Understanding CRM ERP Integration

What are the types of CRM software?

There are different types of CRM software available, and following is a brief description of the three predominant types:

1. Collaborative: Collaborative CRM focuses on managing customers’ interactions, monitoring what was communicated, what form of communication was used (e.g., email, phone call, etc.), and what actions need to be taken (either by an employee or set up automatically) in order to better serve the customer.
2. Operational: Operational CRM relieves employees of repetitive sales, marketing, and customer service tasks, allowing them to nurture relationships and grow current and potential customer satisfaction.
3. Analytical: Analytical CRM helps businesses assess customer data, marketing campaigns, and customer service efforts, providing insights into how best usher prospects from lead to loyal customer.

What are the differences between ERP and CRM?

While both systems are essential for business growth, they serve different primary functions:

• Enterprise Resource Planning or ERP solution is a business management tool that integrates separate applications and systems onto a single, centralized platform. It focuses on the “back office”, managing internal processes like finance, inventory, supply chain, and HR. Its goal is to reduce costs and improve operational efficiency.
• CRM (Customer Relationship Management) focuses on the “front office.” It handles sales, marketing, and customer service interactions. Its goal is to drive revenue by acquiring and retaining customers.

Understanding the difference between ERP and CRM is key to leveraging their combined power. In addition to automating business functions and streamlining workflows, an ERP solution acts as the single database for internal and external information. This information is synchronized and shared with every team member, from the C-suite to the warehouse floor, so they can make informed, data-driven decisions in their respective roles.

Though an ERP solution and CRM software share similar attributes, they are not the same. An ERP solution helps companies effectively manage and automate their behind-the-scenes functions, processes, and workflows while CRM software offers specific features for handling all customer relationship responsibilities. CRM is part of ERP when integrated, enhancing how businesses interact with customers and manage internal operations.

Neither an ERP solution nor CRM software can replace the other, but they can seamlessly work together to provide a comprehensive, end-to-end, and connected system.

How do ERP and CRM work together​?

On its own, CRM Software is a powerful, modern application that helps businesses identify leads, detect issues, automate repetitive tasks and more. But can CRM be integrated with ERP? The answer is yes—it creates a unified database combining marketing, sales, billing, and finance data into one accessible interface.

When integrated, CRM and ERP systems exchange data automatically, removing the need for manual data entry. Here is how they work in unison:

1. Unified Database: Marketing, sales, billing, and finance data exist in one accessible interface.
2. Streamlined Quotes: Sales reps can check real-time inventory levels within the CRM before issuing a quote, preventing backorders.
3. Automated Handoffs: Once a deal is closed in the CRM, the ERP system automatically converts it into a sales order and invoice, triggering fulfillment without manual input.
4. 360-Degree Customer View: Support teams can see a customer’s payment history and order status, allowing for more informed service interactions.