CRM, Customer Relationship Management Blog TeamFebruary 18, 2022

CRM vs ERP -The Difference

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CRM vs ERP -The Difference

Do you want to learn more about the difference between CRM vs ERP? If so, this section is perfect for you to learn. Let’s take a look.

CRM vs ERP – What Is Their Difference?

You see, CRM is an acronym for Customer Relationship Management and ERP is Enterprise Resource Planning. You will not hear these terms often, so you may wonder what they mean.

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In short, CRM manages a company’s customer relationship while ERP manages the company’s resources. With that said, let’s take a look at some of the key differences between CRM and ERP. Just make sure that you keep in mind that there are lots of differences between these two business models; however, we will be going over some of the most important ones to provide you with a quick overview to help you understand them better.

Here are the differences between CRM vs ERP:

The Size

To begin with, both CRM and ERP are large business models as they are used across a broad range of companies worldwide.

The Scope of the Business

Second, both CRM and ERP are used to handle technology within the company. To put it simply, the scope of both CRM and ERP is to control the different technologies that a company uses for its overall operations.

The Focus on Customers

Third, CRM is focused on customers while ERP is focused on the company’s resources. With that said, this means that CRM revolves around how a company works with its customers and how it can better them for future success while ERP is focused on how the company’s resources work together to maintain its overall operations.

Overall, CRM vs ERP is both important business models that are used across a broad range of companies worldwide.

How To Choose The Right One?

Now, you have learned the differences between CRM and ERP and how they are both used to manage different aspects of a company. With that said, you should now be able to choose the right one for your business. Here’s what you should consider.

1. What Is Your Business Model?

If you want to find out which business model is right for your company, then you need to understand what your company does and how it operates daily. If you want to understand this better, then you need to figure out what are your strengths and weaknesses as well as what services or products do you offer that make people come back for more? Once you know this, then it will be easier for you to find a business model that fits with your company’s overall operations and helps it achieve its ultimate goals.

2. Who Are Your Competitors?

When choosing between CRM or ERP, you first need to find out who your competitors are and what they use as their business model. This way, you will be in a better position to see if they use either CRM or ERP as their business model and why they use it instead of another one. This way, you will also be able to see if these two models can help boost your company’s overall performance in the long run or not.

3. How Will You Handle Customer Relationships?

You need to make sure that your customers are happy with the services or products that you offer them because if they aren’t, then it is unlikely that they will come back again for more. With this said, if you want your customers to remain happy, then it is best if you find a good CRM system that can help manage their relationships with the company so that the two parties can work together for the betterment of each other in the long run.

4. How Will You Control Your Company’s Resources?

When choosing between CRM vs ERP, it is also important that you find a way to manage your company’s resources so that all the necessary processes are carried out and the company can be successful in the long run. For example, you need to figure out if you need a system that will help control your company’s finances because if you don’t, then you may end up losing a lot of money in the long run. With this said, it is best if you choose a system that works best with your company’s overall operations and helps it achieve its overall goals in the long run.