CRM vs ERP – What are the differences? Part 1: CRM Software

Posted on 22 Jan at 12:58 pm

The IT industry is full of acronyms. Even the industry name itself, meaning information technology, is an acronym. People who work in technology tend to throw them around assuming people know what we are talking about. Two of these are CRM and ERP, two types of software that Synergy Technology specialises in, but what do these terms mean?

The simple answer to this question is customer relationship management and enterprise resource planning, clear? No, I thought not! If you are looking at a software solution to simplify your business processes, you probably want to know what they actually mean, and more to the point, which one is going to be of most benefit to your business.

Part 1: CRM Software

In part one of this 2-part blog post we are going to look at CRM software, what it is, what job functions in an organisation might use CRM software, what the main features and key benefits of CRM software to your business.

External Customers vs Internal Resources

To understand what makes these types of software solutions different, we must first look at the differences in focus between the two types of software, customers and resources.

Customers and are external to the company; they are how the company generates the income it needs to succeed and prosper. As such, CRM is mainly concerned with recoding and processing customer and prospect data and recording interactions with them.

Resources are the internal tools and building blocks needed to ensure the company’s processes run smoothly and efficiently. Equipment, stock, premises, working capital and even employees are all resources.

What is CRM?

CRM stands for customer relationship management. A CRM system does just that, help you more efficiently manage the relationships you have with customers and potential customers, so that you can maximise sales opportunities, as well as build and maintain lasting relationships with your customers. Examples of CRM systems include Microsoft Dynamics 365 Sales and SuperOffice CRM.

Who Uses a CRM System?

CRM systems tend to be used by the customer-facing parts of the business i.e. sales, marketing and customer service. CRM helps to increase the effectiveness of these teams, allowing them to do more in less time.

Main Features of CRM

A CRM system offers a wide range of features to help businesses manage their customer interactions effectively. Here are some of the main ones:

Contact Management

A CRM system enables you to store information about all your customers and prospects, enabling you to make more informed decisions.

A centralised database to store and organise customer information, including contact details, company profiles, and interaction history.
Lead management to track sales prospects from initial contact to conversion.
Data Segmentation allows you to group customers based on various criteria, such as industry, location, or purchase history.

Sales Process Management

A CRM solution can help both salespeople and managers monitor the sales process and inform decisions on how to allocate resources to maximise revenue.

The sales pipeline allows salespeople and managers to visualise the sales process and track opportunities at different stages.
Sales forecasting tools help to predicts future sales performance based on historical data.
Quote generation creates professional sales proposals and quotes for customers.

Marketing Automation

Marketing plays a crucial role in CRM by driving customer acquisition, nurturing leads, and fostering customer loyalty. In some CRM systems, such as SuperOffice CRM marketing is included, in others it is an optional extra.

Email marketing integration allows marketers to send personalised email campaigns to targeted customer segments, to generate sales leads.
Marketing automation can automate repetitive marketing tasks, such as sending follow-up emails or nurturing leads.
Social media integration allows you to track customer interactions on social media platforms.

Customer Service

Some CRM systems, such as SuperOffice CRM include customer service modules, which are designed to streamline and improve the way businesses interact with their customers. These provide tools and features to efficiently manage customer inquiries, complaints, and support requests.

Case management tracks customer inquiries, issues, and resolutions.
Knowledge base is a centralised repository of frequently asked questions and solutions.
Live chat can provide real-time customer support through online chat.

Key Benefits of CRM Software

In the commercial world, a CRM system may help with everything from improving customer service to raising the productivity of sales teams. There are several benefits to using a customer relationship management system to handle your everyday operations, regardless of the size of your company:

Improved Customer Relationships

Centralised Customer Data: A CRM provides a “single source of truth” for all customer information, ensuring everyone in the organisation has access to the same data.
Personalised Interactions: By understanding customer preferences and history, you can tailor your interactions to their specific needs, building stronger relationships.
Enhanced Customer Service: A CRM can help streamline customer service processes, improve response times, and increase customer satisfaction.

Increased Sales Efficiency

Lead Management: CRM systems help you track leads, prioritise them based on potential, and automate follow-up tasks.
Sales Pipeline Management: Visualise your sales pipeline, identify bottlenecks, and ensure a smooth sales process.
Sales Forecasting: Use historical data to predict future sales, allocate resources effectively, and set realistic goals.

Improved Marketing Effectiveness

Targeted Marketing Campaigns: Segment your customer base to deliver personalised marketing messages.
Campaign Tracking: Measure the effectiveness of your marketing efforts and optimise your campaigns.
Lead Generation: Generate leads through various marketing channels and track their progress through the sales funnel.

Enhanced Team Collaboration

Shared Information: Ensure all team members have access to the same information, improving collaboration and reducing silos.
Task Management: Assign tasks, set deadlines, and track progress to ensure everyone is on the same page.
Reporting and Analytics: Generate reports to analyse team performance, identify areas for improvement, and make data-driven decisions.

Improved Business Insights

Data-Driven Decisions: Use CRM data to make informed decisions about sales strategies, marketing campaigns, and customer service initiatives.
Trend Analysis: Identify trends in customer behaviour, market conditions, and sales performance.
ROI Measurement: Measure the return on investment of your marketing and sales efforts.

So, those are the main features and benefits of typical CRM systems, although they can vary slightly from system to system, and of course they can also be modified and improved with add-ons and bespoke development.

To find out how ERP software differs from CRM, you can read the second part of our blog post here: CRM vs ERP – What are the differences? Part 2: ERP Software

The Synergy Technology Difference

The team at Synergy Technology are amongst the best, most experienced people in the industry in terms of successful CRM and ERP software deployments.

You will get a team who will work in partnership with you to ensure your business application delivers real, meaningful benefits, driving strategic change and improving efficiency. You will be looked after by a team that truly cares, is completely transparent and delivers exacting solutions every time.

We’ve been at the forefront of business software solutions for over 25 years and have worked with hundreds of businesses in a range of industries, so are well placed to help and advise you at every stage of your journey.