You’ve probably heard of ERP and CRM systems a lot. Both platforms use Business Intelligence and aim to improve the performance and productivity of any business. However, they are used to cover different aspects. With this article, you will know what an ERP is, what a CRM is and the differences between the two.
What is an ERP system?
ERP stands for “Enterprise Resource Planning” which, translated into Spanish, means “enterprise resource planning system”. An ERP is a tool responsible for the internal operations of a company. In general, this helps to improve communication between employees, facilitates decision making and optimizes processes. With this system, you will be able to get to know your own business better and improve its necessary aspects, if necessary.
- Optimize management processes.
- Integrity in the information system.
- This facilitates internal and external communication.
- This allows you to track costs.
And a CRM?
The acronym CRM stands for “Customer Relationship Management”. A CRM is an application that brings together all the interactions between a company and its customers in a single database. It is useful to know the needs of these, gathering a large amount of information from each client.
This tool allows, in a more direct and simple way, to attract customers and to manage commercial actions.
- Increase customer loyalty
- We save a lot of time.
- Company profits grow
- This allows you to increase the response capacity
Differences between an ERP and a CRM
- The purpose of each of these systems is totally different; ERP is designed for business procedures, while CRM for sales and customer management of each business.
- Upon installation, the CRM is much simpler and more agile. On the other hand, the integrated management software package is more complex.
- ERP has higher costs, while CRM is much cheaper but covers fewer areas within the company.
- Depending on the volume of the business, we will use ERP for mid-size businesses or large companies. CRM will be used more in small businesses.
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