ERP Vs. CRM – A Detailed Comparison

When it comes to automating business processes and resource functions, businesses have keen interests in two software solutions. ERP vs. CRM is always the focus of business leaders who want to build an effective resource foundation while effectively managing customer relationships. ERP or enterprise resource planning software and CRM characteristics solutions have been helping companies by providing online repositories for managing crucial business functions. While ERP provides a central database or portal to businesses for connecting financial and operational platforms, CRM manages customer interaction with the business.  

Both platforms act as data repositories for the business and coordinate different workflows and operations between departments. ERP vs. CRM is built on the same infrastructure or foundation, but they are mostly used individually, bought separately, and integrated when needed. There has always been a debate between the usefulness, utility, characteristics, and difference between the two to identify which one takes precedence over the other. The aim of this article is to help distinguish between the two platforms and compare their features to see how each one of these fulfills the business needs.  

What is an ERP system?  

Enterprise resource planning software is responsible for managing your entire company, as suggested and evident by the name itself. It often includes customers as well. The purpose of an enterprise resource planning platform is to improve business efficiency by automating processes, bringing the necessary effectiveness and efficiency to conventional processes, and getting rid of manual labor such as paper handling. It mostly involves process automation to transform core business processes.  

What is a CRM system? 

As opposed to ERP Vs. CRM deals mostly with customer interaction. This software concentrates on systems, subsystems, and processes that involve customer interaction. It effectively manages the customer relationship department to enhance the functionality of client relationships and processes. CRM software comprises necessary features, tools, and assets that help to manage, organize, automate, and synchronize marketing, sales, customer relationship, and customer service functions.  


In this section, we will try to establish a comparison between the two software by stating their individual features. However, the primary difference between the two is that they use different approaches to increase profits for the company. ERP solution aims to decrease overheads and expenses by automating manual processes. Automation tends to reduce the effort, time, capital, and stamina spent on conventional manual processes and brings more efficiency.  

On the contrary, customer relationship management software aims to increase profits, ROI, and sales volume. CRM portal consists of an online data repository that carries necessary information regarding customers. Customer information is valuable to a company’s employees, stakeholders, and leaders since it strengthens customer loyalty and profits. This information is available for improving customer relationships and understanding the customer better.   

ERP Features 

  • Distribution process management 
  • Supply chain management 
  • Services knowledge base 
  • Improves the accuracy and precision of financial data 
  • Facilitates project planning 
  • Automation of employee life-cycle 
  • Standardization of critical business processes 
  • Reduces redundant and manual tasks 
  • Assess and evaluates business needs 
  • Accounting and financial applications 
  • Decreases purchasing costs 
  • Manages human resources 
  • Payroll management  

CRM Features 

  • Organizes and manages marketing efforts 
  • Manages sales pipelines 
  • keeps track of time spent on lead conversion  
  • Streamlines the sales processes 
  • Automation of customer service and support system  
  • Tracks a customer’s interactions with the business 
  • Shares marketing, sales, and revenues collateral 
  • Generates data reports 
  • Manages sensitive customer data 
  • Provides actionable insights regarding product sales and time of sales 
  • Prioritizes leads 
  • Manage inventory based on previous sales data  
  • Encourages collaboration to sell as a team 
  • Manages business contacts 
  • Manages potential business leads 
  • Share customer profiles and data with relevant co-workers and stakeholders 
  • Provides an online data repository  

Concluding words 

In the end, the most important question always remains, whether a company needs ERP or CRM, or both. One thing is for sure, every company, whether it is small, medium, or big, requires both platforms. The reason is evident. Both have different guiding principles for increasing profits which is the ultimate goal of every organization. Companies that have an incessant need for running the financials on accounting tools definitely want ERP Vs. CRM because their traditional tools and methods hold back growth and productivity. ERP provides a robust platform for financial tasks. The same holds true for CRM software, where the company requires assistance to manage customer relationships to amp up sales in the most effective and efficient manner. Ultimately both software is essential for the companies 

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