CRM software development or ERP software development? Which one do you need to keep your business pace with the market? Today, both solutions have become important companions for businesses owing to their array of features and functions. Companies are willing to automate their business operations which makes them hunt for enterprise resource planning (ERP) solutions and customer relationship management (CRM) solutions. But when it comes to choosing one, it becomes critical to understand the difference between CRM and ERP.
The global CRM market is forecast to go beyond about US $170 billion by 2030 at a CAGR of 13.3% between 2022 and 2030. On the other hand, the global ERP market is expected to go beyond about US $93.34 billion by 2028 at a 9.2% CAGR. Both types of software solutions act as data repositories and help businesses to encompass various tasks in an automated manner. If you’re unsure whether to go with CRM or ERP software development services, we suggest you read up on each offer and how they align with your business goals.
This article will discuss the key functions of CRM and ERP, what makes them different, and whether you need ERP or CRM.
What is CRM?
CRM (Customer Relationship Management) solution is a well-known system among companies. This system is designed to handle the operations related to customer interaction and satisfaction. The idea behind CRM software development is to make sure that customers are happy.
The system typically involves functions like ad targeting and communications. It is a front-office tool that employees in departments like sales and marketing use to boost revenue by improving customer experience.
The goal is to establish a strong customer base, as, without that, an organization cannot go a long way in the market. CRM solutions work either as standalone or as a part of ERP software. Many companies use standalone CRM solutions for more functionality.
Read More: How to Build a Custom CRM for Enterprises?
Key Functions of CRM Software
Before you start planning how to develop CRM software and look out for the best CRM software development company, it is important to note the essential functions of this type of solution that make it worthwhile. Knowing and understanding the processes of CRM software will help you determine what your business requires in a custom solution.
Let’s take a look at the major functions that you should have in your CRM:
Lead management
The primary step in the sales process is lead generation. cloud CRM software development enables you to capture and fetch details from multiple sources, including phone calls, emails, web forms, and social media platforms. The lead management function ensures you don’t miss out on any leads. It also ensures that you qualify those leads. CRM software also keeps an eye on the progress in the sales cycle and contributes to decision-making in marketing strategies for retaining them.
Contact Management
Contact management captures customers’ details in a database, such as their name, phone number, address, email, and social media contact. It monitors and saves customer communications in the contact database, which helps build an integrated client profile. Contact management also helps sales representatives save the time and effort they spend registering every detail in their heads.
Email Management
Email is the most commonly used mode of communication in B2B. Email management in CRM software can send mass emails, keep track of emails exchanged with clients, plan email campaigns, and shoot automated emails to clients on occasions like birthdays or anniversaries.
Reporting
Reporting and analytics are an eminent function for any business operation, from sales and marketing to field service, eCommerce, and whatnot. This function is essential for tracking various metrics such as profitability, marketing campaign effectiveness, and customer retention. It offers a complete view of how a business is faring on different metrics. This feature also allows you to share reports with other teams, which helps you make collaborative decisions.
Read More: How to Develop Solar CRM Software: Top Features, Development Process, and Cost
Marketing
Marketing in CRM software entails the segmentation of leads and the ability to retain them. It allows you to prep and launch marketing campaigns, track their optimization, and use social media marketing. The marketing function encompasses components such as content marketing, automation, and marketing resource management. Automation, in this case, helps lower the cost and enhance the efficiency of marketing plans.
Forecasting
Forecasting is a fundamental aspect of CRM as it helps gauge your future sales and revenue based on current and previous data trends. It allows you to decide the next call by helping you examine different hypothetical cases. It improves the predictability of the forecasting model. It also guides you through designing data-driven strategies, finalizing optimal inventory levels, and investing in new channels.
Workflow Automation
The workflow automation function of CRM software solutions allows you to come up with smart workflows using logic or rules to automate repetitive tasks such as raising invoices, following up on leads, and sending emails. You get notifications upon completing tasks and reminders to manually input data. Workflow automation solution helps people in the sales department save time and effort and avoid repetitive tasks.
Also Read: Top 10 Tips to Choose the Right CRM Consultant for Your Business
What is ERP?
ERP (Enterprise Resource Planning) is a set of functionalities that cater to multiple organizational processes such as HR, finance, supply chain management, and distribution. Companies use the ERP software development approach that renders customizable solutions and enables them to add functionality to fulfill their unique business needs. The key idea behind the system is to streamline the processes and centralize the data.
Large-scale companies usually prefer enterprise resource planning solutions because of the amount of data and the number of processes they cover. Some small businesses go with these solutions. The software is used for the tools it contains for both front-end and back-end data. Moreover, it also helps enhance communication and the exchange of information.
Read More: How much does it cost to create custom ERP software?
Key Functions of ERP Software
When you are getting started with the ERP software development services, it is imperative to note the expectations you have from the solution. It includes the features and functions of the software. Listed below are the important parts of ERP software.
Human Resource Management
HR business processes have much to do with data entry and reporting tasks. Data entry entails inserting the employee-related details such as contact number, designation, department, payroll, working hours, additional perks, and more. By investing in custom ERP software development, you can get a solution that helps your HR team keep data in a centralized database. It will make the information easily shareable and accessible. Moreover, ERP software, along with LMS software development, ensures that employees can make the most of the learning management system to develop relevant skills.
Supply Chain Management
The manufacturing business must keep in touch with suppliers and partners regularly to get the stock and bring finished goods/products to consumers. Supply chain planning encompasses the procurement of raw materials and the implementation of suitable marketing channels for promoting the products. ERP systems help make sure that the supply chain processes are run efficiently. Using ERP software development services, you can create a solution that enables you to obtain affordable price quotes from the suppliers, minimize waste with the optimization of production activities and maintain inventory while utilizing employees’ efforts in other important tasks.
Tracking
Tracking is the most prominent aspect to gain from ERP software. Many ERP systems work on the technology that helps users keep track of finished products and raw materials right from the manufacturing stage to the point of delivery – thanks to the incredible integration offered by ERP systems. Tracking is no longer a hassle for you, given that all your applications can send and receive information. This kind of access provided by the ERP solution allows users to understand and determine challenges such as delays and stock outages.
Sales and Marketing
The sales and marketing functions of ERP software offer features such as interacting with customers, tracking customer orders from order placement to the dispatch of products, raising sales invoices, payments, and processing order returns. ERP software also has functionalities like automated tracking of expenses against a specific order ID, implementation of targets for marketing, and tracking of lost orders. Such reports allow you to analyze sales trends within a particular period and predict sales for the future.
Data Analysis
ERP systems collect and process data from different business operations, which makes it obvious for them to take the next step based on that information by performing analysis. ERP software analyzes data related to various processes, including production statistics, sales data, client data, and much more. ERP function focuses on identifying trends and patterns in different business processes. Spotting trends and patterns in operations allow you to look back on specific tasks and their effectiveness, which can help you perform forecasts for future business decisions.
Financial Management
Accounting is one of the most crucial functions of ERP software. Any ERP system must have a strong suite of financial management tools that allow users to manage various aspects of this domain. This function helps you manage accounts payable, accounts receivable, tax, fixed-asset, and risk management. Many ERP systems also operate with multiple currencies and tax regulations, which is useful to businesses run internationally. Moreover, a robust ERP system enables you to automate various accounting functions such as payments processing, expense management, sales analysis, and more.
Reporting
Reporting and analysis go hand in hand with ERP software. The reporting capability of ERP plays a significant role in conveying analysis to an end user. The reporting tools in ERP software bring features like customizable dashboards, pie charts, bar graphs, and other sorts of visual representations that communicate the analysis precisely. This function of ERP allows users to gain insights into the performance of various business processes and help them make decisions based on that. Many systems enable users to restrict access to reports, protecting valuable company data.
Difference Between CRM and ERP
So, what is the difference between CRM and ERP? While you may realize that both have their unique suite of services to cater to your business, it is crucial to understand how ERP and CRM software development differ.
The rudimentary difference between CRM and ERP is that CRM software entails the customer data that helps the sales and customer service departments. ERP, on the other hand, is primarily used for financial data and the HR process. CRM is the front office, while ERP is the back office.
It is important to note that ERP systems also come with a CRM function. However, it does not imply that an ERP solution has to have CRM. Also, CRM software solutions do not have ERP functions.
CRM or ERP or Both: What Do You Need?
Today, companies are investing in both ERP software development services and CRM software development services. Whether small and midsize businesses or enterprises, ERP and a CRM system have become a must for many. Whether you’re planning how to develop CRM software or how to develop ERP software, you need to check up on your business model to be able to conclude anything.
If you’re running an enterprise with truckloads of customer data and finances to manage, you might want to look out for the best CRM software development company to help you build a solution. If your company has a small set of customers and intricate financials, contacting the best ERP software development company might be a sound choice. In a nutshell, you might want to use both for your business needs.
Whether you’re looking for CRM or ERP software development services, Matellio can help you devise your idea of efficient management and increased customer satisfaction in the right solution. Our team of engineers works with years of experience in these domains to ideate the plan, create the roadmap and transform it into something that eliminates the hassle of your business operations.
To get started, contact us today.
