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ERP vs CRM: 7 Main Key Differences

By Majedul Haque Shakil Last Updated -- Wednesday, 2024-01-10
ERP vs CRM: 7 Main Key Differences

A continuous fight happens in ERP vs.CRM. Enterprise resource planning and Customer relationship management are both compelling tools. So, Their ultimate goal is the company's efficiency, streamlining business processes, and increasing profitability.

When you come to a discussion table, several questions come like 

  • What's the difference between ERP vs CRM
  • Are CRM and ERP the same?
  • Which system is the best for cost saving?
  • Which one is good for my enterprise?

From Various points of view, ERP and CRM are both similar in many ways. But their core functions differ.

Don't worry. Take a deep breath. We will lead you to solve this problem

To understand the true value and make a decision about which system is perfect for your enterprise, you should consider ERP and CRM as two different systems

Let's investigate, 

          How ERP system is different from CRM, and which one is the best solution for you.

A Short Brief About "Erp."(Enterprise Resource Planning)

The Enterprise resource planning systems manage everything of a company day to day tasks like a pro. It removes the need for paperwork and automates the business process and 

increases the profitability of your business.

It also makes a bridge with key functionalists like human resources, order management, accounting, inventory, supply chain, and many more.

With this, it also focuses on how ERP can reduce overhead and cut costs to increase the business's visibility.

Want to know more about ERP in e-commerce?

"ERP is first an attitude; second, a process, and only third, a set of tools."  

                                                                                                     Alexis Leon.

Using ERP Is A Big Solution For You? 

Suppose you want to implement an ERP system in your enterprise. An ERP obtains live interconnected management of exact business processes, assuring the enterprises are filled with standardized facts and readily accessed throughout every department.

 Some benefits you can get:

  • Improve the efficiency 
  • Data synchronization
  • Web-based platform
  • Manage all the resources more securely 
  • Business growth
  • Reduce Human errors 
  • Reduce the cost 
  • enlargement communication between roles and divisions
  • Time savings 
  • ERP is more oriented toward enterprise 

So, What's The Definition Of "CRM?"

Although the article is all about ERP vs CRM, we have to know about CRM first.

Customer Relationship Management (CRM) is a solution that helps businesses to interact with their current and possible future customers. This tool encapsulates the whole buyer journey, from seizing the lead to the conversion of the lead. CRM is a data-driven tool that analyses customer data to assemble, maintain and boost customer relationships.

Basically, CRM tools collect all the customer contact information, including their telephone number, personal data, social data, transit history, and engagement metrics.

It provides a way to connect businesses to their exact customer. when a customer connects more organized way, then it helps to gain more sales.

      CRM is your GPS to a better route on your Business Development journey."     Bobby Darnell
Benefits Of Using CRM (Customer Relationship Management)

Some important points to note down about CRM 

  • Its main priority is to focus on customer relationship management 
  • Sales activities 
  • Manage to track functions for the organization 
  • More focus on their target
  • Sales and invoice.
  • Monitor sales performance at once 
  • Track the Sales Pipeline 

So everyone can use this solution. Here is the list is given below 

  1. Solo freelance operations
  2. Remote e-commerce 
  3. Mid-size businesses

Top 5 Features of ERP and CRM

Understanding key ERP features clarify why this software plays a key role. Here are five capabilities to consider when evaluating ERP software  

  • Accounting management
  • CRM management 
  • Supply chain management 
  • Order management 
  • Inventory management

       And Many more, 

On the other hand, CRM software gives us some features as well. which is 

  • Contact management system 
  • Notifications features 
  • Workflow automation system 
  • Customer relevant service 
  • Make your own customizations 
  • etc

7 Main Major Differences Between ERP vs CRM
Differences Between ERP vs CRM

01. Software Functionalist 

The major difference is the software functionalist. Focuses are a part of software functionalism. Because CRM focuses on customers and sales, and on the other hand, ERP covers the whole business.

Another key difference is CRM software stands for customer data, and ERP software stands for financial data process.

ERP software mainly helps you with the internal process management CRM software gives you the Exterior support of the system.

  • CRM software:-customer satisfaction+customer management+ customer interactions = improved marketing presence
  • ERP software:-Entire back office functionalist +automate and manage nearly all central exercises =To enhance efficiency and workflows of the enterprise 

02. Increase The Profit Chain 

increasing the profit chain with erp software

ERP vs CRM which solution makes more profit? That is the basic question that everyone asks. 

Operational and overhead this is the two terms where ERP systems reduce the cost and produce a huge profit.CRM systems conduct greater profits by growing customer pools and, accordingly, sales and service volumes.CRM also works for higher sales volume 

With the best ERP system, you can standardize your process throughout the business. ERP system brings all of your system chains into one single place. Remove all human errors and gain some speed in your day-to-day work.

On your behalf, using CRM software, You'll grow profits by enhancing customer service, gaining more economic insight into sales, optimizing production, and lowering internal manual procedures.

Although ERP and CRM both get some profit, their ways are different.

03. Boost Up Your Performance 

Boost Up Performance with erp software

Ways of performance depend on your system. Individually system delivers you different performances according to its customization.

An ERP's success metrics grow across various enterprise departments, from order procurement to vendor management. However, a CRM's success metrics are more precise to calculate as they rotate around the investment and retention of clients. Therefore, you can use metrics from a CRM to set transparent and measurable dreams.

If you want to boost your ERP performance, you can follow up on these four ways 

  • Customization ERP tool for your requirements
  • Process your documentation more organized way 
  • Erase all of your unnecessary data 
  • Give the leadership the right person to use ERP software more playful way. 

Quite the reverse CRM software also boosts up company performance through their client's satisfaction.

Here are the four ways to raise CRM software performance 

  • Know the customer segmentation
  • Customer satisfaction is the key to your performance 
  • Develop KPIs
  • Enhance customer retention 

04. Increasing Sales Or Reducing Cost? Which One Is Your Main Priority

Increasing Sales with Reducing Cost

ERP vs CRM !!! ERP software gonna win the final race? Does CRM solution win the Trophy?

To know the update on this, please stay calm and let's read the rest of the Articles .2 Main factors you have to remember. One of these is sales, and another is reducing cost.

If an enterprise's main goal is to reduce costs, then think less and implement ERP software. Reduce overall operational costs by 23% and organizational costs by 22%. That's significant salvation over time. And while operational savings may be an ambitious factor in exploring ERP adoption, quality ERP programs can do better than save money.

95% of businesses achieve major improvements after using ERP 

The company's priority is sales. The second focus is sales, and the final priority is sales. So CRM software is the right answer for you. But remember that periodically sales do not give a better outcome.

A survey shows that 82% of companies use CRM for reporting sales.

So the decision is yours.

05. Relationship Between Customer And Organisation

The primary difference between" ERP vs CRM" is that one is an organized process controlled by an organization, enterprise, or company. Another is more connected to the customer management system.

So, today customers want fast, responsive, and 24/7 support.CRM software gives the best support out of the box. Implement a new CRM software and make sure a customer's day-to-night support. CRM software can help you to get high-quality support.

Moreover, offer the best support throughout this CRM software. So we can say that CRM software mainly focuses on customers.

ERP software is more focused on the overall performance of the organization. It gives an overall performance about everything. It is like a businessman can get  360 views of everything.

If you want to start a global and local business altogether, ERP software assists you in centralizing all the data to one single system and making it more organized than ever before.

06. User Deviation in ERP vs CRM

Who are the users of ERP software and CRM software let's check them out 

ERP primary user 

CRM primary user 


Support team 


Sales team 



Retails and eCommerce




Agriculture and farm sector


Food industries


Business intelligence



These analyzes display how enormous is still the blossoming potential of the ERP systems market, among others 

07. What About The Cost Of ERP and CRM Software?

Enterprise resource planning offers more customization and many premium features and a range of services in all sectors of the system.CRM software also offers many features but is not at large as ERP software.

So in that case ERP software installation cost much higher than the CRM software implementation process.

Infrastructure needs to host and ensure so many services on the cloud that will cost a lot of money too.

On the contrary Labour, software, and hardware can cost up to millions of dollars.

So if you want to control all your business, and enterprise in one centralized way, ERP is the right choice.ERP software handles all that one single way smooth like butter.

On the other hand, CRM software prices can range from free to thousands of dollars annually, depending on many factors which are:-

  • including user total
  • feature kinds 
  • flexibility in customization 
  • whether the software is on-premises or cloud-based.

 So note that:-Starting a business you have to deal with the price range 

ERP vs CRM. Which One Is Good for You?

erp vs crm which one is good

In some cases, CRM is a part of ERP software. which means you can purchase one software with some limited facilities or buy a full package with premium features.

Before you choose the right system for your business you have to remember these 4 factors 

  • What is the Requirement?
  • After implementation does this tool archive your company goals 
  • Support and training option 
  • Security.

ERP software comes with in-built CRM software but with premium features. So most businesses invest in an ERP package first. Afterward, if they feel the need to communicate with customers regularly and more effectively, then they invest in CRM software.

basically, it is good to have both of the systems in your pocket. 

However, it is not necessary at all.

If you have small and medium size businesses you are welcome to buy CRM software. But you have to remember that CRM software has some security and privacy issues in their cloud system.

so that's a limitation.

Therefore you can try our sales ERP with the built-in CRM 

Sales ERP Software as the Best ERP Software with POS apps. Sales ERP is an intelligent ERP solution to operate your business. Sales ERP software helps you manage your business and keeps track of your inventory and human resources. It has a complete account management system also. To limit your small & big business, outlet, or company Sales, ERP is the right choice.

Features we have:-                                              

  • Inventory monitoring                                         
  • Remote access
  • Online and offline system
  • Android pos app integration 
  • Data backup 
  • Dashboard 
  • More Secure server. 

We have built-in 

CRM software, dynamic dashboard, product management, CRM system, account management, stock management, hr manager, and many more modules.

ERP and CRM solutions aim to boost a company's profits, albeit in various forms. Once you're ready to choose your system, your decision should be based on your business's current needs and where you intend to go.

A Finishing Touch

Confidently now, you can choose between ERP and CRM based on a detailed topic breakdown.CRM and ERP are both e-commerce systems.

Some industries prefer one system more than two systems used at a time. In that case, first of all, you have to clarify the requirements first.

ERP software brings together multiple organizational and operational units so that they can smoothly transfer information and convey it to one another in real-time through a single computerized system.

On the other hand, if your main goal is a customer relationship and developing the clients' trust, you can choose CRM software.

Both CRM and ERP software work for max profitability and efficiency.

ERP vs CRM so, Choose the best software and give a rocket ride to your company.


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