You've hit that growth wall. Your spreadsheets are bursting at the seams. Your team can't find critical information when they need it. You're starting to lose track of customer relationships. Sound familiar?
These are classic symptoms of business growing pains. They pop up in almost every successful company that scales beyond its starter systems.
The good news? Advanced software solutions can help you break through that wall. Two powerhouses stand out: Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems.
But which one does your business need? Or do you need both? And how do they work together? For small or midsized business owners, these aren't just academic questions! They're make-or-break for your next phase of growth.
Read on to learn whether to choose an ERP platform or CRM software:
- What is ERP Software? Core Functions and Benefits
- What is CRM Software? Core Functions and Benefits
- ERP vs CRM: Key Differences Explained
- Choosing Your ERP's Built-in CRM vs. a Standalone CRM Solution
- How Much Does it Cost for CRM vs ERP Software?
- Understanding ERP Platform Synchronization with a Standalone CRM
- How an ERP Platform Works with Built-In CRM Functions
- ERP vs CRM: Which Does Your Business Need More?
- Finding the Right ERP Partner to Integrate Your Systems
What is ERP Software? Core Functions and Benefits
Your ERP platform is a central hub that connects your financial data, inventory, supply chain, and manufacturing. No more scattered spreadsheets or disconnected software tools. Instead, an ERP system gives you one source of reliable information for what's happening behind the scenes in your operations.
Core ERP platform functions:
- Financial management and accounting
- Supply chain and inventory tracking
- Human resources
- Procurement and vendor management
- Ordering and customer service
An ERP system shines when your internal processes need stronger, seamless coordination.
For example, when a customer places an order, your ERP software tracks it from purchase to delivery. The software automatically updates inventory levels and financial records. This automation cuts down on manual data entry and reduces errors. The system also gives you real-time insights into how your business is performing.
The benefits can be game-changing. Companies that implement ERP systems often report faster financial close times. They get better financial controls and reduce their operational costs. And they can make smarter decisions based on more accurate information.
What is CRM Software? Core Functions and Benefits
While ERP software focuses on back-office operations, CRM software is all about the customer-facing side of your business. It's the software that helps you turn prospects into customers and customers into loyal fans.
Core CRM software functions:
- Contact and lead management
- Sales tracking and forecasting
- Marketing campaign management
- Customer service and support
- Performance metrics and analytics
Top CRM software lets you see the complete picture of your customer relationships. When a sales rep calls a client, they can see past purchases, support tickets, and even social media interactions. This helps a sales rep personalize the conversation and give better service. Reps can also spot opportunities for upselling or cross-selling.
The benefits? Businesses using CRM systems often see improved customer satisfaction, increased sales, and more effective marketing. The data in your CRM system also helps you understand what's working and what's not, so you can refine your approach over time.
ERP vs CRM: Key Differences Explained
CRM and ERP systems serve different purposes in your business. Here's how they stack up:
|
Aspect |
ERP Platform |
CRM Software |
|
Primary Focus |
Internal operations and resources |
Customer relationships and sales |
|
Main Users |
Finance, operations, HR |
Sales, marketing, customer service |
|
Data Managed |
Financial, inventory, production |
Customer contacts, sales pipeline, service history |
|
Business Impact |
Optimizes processes, reduces costs |
Boosts revenue, improves customer experience |
Choosing Your ERP Platform's Built-in CRM vs a Standalone CRM
When you choose an ERP platform, you can use the built-in CRM functions. Or, you can have the ERP platform interface with a specialized CRM solution like Salesforce or HubSpot.
Not every company needs a complex CRM system with all the bells and whistles. For many businesses, the CRM functions built into their ERP platform will supply plenty of support.
Use your ERP platform's built-in CRM when:
- Your CRM needs are basic: If you primarily need contact management, a simple sales pipeline, opportunity tracking, and basic activity logging for follow-ups and phone calls, the out-of-the-box CRM built into your ERP system will meet your needs well.
- You value a single source of truth: Is having all your employees working in the same information system crucial to your business? Using the built-in CRM means everyone is always logging into the same tool and seeing the same information.
- Cost is a major consideration: The built-in CRM module is more economical. For example, Acumatica's CRM module is considerably less expensive than enterprise-level standalone CRM solutions.
Choose a standalone CRM when:
- You rely on mass email marketing: Does your company need email blasting capabilities for trade show leads or purchased contact lists? Standalone CRMs are better equipped for that. An ERP platform’s built-in CRM isn't designed for mass email campaigns and could risk getting your domain blocked.
- Your sales pipeline is complex: Some companies deal with advanced lead scoring, multi-stage pipelines, and automated nurturing campaigns. If this sounds like your business, specialized CRM tools will offer more complex pipeline management and automation.
- You want detailed sales analytics: Looking for comprehensive reporting with pipeline projections, ROI analysis, and advanced metrics? Standalone CRMs offer more powerful reporting capabilities for sales and marketing.
- You use specialized marketing or sales tools: Your team may use specialized calling services or tools like Slack, Mailchimp, or Calendly. These apps sometimes integrate more easily with standalone CRM platforms.
How Much Does It Cost for CRM vs ERP Software?
Costs vary so widely for CRM and ERP systems that your eventual pricing will depend heavily on which specific options you choose. The pricing structure offered by your partner company will often be based on several of the following factors:
- On-premises or cloud-based software (upfront costs vs subscription)
- Number of users
- Monthly transaction volume
- Implementation costs
- Add-on functionality modules
- Customization
- Training and support
All these variables mean you can’t assume you’ll get one overall price advantage for choosing either standalone CRM or ERP software. The only sure thing is that if you want both CRM and ERP functionality, it will almost always be more economical to choose the built-in CRM module for your ERP platform.
To get the most for your technology dollar, look for partners like Stellar One that offer free trials and cost guarantees. Acumatica’s cloud-based ERP platform also stands out for basing its pricing on actual consumption rather than on your number of user licenses.
Understanding ERP Platform Synchronization with a Standalone CRM
If you’re thinking about integrating Acumatica with a standalone CRM like Salesforce or HubSpot, here’s how the connection works. Your connection will most often function as an interface that imports data from the CRM system to the ERP platform. (There may be use cases where data flows in the other direction as well.)
This interface allows you to synchronize leads, contacts, accounts, opportunities, and marketing lists between systems. It may require some scheduled automation or transfer of data. It's not a completely hands-off, two-way communication. Any integration of a standalone platform will require more oversight than using the built-in CRM functions.
How an ERP Platform Works with Built-in CRM Software Functions
When you use your built-in CRM software, your ERP and CRM systems talk to each other. They create a seamless flow of information across your business.
For example, when a sales rep in your CRM system creates a quote for a customer, that information lives within the same database common to the whole ERP system. The ERP software checks inventory, schedules production or procurement, and creates the necessary financial records. The sales rep can see real-time product availability and pricing without leaving the CRM, while the operations team gets advance notice of upcoming orders.
This built-in compatibility gets rid of the data silos that frustrate many growing businesses. You won’t have any more conflicting information or communication gaps between departments.
ERP vs CRM: Which Does Your Business Need More?
Not sure which system your business needs right now? Ask yourself these questions:
- Is your financial management becoming complex and time-consuming? An ERP platform should be a priority.
- Are you struggling to keep track of customer information and sales opportunities? You need CRM functions, but the ERP platform may also offer the CRM options you need.
- Do you have a small customer base but complex manufacturing or inventory needs? ERP platform first, CRM software later.
- Are you experiencing friction between sales and operations? You need both an ERP platform and CRM functionality, with an interface between them.
Most growing businesses will need both systems, but you don't have to implement them both at once. Start with the one that addresses your biggest pain points. Then add the other as your business continues to grow.
Finding the Right ERP Partner to Integrate Your Systems
When you are ready for both systems, your ERP platform will become a rock-solid foundation for your operations. You can integrate CRM functions with your finances, inventory, and distribution. Your ERP platform will transform your business and keep it running smoothly and efficiently.
But implementing an ERP system isn't a DIY project. At Stellar One, we support you with expert staff collectively offering over 150 years of experience in ERP platforms and software engineering. We are proud to be an Acumatica Gold Certified Partner.
The right ERP partner will do much more for you than just install software.
Stellar One will understand your business goals, map your processes, clean and migrate your data, and train your team for success. And just as importantly, we’ll provide proactive ongoing support as your business evolves.
Wondering how to get the best pricing for your ERP platform and support? Learn about our 5-Year Price Lock.
If you’re ready to launch your business to new heights with an ERP platform, check out our free trial.
