On the surface, you might think that customer relationship management (CRM) and enterprise resource planning (ERP) are the same exact thing. However, they both have very specific niches for a business--particularly when it comes to managing organizational assets and interactions with consumers. Here are some of the specific situations in which you’ll find these solutions helpful.
Customer Relationship Management (CRM)
A CRM solution is specifically designed to provide a service-oriented organization with a way to communicate with clients--both current and prospective. A CRM solution can be used to automate certain functions, which makes for a much easier sales funnel in several ways. The ways a CRM can improve a business:
- Better customer communications
- Organization for your sales teams
- Revenue creation
- Ability to target potential customers
- Customer loyalty and satisfaction
All in all, a dedicated CRM can help keep your customers devoted to your brand or product, securing your business' future through repeat sales and building leads that work to build revenue. In short, it’s the ideal way to manage operations, onboard new clients, and guide them through your sales process.
Enterprise Resource Planning (ERP)
Rather than work on the consumer end of the business model, the enterprise resource planning solution is designed to help a manufacturer manage internal operations, as well as many other functions that contribute to optimizing efficiency. You can think of the Enterprise Resource Planning solution as the central hub for your business’s assets. Some of the ways that a business benefits from an ERP are:
- Procurement and distribution of assets
- Seamless data sharing between departments
- Streamlining communication between departments
In short, an ERP is meant to keep your business’s internal operations as streamlined as possible through constant connectivity to important assets and resources. It allows for seamless data sharing throughout your organization to ensure efficiency between the separate departments at work within every manufacturer. This effectively makes your business' internal processes much more streamlined.
It’s easy to see why the two could be confused, but a ERP and CRM are two fundamentally different solutions as they are for two totally separate types of businesses. The ERP hopes to increase profits by streamlining the way that you approach your internal operations, while a CRM improves profitability by optimizing the revenue creation strategies your business uses.
How would your business benefit from these software solutions? To find out how, reach out to us at 301-571-5040.