Key Difference On What Is ERP And CRM Software

ERP Software and CRM Software two of the most important software for any shop, store, company, or business. There are many pros and cons of using both this software. If they are used in their most effective way they can get results to a company or business. Before we get into the difference and further details, let us first explore what is ERP Software and CRM Software, and then we will get into discussing the differences of both the type of software.

What is ERP Software?

ERP Software stands for Enterprise Resource Planning. As the name suggests, this kind of software is used to manage resources available to companies or businesses it may be raw material, human resources, and so on. ERP Software helps owners to organize their system or business. This helps then keep an eye on every activity from the rare view.

ERP Software manages business process information in real-time, manages benefits, payroll, and employee information, update accounts, process orders, creates enterprise-wide strategies, tracks manufacturing and supply chains, gets alerts about issues, manages to hire initiatives, and many such tasks.

Also read, What Is ERP Implementation Life Cycle?

What is CRM Software?

CRM Software stands for Customer Relationship Management. This kind of software is the most important part of any company or business. As everyone knows customer is the king of the market. Hence to remain compatible in the market and maintain your and your company’s unique image it is necessary to keep your customer satisfied with your product or the service that your company serves your customer.

To remain compatible in the market it is necessary to keep on innovating and adding something new every now and then. If you remain successful to add new changes in your product or service this would create a ripple effect in the market and hence would get your more and satisfied customers. In innovating or adding new features to your product or service customer reviews plays a vital role. Customers would tell you the improvement they expect in your services through their reviews. Thus to manage customers’ relationships with the company, companies, or businesses adopt a system that is known as CRM Software.

CRM Software automates and manages marketing campaigns, offers high-quality customer support, identifies new leads, analyze purchasing patterns, automates redundant tasks, streamlines the sales process, and many such tasks.

Also read, How To Manage Daily Business Leads By Lead Management Software.

Basic Similarities

This two software are very different from each other at core values. They both have different purposes to full-fill. On one hand, there is ERP Software that manages internals of any store, company or business and on the other hand, CRP Software manages customers relationship that is the outlook of any shop, any company or any business. The two systems are similar in many ways but have different core functionalities. Both are valuable business solutions that improve both revenue and productivity.

Basic Differences

  • The first thing is both this software differs in terms of management, ERP Software manages the distribution process whereas CRM Software manages the organization’s marketing efforts.
  • ERP Software keeps a track of service knowledge base and on the other hand, DRM Software keeps a  track of how much time is spent and how many of them are converted to sales and leads to close the deal.
  • ERP Software moreover focuses on improving financial data and keeping a check on its accuracy and CRM Software totally focuses on sales and measures and leads and keeps track of it.
  • Employees’ life cycle is automated ERP Software that is keeps track of what and how employees’ are performing, their needs are full-filled, their efficiency and all that, whereas CRP Software customer’s interaction on the site, their searches, sells, lead generated, sharing and dropping out of sight and all such activities.
  • ERP Software is made to facilitate better project plannings and CRP Software is made to automate customer services and increases the quality of the customer’s experience with the business.
  • ERP Software is meant to reduce redundant tasks and activities to use all the resources optimally. And CRP Software is meant to create data reports from customers’ side for the betterment of the business.
  • ERP Software would simplify the need for shop, company, or business whereas CRP Software would simplify the customer behavior for further improvement in the business strategies.
  • CRM Software focuses on lead generation whereas ERP Software focuses on managing business and it’s core values and needs.

Thus both the software have their pros and cons when a business is kept at the point. Business owners have to choose it subjectively.

Which one to choose from ERP Software and CRM Software?

CRM Software is to increase the sales of the product or service using customers’ needs and demands. Thus if a company is starting from scratch they need to remain super couscous about its market image related to their product and services. Hence in such condition focusing and investing more on CRM is advisable.

Whereas when we talk about ERP Software, they are used to get the most optimal results from all the resources available to the company or business. This would help them get more profit out of less investment. When all the available resources are used optimally, rewards achieved by the business are cost-effective.


Thus from the above discussion related to ERP Software and CRM Software, one can male a proper decision according to the needs and demands of their customer and capital available to them for investment. Both the software are very useful for any kind of business to use resources optimally and get the most benefits out of it by satisfying the needs of the customer and their demands.

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