What’s the difference between CRM and ERP?

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. Customer Relations Management (CRM) and Enterprise Resource Planning (ERP) are similar in many ways but have different core functionalities. For business solutions that increase revenue, automation, and productivity both are important. In some areas, these systems overlap and can be fully integrated into others. What is CRM? CRM at its simplest is processes and systems for managing the interactions between an organization and potential and current clients. CRM applications are used to automate, organize sales, customer service, and marketing. CRM applications have been developed to connect all areas of customer experience, keep the customer happy and, in turn, keep them loyal and more valuable to your business. It is the process of identifying potential leads/prospects, guiding them to close the business through the sales process. Once a customer, it ensures that you maintain that relationship and either encourage higher value or frequent orders to repeat business. What is ERP? Where the customer is managed by CRM, ERP is used for business management. With the ERP system, the business processes of your company can improve. All employees enter the information into the ERP system, generating information in real-time. If problems are found in any department it will create automatic alerts in other departments. This enables departments to start planning for issues before they become an issue within that department. CRM Software manages front-office activities: Organize marketing efforts Manage the sales pipeline Calculate time spent on converting leads to closing deals Streamline your sales processes Automates customer service Track a customer’s interactions with your business Share marketing and sales collateral Create data reports Learn which products sell best and when Prioritize leads Manage inventory based on historical sales data Collaborate to sell as a team Manage your business contacts Manage your business leads Share customer profiles with co-workers See where leads come from ERP Software manages back-office activities: Distribution process management Supply chain management Services knowledge base Improve the accuracy of financial data Facilitate better project planning Automate employee life-cycle Standardize critical business procedures Reduce redundant tasks Assess business needs Accounting and financial applications Lower purchasing costs Manage human resources Payroll