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Understanding CRM ERP Integration

ERP-CRM Integration takes your customer service—and therefore, your company’s success—to a whole new level.

Understanding the synergy between ERP and CRM solutions is critical for businesses looking to optimize workflows and improve customer relationships. This guide explores how ERP and CRM work together, their unique roles, and the advantages of integrating them into one comprehensive system.

What is CRM software?

Customer Relationship Management (CRM) Software aids businesses of all sizes—and in all industries—in effective management of their customers’ journeys, from lead to deal to support. CRM software is more than just a customer service tool. It’s a powerful system that helps businesses build strong relationships with their customers by keeping all their information organized and accessible. When integrated into an ERP solution, CRM can align customer data with operational workflows, such as billing and inventory management, creating a unified platform.

How does CRM software work?

CRM software is designed to be a one-stop shop for customer information. Leads, opportunities, quotes, feedback, service requests, meeting notes, and any other customer-centric interaction—whether in person, on the phone, or via email—are inputted into the system. This integration with ERP systems ensures real-time sharing of customer information across departments, improving collaboration and reducing inefficiencies.

What are the types of CRM software?

There are different types of CRM software available, and following is a brief description of the three predominant types:

Collaborative: Collaborative CRM focuses on managing customers’ interactions, monitoring what was communicated, what form of communication was used (e.g., email, phone call, etc.), and what actions need to be taken (either by an employee or set up automatically) in order to better serve the customer.
Operational: Operational CRM relieves employees of repetitive sales, marketing, and customer service tasks, allowing them to nurture relationships and grow current and potential customer satisfaction.
Analytical: Analytical CRM helps businesses assess customer data, marketing campaigns, and customer service efforts, providing insights into how best usher prospects from lead to loyal customer.

Understanding the difference between ERP and CRM

An Enterprise Resource Planning or ERP solution is a business management tool that integrates separate applications and systems onto a single, centralized platform. While CRM focuses on managing customer interactions, ERP handles back-office operations such as inventory, production, and finance. Understanding the difference between ERP and CRM is key to leveraging their combined power. In addition to automating business functions and streamlining workflows, an ERP solution acts as the single database for internal and external information. This information is synchronized and shared with every team member—from the C-suite to the warehouse floor—so they can make informed, data-driven decisions in their respective roles.

How does ERP differ from CRM software?

Though an ERP solution and CRM software share similar attributes, they are not the same. An ERP solution helps companies effectively manage and automate their behind-the-scenes functions, processes, and workflows while CRM software offers specific features for handling all customer relationship responsibilities. CRM is part of ERP when integrated, enhancing how businesses interact with customers and manage internal operations.

Neither an ERP solution nor CRM software can replace the other, but they can seamlessly work together to provide a comprehensive, end-to-end, and connected system.

How does ERP and CRM work together?

On its own, CRM Software is a powerful, modern application that helps businesses identify leads, detect issues, automate repetitive tasks and more. But can CRM be integrated with ERP? The answer is yes—it creates a unified database combining marketing, sales, billing, and finance data into one accessible interface.

Additionally, CRM ERP solutions often provide a self-service Customer Portal, allowing customers unlimited access to their contract, financial statement, and support case information, giving customers the ability to perform account-related activities online at any time and from anywhere.

"Acumatica has exceeded our expectations. From a technology and operations point of view, Acumatica ticks all the boxes: It’s engaging for users, scalable, flexible to meet your needs, and grows with you as a business."

Chris Drake, Chief Operating Officer

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How do you choose the best CRM ERP solution for your business needs?

There are very few disadvantages when you combine two powerhouse applications like CRM and ERP—a combination that helps companies achieve revenue goals and supports organizational growth. But if your team makes a poor choice when selecting a CRM ERP solution, you may find yourself suffering from:

A system that lacks usability, functionality, and scalability.
Employees resistant to using a new, unproven system.
Potential debilitating expenses resulting from inexperienced or untrustworthy vendors, lack of proper training, security issues, and more.

These and other concerning consequences of choosing the wrong system can be alleviated by making sure you ask the right questions. Here are a few questions that will help you get started:

Which CRM software type is right for our business needs?
Is the CRM software within the ERP solution the right type for your business?
Can the CRM software within the ERP solution integrate additional tools or types of CRM as your business grows?
Is the ERP solution able to seamlessly integrate additional CRM solutions should you need to rely on various types?
Is the ERP solution vendor knowledgeable about their CRM software (e.g., can they capably explain its features and functions)?
Is the CRM ERP solution intuitive and easy to use?
How much does the CRM ERP solution cost?
How does the CRM ERP solution compare to other products on the market?

As you ask these questions and your understanding of the CRM ERP’s capabilities grows, you’ll be able to dive into other important considerations, including discovering its marketing, reporting/dashboards, and workflow functionalities as well as the vendors’ ability to support you before, during, and after the implementation.

How Do You Successfully Implement a CRM ERP Solution?

Software implementations are notoriously challenging, but there are a few things that you can do to make a CRM ERP implementation successful.

Before making your CRM ERP decision, you must first communicate your plan and expectations clearly with your team. Not only will they appreciate knowing this is the plan and begin acclimating to the idea, but they can also offer their input into which solution may work best for them. This alleviates the concern that they may not use the new solution if they find it an inefficient tool. Their support—or lack thereof—can make or break your expensive investment.

Another tip for ensuring a successful implementation is making sure that the ERP vendor has a definitive implementation process that defines each step before you even take the first one. This plan should inform you as to how long the project is projected to take, the resources that will be used, any potential risks (and methods for overcoming them), and more.

Finally, you will need to create a dedicated implementation team made up of employees representing every department within your organization, and together, establish a robust relationship with the ERP vendor, whom you should choose based on its reputation for delivering successful implementations.

What are the benefits of ERP and CRM integration?

An integrated CRM ERP solution offers businesses a seamless way to manage customer relationships alongside operational processes. This integration ensures accurate, real-time data sharing, providing a single source of truth across departments.

With an integrated CRM ERP solution, every aspect of the customer’s journey is connected and transparent, providing businesses with a 360° view of all customer data. Additionally, this all-in-one solution allows businesses to:

Streamline lead management and events, shortening the sales cycle.
Determine campaign response rates and sales performance in terms of profitability.
Utilize ERP-CRM integration to align sales orders, quotes, and invoicing for improved efficiency.
Optimize contact management (e.g., create leads and contracts from email inbox, import customer data in bulk from Excel, and more).
Utilize sophisticated reporting tools and personalized dashboards.
Prioritize and respond quickly to customer requests and concerns.

And the automated features provided by a CRM ERP solution produce time-saving benefits that include (but are not limited to):

Linking sales orders and quotes to opportunities.
Using templates to create emails for automatic distribution.
Knowing when to follow up with leads who should be progressing through the sales funnels.
And more.

An integrated CRM ERP solution allows businesses to combine operational efficiency with superior customer service. By uniting these tools, you’ll improve decision-making, inspire customer loyalty, and support business growth.