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Tech Insights 5 min read

4 benefits to integrating a CRM with an ERP

Integrating a CRM with an ERP is a successful technique in the automation process. CRM and ERP integration are obvious choices for businesses wanting to deploy technologies that help them organize corporate resources and improve customer relationship management.

There are several benefits to combining a CRM and an ERP. But, before we continue with the example, let's look more closely at each system's definitions.

What is the difference between a CRM and an ERP?

A customer relationship management system (CRM) is software that allows you to manage your client relationships in steps. Prospecting, acquisition, integration, retention, and other aspects of customer management can all be separated and optimized. Each of these stages is standardized in the CRM to make them more automated. As a result, the program is able to handle each of the marketing contacts while also collecting key consumer data such as phone numbers, emails, purchase and payment patterns, and so on.

ERP software is a necessary tool for a company's effective financial administration. Its primary responsibility is to manage all of the organization's resources, including financial, material, and human resources. Inventory management is intertwined with accounting and payroll administration. The benefit of using an ERP system is that it provides a comprehensive financial overview of all your operations.

CRM or ERP, these two types of solutions may help you run a successful business by allowing you to maintain robust databases. Customer data is managed by CRM, whereas accounting data is managed by ERP. These software solutions, which are often utilized individually due to their complexity, become an even more powerful resource when combined, since they give an unparalleled supply of information about every aspect of the company's activities.

The first benefit of integrating a CRM with an ERP is the improvement of data quality

Data consolidation is without a doubt the first benefit of integrating a CRM with an ERP. Not only would integrating these two softwares help you to consolidate your data, but it will also allow you to centralize your database into a single location. You offer yourself every chance to make better informed management decisions by increasing the quality of your data. You will reduce the blind spots even in the most difficult situations by combining data from the sales department with financial data.

Whether it's accounting or sales, today's excellent management is all about data management. Executives who have access to high-quality, trustworthy, and validated data make the best decisions for their organizations' future. The quality of information is only further increased by combining data in two strong technologies, namely a CRM and an ERP.

The second benefit of integrating a CRM with an ERP is how easier it is to discover information and increase productivity

It is considerably easier to find and process information after your databases have been unified using a CRM and an ERP. Most managers overlook just how much time their employees spend looking for information. The usage of software solutions can thus reduce the time spent searching and increase team productivity.

However, productivity is more than just a matter of time. Employees with quick access to information that affects them have higher success rates, and their degree of responsibility adds to employee retention. An individual who has a sense of independence in his or her area, like any human resource, is more devoted and loyal to the business. Your teams become more productive and efficient as your turnover rate decreases.

Through automation, integrating CRM and ERP shortens sales and accounting processes. Quarterly closings, for example, can be sped up by several days with proper ERP calibration. Meanwhile, your salespeople will be able to finish sales transactions faster and enhance client satisfaction with CRM software.

The third benefit of integrating a CRM with an ERP is a global view of all activities

Integrating a CRM with an ERP is like working with two extra-large screens: combining these two programs gives you a 360-degree picture of your company. Full visibility gives you a complete overview of your business, whether it's the sales figures or its financial condition.

It's like running your company with a dual dashboard that allows you to know the health of your organization at any time and from any location, as well as monitor future trends while keeping its history in mind.

The benefit of combining a CRM with an ERP is this comprehensive vision: you can identify the finest goods or services at a glance, thanks to the data collected by the sales team, and then implement the most suitable marketing plan. You may also call attention to underperforming goods and determine whether or not to create a promotional offer to revive sales, or whether or not to renew stock, for example.

The facts will speak for themselves once ERP and CRM are integrated: is your highest-volume customer also your best payer? What percentage of your invoices are collected? Is your cash flow keeping your business afloat financially? The enormous dashboard that is CRM and ERP integration has all of the answers to these questions that you're probably already asking yourself.

The fourth benefit of integrating a CRM with an ERP is involving the sales staff into all processes for better reactivity

The ultimate benefit of combining a CRM with an ERP is that it establishes a link between the two teams, namely the sales team and the administrative and accounting personnel. Provided that information flows easily between departments, you have a strong possibility of successfully influencing organizational thinking inside your teams.

Your sales and marketing teams will be able to modify their tactics based on the observed outcomes and known performance if financial data is available to them. The sales team's reaction time is sped up as a result of their autonomy, as successful teams are built on agility. However, decision-making cannot be based just on intuition: data highlighting sales strengths and shortcomings is crucial for success.

By combining a CRM with an ERP, you may build a link between the two worlds without having to move from one to the other, as the databases can be accessed in a fluid and effective manner.

This is a fantastic gift to offer your sales team: the increase in customer satisfaction in firms that have linked a CRM with an ERP is astounding. There will be no more passing the burden from one employee to the next to handle the same client issue: both the sales and after-sales departments will have access to the same customer data and will be able to handle the matter from the same location.

Integrating CRM and ERP; do you really need both?

Despite the numerous benefits of combining CRM and ERP, you may be unsure if you require both.

  • Is it necessary to examine your sales cycle?
  • Do you wish to automate some aspects of your client relationship management?
  • Do you want to make changes to your marketing approach depending on your sales results?
  • Do you want your sales staff to have a deeper understanding of your customers?
  • Are your administrative personnel getting bored of repeating the same activities at the end of each accounting cycle?
  • Have you experienced payment delays as a result of a reminder or communication issue with your customers?
  • Is it tough for you or your staff to acquire all of the essential information when launching a new project or strategy?
  • Do you want your staff to be able to make well-informed decisions?

If you responded yes to most of these questions, you most likely need to combine a CRM with an ERP to increase your team's performance while also improving the efficiency of your organization.

In this case, the integration of CRM and ERP systems is essential for increasing sales and maintaining a healthy financial position.

Integrating your CRM and ERP with Gestisoft

Gestisoft are experts in ERP and CRM software. When you use our services, you can expect a seamless and functional CRM and ERP integration right away. To find out which software solutions are best suited for your business, contact our specialists today.

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July 26, 2021 by Frédéric Charest VP of Marketing

Data-driven Growth Marketer with a Passion for SEO - Driving Results through Analytics and Optimization