ERP or CRM – Which Software Do You Need?

Table of Contents

In this article, we are talking about CRM and ERP platforms. Both types of software increase profits but do it in different ways. Do you want to know which option is more beneficial? Read this article to the end to find out if your business really needs ERP or CRM platform?

What Is Enterprise Resource Planning Software (ERP)?

It is a platform that simplifies workflows for large organizations that want to limit complexity.

What Are The Benefits of ERP?

Businesses implement an ERP system to enhance business performance. Among the things that ERP tools are capable of are:

  • Tracking financial and accounting data 
  • Monitoring employee timesheets and life cycle
  • Storing knowledge base for products and services
  • Managing transparent supply chains
  • Simplifying business statistics to aid in decision making

Take into account that ERP systems have limitations. First, ERP software can struggle to be user-friendly and flexible. The cost is also a limitation as it can be viewed as a luxury by small or mid-sized companies. Also, ERP software only focuses on backend parts of the business, and in terms of customer-facing operations, ERP software is not something that is widely used.

Among the examples of popular ERP platforms, we can mention:

What Is Customer Relationship Management Software (CRM)?

CRM platform focuses on customers. It lets you track and customize the customer journey from start to finish. CRM software provides you with the potential to reach customers, learn about them and tailor your communications to convert them.

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74% of companies say that a CRM system improved their customer relationships while 65% also note increased sales quota.

CRM software is capable of many features such as:

  • Tracking profiles of existing customers and potential leads
  • Following prospects as they go through a sales pipeline
  • Storing references to marketing efforts
  • Analyzing sales data to allow the teams to optimize strategy
  • Helping sales and marketing teams with prioritizing leads

What Is The Scope of A CRM System?

For large teams, the CRM platform can manage most of the team’s interactions on a daily basis. On the other hand, smaller teams may look towards CRM software to simply provide high-level analytics and data storage.

What Are The Limitations of CRM Software?

It is limited in scope because the software only affects customer-facing departments.CRM platform is also limited by your business’s ability to collect leads. Also, some teams have trouble fitting their usual activities in a standardized CRM process. For example, sending a customer a quick email is not really something that needs to be tracked, or would you track it anyway to make sure your CRM optimizes this process too?

Among the most recognizable CRM examples, we define: 

  • Salesforce 
  • HubSpot
  • Insightly

ERP or CRM – Which Software Do You Need?

Should You Use ERP or CRM Software?

In fact, it should really come down to your goals and current challenges. Among the questions you may want to ask yourself when making the decision are:

  • How large is my business and how much do I expect it to grow?
  • Am I more concerned with growing my business or optimizing my business?
  • Is there a large number of competitors in my business industry?
  • How much inter-departmental collaboration exists in my business?
  • Am I more interested in providing products or services?
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Let us share our experience and help you figure out what your company needs.

Which Businesses Need CRM Software?

The truth is any business looking to improve growth, retention, and customer satisfaction would ideally be utilizing CRM tools to accomplish those goals. According to nucleus research, on average, CRM pays back $8.71 for every dollar spent, which is an impressive ROI.

Which Businesses Need ERP Software?

Businesses that have already reached a strong level of growth may lean towards choosing an ERP system to help them optimize their organization.

When Would You Want Both ERP and CRM?

It is not necessary to limit yourself to one of these options. You might need to improve both growth and optimization. So, feel free to integrate both ERP and CRM. The data available on both tools can benefit the work done in the other. However, our developers note that some software will never be compatible, and the engineering work to implementing the integration can be costly.


To sum up, before making a choice, it’s necessary to consider every detail in reaching goals. If you want to have customized ERP or CRM software for your company, the AminSoft team can help you develop your customized software with optional modules and our services. So feel free and contact us to arrange a meeting.

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