We all know what CRM and ERP applications are and what they do. There are plenty of examples out there of vendors who supply ERP systems with CRM as a module.
The differences between a CRM and ERP fundamentally comes down to one managing and developing relationships and the other processing transactions. Having a CRM system developed within an ERP system subjects the CRM to the same logic and design of the ERP system. This may restrict you from reaching your full potential for sales, service & marketing excellence.
CRM systems focus on relationships.
A process driven CRM system can be function as your system of innovation and differentiation. These systems can help set your business apart from your competitors. Therefore, are required to be more agile and flexible in how they support your sales team with how they engage with prospects and customers while at the same time not lose control of the sales process.
For example, each time you speak to your customers and prospects its going to be different. This is because of varying needs and where they are in the buying cycle. This means the way you communicate and what you communicate is going to be different each time. The sale process might start from an email or a web enquiry or even a phone call. This is by nature is an unstructured process. This is where a true CRM can support the sales function by helping sales keep track of all necessary information to move the sale to the next step.
By contrast, ERP’s will take over the process once the customer has agreed to proceed with the sale. The ERP’s will then on-board the customer contact info, agreements, credit application forms and other details such as banking instructions. ERP’s will also keep track of what items were on order and what needs to be delivered to where. Keep track of any trade terms and payments. This is by nature is a very structured process.
During the sales process there is also a qualification process that’s happening all the time. During the sales cycle your sales are attaching many documents such as, proposals, contracts and product information along the way. You also can track your opportunities by email so that the communication trail does not get missed.
All this extra information can cause CRM databases to build quickly in size. When this occurs within CRM all the unwanted and unqualified data will be kept of your ERP database. However, if this is done within your ERP system, this might affect the performance of your ERP database. This can lead to frustrations among finance staff who are trying to run reports or process transactions having to find their forms or reports freezing up due to CRM issues within their ERP systems.
If you are currently in the market for a CRM solution you will never go wrong selecting fit for purpose applications. It’s for this reason why the world’s most successful companies keep CRM separate from there ERP.
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