When looking for software solutions for your startups, you would have likely heard the mention of Enterprise Resource Planning - ERP and Customer Relationship Management - CRM software. These are software that are both used to increase the overall profitability of a business. The focus of both systems is on revenue generation, automation, and an increase in productivity.
The recent trend has changed, the modern customer places convenience at the very top of their priority list. Any service that streamlines and advances their shopping journey will be welcomed. This is exactly what chat commerce, also referred to as conversational commerce, brings to the table.
It breaks away from the typical ‘see product, buy product’ paradigm and allows for a more personal service to be delivered to customers. Chat commerce can be delivered through mediums such as online live support or popular messaging apps, such as Whatsapp, Telegram.
In order to grow your business, you shall need to understand ERP, CRM and Conversational commerce platform. Since their core functionalities are completely different, it's best for a business to first look at them as separate and stand-alone systems. If viewed separately, it's easier to see how each play a role in improving efficiency and increasing sales.
What is CRM?
CRM is a software that manages multiple ways a customer interacts with a business. CRM features were initially developed for sales departments and were known as sales force automation. The CRM system's main job is to give the business a central repository of all customer data. It's essential that your CRM is tracking all customer interactions. With all the correct data, your businesses can make more informed decisions on which customers to pursue added revenue. It will track how your sales teams are performing. To manage and service customers efficiently and appropriately, and more.
With a centralized CRM system, sales reps will know if the customers they have visited have outstanding customer service tickets and can respond accordingly. Customer service would know if a caller is a high-value customer or a potentially high-value customer and use the information to address the issue or route them to the appropriate service tier accordingly.
What is ERP?
ERP can serve as a shared database to all the parts of an organization. At its core, ERP focuses on financed of the company. This includes the general ledger (GL), accounts payable, accounts receivable, payroll, and financial reporting. ERP also extends to order management, inventory management, supply chain management, and data-related services organizations. Our ERP touches on procurement, production, distribution, fulfillment, Human Resources Management Systems (HRMS), eCommerce.
In short, an ERP system is typically a heavy and comprehensive system that helps manage all aspects of a company's operation.
What should Your Business to start with? ERP, CRM and Conversation Commerce
The answer depends on two factors :-
What are your business requirements and IT capacity?
What are your business needs in the future?
If your business is looking to streamline all your processes and replace an existing suite of non-integrated applications, the best bet is an ERP system.
However, if you need more focused capabilities to handle marketing and customer relationships, a CRM system is probably a better option.
ERP Vs CRM
Before you decide, you should ask yourself the following questions:
What would most benefit your business - operational efficiency or greater sales volume?
The way an ERP system increases your business profits is by improving efficiency. An ERP does so by streamlining business processes and cutting overall costs.
In comparison to ERP, CRM systems are not as concerned with lean process improvement. Instead CRM software increases your profits is by increasing the sales volume.
CRM does this by empowering employees with data and tools to improve customer service and make bigger and better sales.
Does your business need a new financial system ?
If the answer to the above question is yes, your business probably need an ERP system. Unless your company is made up of a sales and marketing model, your requirements can be fulfilled by a CRM system, and your business most likely needs a financial system of record.
Is your project a digital transformation?
Companies that are pursuing digital transformation will focus on creating new business models. Such companies need a scalable ERP solution with a promising product roadmap. Mercury suite comprise an integrated model on ERP, CRM and Conversation commerce.
Key Takeaways
CRM and ERP are both fantastic tools for optimizing revenue
ERP is a comprehensive solution that centralizes front and back-office processes
CRM mainly deals with sales, email marketing, and customer relationships, lead generation and deals
The system that is best for your business depends on the scope of your needs and the amount of investment that you are ready to make
ERP and CRM systems combined together tend to be less expensive than purchasing both systems individually
