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  • January 16, 2023
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ERP vs CRM : Comparison & Benefits

Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are two important business management systems that help organizations streamline their operations and improve customer satisfaction. Although they are both (ERP & CRM) software systems, they have different functions and serve different purposes.

In this article, we will take a closer look at ERP and CRM, comparing and contrasting their features, benefits, and use cases.

What is ERP?

It is a software system that integrates all the different functions of a business into a single system. This includes functions such as accounting, inventory management, human resources, customer service, and more. By integrating all these functions into a single system, ERP allows businesses to have a better overview of their operations and make more informed decisions.

What is CRM?

on the other hand, is a software system that is specifically designed to manage customer relationships. This includes functions such as lead management, contact management, sales management, and customer service. The goal of CRM is to improve customer satisfaction by making it easier for businesses to manage their customer interactions and understand their needs.

While both ERP and Customer Relationship Management have their specific functions, they can also complement each other and work together to improve the overall performance of a business. For example, an ERP system can be integrated with a CRM system to allow for better inventory management, as well as more accurate forecasting of customer demand.

Benefits of ERP & CRM

It’s important to note that while both systems can streamline business processes and improve efficiency, they are not interchangeable and are best used for their intended purposes.

Benefits of ERP & CRM

Differences Between ERP And CRM

After learning both the terms and their benefits, let’s take a quick view at their differentiating factors:




Data Management ERP systems provide a comprehensive view of a company’s internal operations and resources, financial data, inventory, and production schedules. They allow for data integration across different departments and locations, providing a centralized data repository. CRM systems provide a comprehensive view of customer interactions and relationships, including customer data, sales history, and communication records. They allow for tracking and analysis of customer interactions, providing valuable insights for sales and marketing strategies.
Functionality ERP systems typically include modules for financial management, inventory management, human resources, and production planning. They are designed to automate and streamline internal processes and operations, improving efficiency and data accuracy. CRM systems typically include modules for sales management, marketing automation, and customer service. They are designed to manage customer interactions and relationships, providing tools for lead management, customer segmentation, and campaign management.

Use Cases

When it comes to use cases, ERP is more suitable for larger organizations that have multiple departments and need to manage a variety of business functions. It is also useful for businesses that have a lot of data and need to make sense of it.

CRM, on the other hand, is more suitable for businesses that have a lot of customer interactions and need to manage these interactions more efficiently.


We hope you must have understood how both systems can work together to provide a complete and efficient management solution for a business. But if you are an organization, you will need to assess your specific needs (including the size and nature of the organization, its data, and its customers) before choosing the best and the right system. We CRM-Masters are providing world-class CRM Services, we are a Zoho Premium Partner & Certified Salesforce Partner.