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Why an ERP software is better than an only CRM software?

Year 2023
May 2023
Why an ERP software is better than an only CRM software?
11 May 2023

ERP BETTER THAN CRM banner 1 - Why an ERP software is better than an only CRM software?

Some businesses that we have consulted would start the conversation with a question if we have a CRM software. Before answering the question, we usually ask them back: “What is your definition of a CRM?” And that’s where we hear differences in their responses. Some define CRM as a system that handle quotations, while some others define as a customer tracking software and so on. 

ERP BETTER THAN CRM ANH TRONG BAI BAO - Why an ERP software is better than an only CRM software?

So, what is Customer Relationship Management system?

Customer Relationship Management (CRM) is a technology that help integrates all of information of your customers and potential customers. This tool helps salesperson manage the contacts, sales productivity, customer journeys and contract procedures. To be exact, with a CRM solution, the Sales and Marketing team can track and follow the prospects’ journey of interaction with the business, hence helping them reach out closely to the customers and refine their buying experience. 

Read more: Manage Customer Relationships in Field Service Industry

However, CRM should not stand alone without the support of ERP system. Here are reasons why. 

CRM software is only one part of an ERP software

CRM only captures information pertaining to customers. Some CRM software may include pre-sales activities that are tracked and integrated into the quotation until the order is confirmed, while others may only be as simple as preparing and tracking the quotation. The ERP system, however, does much more than that. Not only can it capture this information, but it can also capture information across all departments, including procurement, warehouse, production, accounts, HR, and so on.

CRM only processes customers data while ERP Software processes more

While sales activities are indeed the profit-generating center for all companies, analyzing only customer information may restrict the company from serving and providing the best to customers. Imagine your inventory being managed manually in Excel, the excel file not being updated, and the last piece of stock being sold by another salesperson. The other salesperson would have wrongly committed to the customer for the ETD and affected customers’ impressions of your delivery record.

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What happens if a customer calls up and reports an issue with your product and you do not have an integrated warranty and after-sales servicing record system in your ERP software? You can still do the work, but probably not without searching through files and files of papers and documents. The amount of delay in reverting back to your troubled customers will affect customers’ impressions of your after-sales service, and the cycle continues on how willing clients are to rate you well in their internal vendor quality review. Do note to be careful though, as not all CRM softwares offered in the market have full coverage.

Some CRM system may cover “quotation management” only, while the better vendors may offer more, including campaign management, pre-sales prospective activity tracking, etc. The most ideal situation, where possible, is to implement ERP software integrated with a CRM module to give your company a wider and deeper coverage of data collection, which shall in turn allow management to perform the best possible analysis for quicker business decision planning and decision-making.

Contact us today to learn more about our CRM module and ERP System.

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