CRM or ERP Software: How to Choose the Right Tool for Your Business?


Taking the turn towards digital transformation often involves choosing between different routes, and CRM and ERP software commonly cross your path; while they point towards the same direction (improving performance and supporting growth), they cater to distinct functionalities and challenges. So how can one avoid feeling lost and choose the most suitable path?

The confusion between the two most widespread types of management software on the market is common and can hinder their adoption; CRM or ERP, that is often the question! Although these two types of tools aim to meet common goals, their functional scopes are indeed distinct. Understanding the differences between a CRM software and an ERP software allows for the deployment of the tool most suited to one’s goals… Even if it means choosing both. Here’s some insight.

CRM vs ERP: Making the Right Choice

As you may have understood, choosing between a CRM or ERP tool primarily depends on your company’s goals, the scope of your needs, and the available budget:

  • If you aim to improve customer relations, support your sales team’s activities, and increase sales, a CRM like Salesforce would be the most suitable choice;
  • If the priority is to streamline and optimize your company’s organization and reduce management costs, an ERP like SAP will be more effective.

Good to know: Some hybrid software such as Microsoft Dynamics 365 or Oracle Business Suite allow combining the functionalities of both tools.

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