a real-time “big picture” of what’s going on within the company. The goal here is to cut costs and better allocate resources.
So what does the future hold for CRM and ERP?
Three things may define CRM of the future:
Moving forward, ERP will also evolve in ways that will make life easier for businesses and customers. Here are three things that may define ERP in the future:
The common element of the future of CRM and ERP is that businesses will have more data available to them and more advanced ways to use the data. The goal is to make increase profits, cut costs, and develop stronger relationships with customers. While CRM and ERP may differ in their approaches, they are both poised to help businesses grow immensely in years to come.
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