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Difference between ERP and CRM

Difference between ERP and CRM:-

In modern business, Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are similar in terms of performance; the profitability of a business is taken care by these systems.

These systems overlap in some areas and can be completely integrated with others. However, as their fundamental functionalities are completely different, it would be best for a business to first consider them as separate stand-alone systems. ERP and CRM each play distinctive rolesto improve and increasethe sales efficiently.

CRM is a system for recording and storing all information related to customer interactions.ERP lays prominence on reducing overheads and capital costseffectively on the business process. ERP focuses primarily on the business.

In effect, ERP and CRM systems appear similar but their approach is different that enables to increase profits. CRM mainly focuses to increase profits by producing greater sales volume. With a consistentsource of customer data, executives and sales personnel find it easy to improve customer relations which gradually help to turn into brand loyalty and add to profitability.

It is difficult to decide which system is more important than the other as both find equal utility in a business.At the core, CRM drives a business. It improves sales and increases profits. ERP lets a business to be navigated carefully well in advancewithout any hassles. ERP and CRM working in sync make it much easier for a business to increase profits even while reducing overheads

A business has to have processes in place before it gets concerned about streamlining.  Moreover, it must start making profits and not concerned about cost cutting. Even the most well-run andwell-organized business may still crave for sales, sometime or the other. This is the very reason why CRM is considered the best bet for a business’s initial investment. Generating sales and successfully closing it is usually what makes everything else possible. By helping to maximize sales figures, CRM can enable a business to grow to the point that ERP becomes a necessity.

Increased capital is generated in two ways: more sales or lesser overhead expenses. By using ERP and CRM systems a business is pursued on both of these avenues. In conclusion, the CRM system generates more revenue through better sales figures and the ERP system reduces overall operating expenses in business. Together, these systems work wonders facilitating a business to simultaneously follow growth through efficiency and expansion. ERP and CRM are used separately but can still be very helpful. The catch however isit could potentially limit the business to a narrower avenue of growth. 

 

 

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