The industries operate to streamline every business process and as part of it, lead generation through sales and marketing is the focused aspect. Enterprises concentrate widely on developing their business in addition to optimizing the various processes. The goal of any business is to reach wider, grow higher, and become a world-class solution provider. To achieve these goals, one needs a systematic approach in aligning the business processes and a few automation scenarios. A CRM software and ERP system both can help the enterprises to realize these goals but here’s the tactic: Large-scale or medium enterprises widely choose ERP systems over CRM but as to increase sales, the future is unfolded towards CRM Software. A lot of dilemmas occur when you’re unable to choose one among the two. However, each one extends its functionalities to support your business but based on the environment and solution that you provide, the choice varies. As per the latest reports, most businesses are likely to choose both.

As both contribute to the value addition in terms of revenue and planning, there’s always a scope for differences. But before touching the roof let’s understand the foundations of CRM and ERP.

What is CRM Software?

Most companies couldn’t handle their customers before the rise of CRM. Customer Relationship Management (CRM) software is the way a business handles customers. Lead generation, lead processing, sales automation, customer management, deal management, contact management, and project monitoring are the various features that CRM provides for every type of business. CRM is an effort to boost client interaction and engage them to close deals effectively. The long-lasting relationship with CRM software is integrated into the business platform to grab the attention of potential customers and increase the customer base from the existing.

What is an ERP System?

As CRM is for the customer, ERP is for business. Enterprise Resource Planning (ERP) system improves the overall efficiency of the business processes. The information is standardized for all the departments in real-time and enterprise-wide.

In an ongoing business platform, an ERP system solves the equation of complete internal processes. If any area gets affected or subjected to any type of complications, it’s known to higher-level authorities and the focus shifts to set it straight. Planning, allocation, identification, and resolving are the primary aspects of owning an ERP system. It’s simply interconnected management processes to strengthen the core of the business.

Both CRM and ERP are implemented at workspaces with a motive to increase efficiencies. Still, the silver line is for CRM as it generates a high volume of sales regardless of business size. On the other edge, an ERP system gives an overview of every department.

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Here are the various functions of CRM and ERP systems in separation. Identify your needs and choose the one that rightly lands on your business spot.

Functions of CRM Software

As an indispensable part of business, CRM makes a business stand on the competitive edge with effective lead management. The three key functions of CRM software are: Sales automation

The success of any business relies on sales and the best way to gain a competitive advantage is to leverage your sales with proven marketing strategies. A CRM environment helps the salespeople to automate the processes such as contact management, activity management, notification opportunity management, etc.

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CRM helps the salespeople to:

  • Effectively manage sales: The key role of sales must be understood before approaching the market and sales tracking software has to be created to develop further sales strategies for an organization’s success. Sales CRM is what many name it as sales individuals identify the opportunities to grow business.

  • Accurate reports and forecasting: Another impressive aspect of this system is forecasting. Forecasting fuels individuals to make informed decisions that would be helpful to create a great business fortune.

  • Contact Management: The use of sales automation leads the team to manage contacts, pipelines, accounts, and other activities. A stabilized way of relationship is maintained with the CRM system and this, in turn, improves customer retention rates.

  • Opportunity Management: Most companies are in a deal to close more projects in a year and this happens when you apply win-win strategies. On one side, it’s CRM and the other side is the client’s interest towards you. CRM is the best sales management software with a goal to close sales.

  • Task Management: Set all your tasks in one place. The team productivity is at pace with the activities and you can set reminders while assigning any task to the teams. A wider scope to complete projects on time.

Marketing Automation

Investments consistently increase year by year for the organizations as part of automating the marketing activities. Intending to supercharge operational efficiency and grow revenue, CRM offers automation in marketing.

Automating customer engagement activities: Make your marketing a step higher and mark higher-end approaches to nurture leads through online campaigns. Again the goal of a campaign is to enhance customer engagement by reaching the touchpoint of the customers. Maintain meaningful customer relationships through CRM marketing automation functionality.

Sales Funnel Automation: Robust business strategies, efficient marketing processes, and dynamic automation tools are accelerating lead scoring, lead acquisition, lead assignment, and lead nurturing.

Campaign Automation: The basic need of any business is to run successful strategies. However, campaign optimization is crucial for most businesses as the output triggers the scope of any business. CRM offers such campaign automation thus increasing the lead generation process.

Customer Service Automation

Another chore that is hectic for businesses is customer service. Though it’s challenging, quality and long-lasting service are the ultimate fuels to grow your business.

CRM software creates such uniqueness in the customer service segment where it:

1. Provides personalized customer experience

2. Creates and enhances existing or new relationships with the customers

3. Resolves customer queries, reports escalations, and makes it possible to share customer information with the entire organization

Functions of an ERP System:

In the sales and marketing pitch, automation is seamless with the help of CRM software and when it comes to an ERP solution, it has multiple functions as listed below:

1. Process management distribution

2. Managing the cycle of supply chain

3. Providing knowledge-based service

4. Improves accuracy of the financial data

5. Focuses on improving project planning

6. Automates life-cycle of the employees

7. Creates the standards for critical business procedures

8. Reduces the time spent on repetitive tasks

9. Assesses needs of your business

10. Lowers purchasing costs

11. Manages HR activities


A business organization can have both but depending on the type of business, goals, vision, and fortune, the choice varies. If you would like to grow, the first choice is a CRM system and if your goal is towards organizing and planning, go for an ERP system. Note down the preferences and choose a right CRM solution that’s matching your business needs.

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