ERP and CRM. These are two of the management tools most important in a company. In fact, its acronym is linked to the technological ecosystem ecosystem of any organization that has embarked on the digitization process. No matter their size or sector, both solutions are now inherent to business activity. But what are they? What are their differences? Let’s take a look at what is an ERP and a CRM.
What is a CRM and an ERP?
Let’s start by clarifying both concepts, ERP and CRM:
- ERP. An ERP (Enterprise Resource Planning or Enterprise Resource Planning) is an integrated software system How? By centralizing information from various departments such as finance, human resources, production, sales, etc. and automating the main operational and administrative processes. The result is an improvement in efficiency, a decrease in the margin of error (also known as “margin of error”), and a reduction in the number of errors (also known as “error rate”). with respect to regulatory compliance) and support in making strategic decisions based on reliable, measurable and comparable data in real time.
The use of a suitable ERP can contribute to considerable cost reductions. On the one hand, because it improves resource allocation. On the other hand, because it shortens time and automates tasks. It is no coincidence that HR departments have seen ERP as a ally in talent managementby facilitating tasks such as payroll administration, long-term resource planning and workforce performance analysis.
- CRM. A CRM (Customer Relationship Management or Customer Relationship Management) is software that allows companies to manage, analyze and optimize interactions with their customers. And not only with current customers, but also with potential ones. Thanks to CRM, the organization can improve customer satisfaction and, with it, customer loyalty and attract new ones. In short, increase sales by optimizing marketing, advertising, communication and customer service processes.
A CRM can improve both the customer experience through a more personalized and efficient service that is vital in strategies that aim to improve communication or build stronger and longer lasting relationships. .
In recent years, CRM has found application in the field of talent management. Through the solutions of Recruitment CRM o Talent Relationship ManagementHR departments can improve their relationship with candidates. In fact, they achieve greater efficiency in the selection process and underpin the so-called “recruitment process”. candidate journey from its first phase. And with the latter, the motivation and engagement of employees.
Other differences between ERP and CRM
Having said that, we could establish the first difference between an ERP and a CRM. difference between an ERP and a CRM. While the ERP facilitates internal management, the CRM facilitates external management, that which concerns customers.
Other differences between ERP and CRM are:
- The departments and professionals that use these solutions. ERP is a solution that focuses on the management of the company’s internal resources, optimizing operational and administrative processes to improve efficiency and reduce costs. Thus, HR departments are the primary beneficiaries of these systems. CRM, on the other hand, is designed to support customer relationship management through marketing, advertising, communication, sales, after-sales service and customer service departments.
- From the general to the specific. An ERP integrates all internal company processes into a single system. In this way, it unifies processes and provides an overview of all areas. CRM, on the other hand, manages the customer lifecycle, from lead acquisition to conversion and long-term retention, with this single, more targeted approach. Thus, they also differ with respect to the data they take into account. The first, internal; the second, external, on customers and their consumption habits or interaction with the company.
- Objectives. While ERP leads to a significant reduction in operating costs through optimization, CRM aims to increase profits by increasing customer loyalty.
Thus, both tools are complementary, both tools are complementary and very necessary to guarantee the viability of any economic activity today.
