ERP vs CRM: Which Product to Go for?

ERP vs CRM: Which Product to Go for?

Businesses earlier, when there was no digitization, run their operations, whether related to core operations or administrative tasks rely on loads of filing systems and spreadsheets, which were of course very tough to maintain and even prone to human errors. This led to sometimes loss in business.  

Managing the customers or potential clients before business digitization was also a very heavy task. In this process, it sometimes would happen that confidential clients’ data got lost or incorrectly fed in the sheets, which again was a human error that eventually led to poor business operations. 

Since the business operation digitization, it has become a lot easier to simplify the business process, giving a sense of satisfaction to service companies as well as their clients.  

Enterprise resource planning (ERP) and Customer relationship management (CRM) are the special digitalized software providing the ease of managing the back-office and customer-related operations with just a few clicks anywhere around the globe. 

Now the question arises whether you should pick ERP or CRM? The answer solely depends on what kind of business operation you run. Moreover, ERP and CRM both play a key role in increasing corporate’s productivity and revenue. 

A competent custom software product development company looks out for all the possible outcomes and strives hard to bring you the uniquely crafted solution so that you can gracefully run the business operation and target the particular audience with a greater success rate. 

Also, a proficient company takes care of the software product development lifecycle which requires the utmost accuracy and pre-planned blueprint to progress step by step. 

In this article, you will learn more about Enterprise resource planning (ERP) and Customer relationship management (CRM) software in detail and explore your options.  

Enterprise Resource Planning (ERP) Defined 


ERP is a business management software that integrates various business operations to check how different activities communicate like: 

  • Production of items 
  • Human resource 
  • Manufacturing  
  • Order fulfillment and sales 
  • Allotment 
  • Budget, financing, payroll, accounting 
  • Supply chain supervision 
  • Management of inventory 
  • Data reports and analysis, etc. 

To put it another way, ERP systems streamline and then enhance the operations you already do to run your organization. In many circumstances, the ERP may automate processes that would otherwise be considered superfluous. Enterprise resource planning (ERP) software is primarily used internally and does not interface with customers or clients.  

Now, let’s go through the benefits of enterprise resource planning (ERP) for the important parts of businesses. 

Benefits of Enterprise Resource Planning (ERP) 

Distant Information Access 

Nowadays, storing and sharing business information instantly over the cloud has become a lot easier with technological progress. In addition to that, employees and stakeholders now look for confidential information safely without rummaging through the long Storeys of files and papers, which of course gave the headache of searching the relevant content for hours. 

With an internet-enabled system, anyone can access real-time data from across the globe. 

Synchronization of Data 

Unified data produced by enterprise resource planning (ERP) systems are used by teammates and different divisions. Any ongoing communication session key can also be changed if an ERP system is programmed to do such a task. Hence, you won’t have to waste time manually imitating, pasting, or reentering data from file to file or program to program because the ERP system’s own rules and requirements will handle it for you. 

Current, Instant Data 

As the stock is pulled, emails are delivered, and payments are processed, a custom enterprise resource planning (ERP) software solution is constantly getting information and updating its central database. This provides access to the most up-to-date company data to decision-makers. 

Minimized Silos, Improved Collaboration 

Having own data storage and systems builds the silos, which restricts the individual divisions to work together and sync on the same level. With a common database in a customized ERP software, managers, employees, and administrative-level officers now can access passkeys, credentials, etc., which previously required the permission of a lot of different platforms to get this information. 

Reduced Time and Cost 

With automated and customized enterprise resource planning (ERP) solutions, now automatically fetch processes, warehouse orders, transactions, notifications, etc., and modify plus tailor these operations on the go.  

A competent service provider offers you a customized solution to reduce your worries about the back-office management tasks so that you can spend more time building strategies towards striving for your major goals. 

Customer Relationship Management (CRM) Defined 

What to know about CRM

CRM is software that handles and helps you manage important relationships with customers and potential prospects. Basically, this software consists of names, emails, and other basic information of your customers.  

CRM software is extremely beneficial to sales and marketing departments because it allows them to develop stronger relationships with customers, which leads to increased customer loyalty and income. 

Benefits of Customer Relationship Management (CRM) Software 

  • Availability of precise reports to help make correct decisions and exploring more business opportunities. 
  • All-round view of current and potential customers’ information 
  • Automation of marketing activities, giving extra time to close the leads. 
  • Customer Engagement with a Personal Touch to pull the targeted group of customers and increasing the chances of converting them to customers. 
  • Evaluation of the advertising networks’ efficiency by calculating the conversion for each phase of the sales funnel. 
  • Examination of advertising metrics by utilizing the coherent and generic platform 

If your requirement is solely customer-centric, then of course you should go for customer relationship management (CRM) software, which a genuine and authentic customer service provider tailors for you according to your various catered needs. 

If you are still a bit confused about which one to go for, consider the below differences. 

Key Differences between ERP and CRM 

  • ERP is a worldwide system that connects all of a company’s existing procedures. Small companies don’t require such a sophisticated system and can get by with just a CRM. So, a company’s size matters when considering purchasing ERP software. 
  • For large-scale production and manufacturing of materials, sales, and various report generation, enterprise resource planning (ERP) is the one a company must-have. It’s also a smart option when a company’s project changes from one division to another over time. But for businesses operating only on a buy-sale basis, CRM is something they should consider having. 
  • Finally, budget comes into play when taking into consideration the choice between ERP and CRM. Companies having ERP spend a lot on employee training, system implementation, and so on. To start with, CRM is the best choice. This platform is more accessible, can be modified individually, and is simple to understand for staff. 

ERP or CRM: Which One is Your Sport? 

It is quite challenging to choose between Enterprise Resource Planning (ERP) and customer relationship management (CRM) software because both have different and unique uses and benefits. Where an ERP focuses on back-office activities, CRM takes care of all the front-end tasks related to company and customer tie-ups.  

ERP is required for complex large business operations where on a day-to-day basis coherent and complicated functionalities communicate and in this process lot of time is saved. 

By consulting a custom software product development company, you can either choose ERP or get an option of integrating CRM as a module in the ERP system.  

Apptread, a leading and recognized custom software product development company, is here to help you out with choosing the right solution for you. Get a free consultation session and discuss your needs with our expert strategists for further possibilities and scope. Act today and play safe with more successful goals!