CRM (Customer Relationship Management) is software that manages all the ways a customer interacts with a business. We normally refer to CRM software when we talk about CRM systems. Sales, marketing, and customer support are all organized, automated, and synchronized with CRM software.

The central promise of CRM is to give the business a central repository of all customer data, tracking all customer interactions. Armed with this information and using analytics, businesses can make more informed decisions on which customers to pursue for added revenue, how sales teams are performing, how to service customers efficiently and appropriately, and more. For example, a manager can listen to sales managers' conversations with customers at any time and understand what problems customers are experiencing and whether employees need additional training on the product.

What it does:

1. It speeds up the work of managers by about half. They will be able to process applications more quickly, spend more time on the actual sales, and therefore be able to increase their volume and reduce costs.
2. Allows for the implementation of clear business processes for interaction with customers.
3. Helps to increase sales and the average receipt, and thus increase profits, by an average of 40-50%.
4. Higher profits allow you to invest more resources in the growth and development of your business. And it gives you every chance of becoming the head of a large, successful corporation.

Enterprise resource planning (ERP) evolved out of material requirements planning (MRP), which was a way for manufacturers to understand and manage all the resources needed to operate a successful business. ERP serves as a shared database to all the parts of an organization. At its core, this means finances, including the general ledger (GL), accounts payable, accounts receivable, payroll and financial reporting. But ERP also extends to inventory management, order management, supply chain management and data related to services organizations. ERP touches on procurement, production, distribution and fulfillment as well. Some ERP systems also offer Human Resources Management Systems (HRMS), CRM and ecommerce.

What functions the ERP will provide:

1. Planning. The software will help to prepare the right stocks of materials, raw materials, check the stock levels and propose an order.
2. Document management. Fast processing of all documents, intuitive settings and simple storage.
3. Transparency. All transactions, transaction dates, volumes and other useful information are stored for comfortable interaction.
4. One network. All departments will be on the same platform at the same time . Even if they all work on the same file, this will not affect performance.
5. Personnel accounting. It monitors staff numbers, advises on staff shortages, and helps with payroll calculations.
6. Suppliers. All paperwork, intermediary database, automatic volume and availability queries, order generation.
7. Customers. Storage and optimisation of the data set for each customer.
8. Service and repair. The software should have its own manager to help with debugging, configuration and repair work in the event of breakdowns.

Nearly all growing companies, from small and midsize businesses (SMBs) to enterprises, will eventually need both an ERP and a CRM system — or a single platform for both. Companies running their financials on entry-level accounting tools like QuickBooks or even spreadsheets often turn to an ERP system when they find those systems are holding back their growth, are inefficient or they simply need something more robust.

The same can be said for businesses managing their customer relationships in individual sales reps’ email clients, spreadsheets or contact management systems. Whether a company first invests in CRM or ERP will depend on its business model. A company with a small set of high-value customers and complex financials might be more apt to first invest in an ERP system, while a company with relatively straightforward financials and a large customer base requiring frequent contact might do the opposite.

Ultimately, however, both systems are essential for most companies.