ERP vs CRM comparison

Managing business operations and customer relationships can be challenging when a company is large or growing quickly. ERP and CRM provide software solutions that simplify everyday business tasks through data management, automation, and reporting.

ERP and CRM are easily confused, with some overlapping features and benefits. However, these systems serve different core functions, and knowing the difference can help you choose the perfect system for your business needs.

In this article, I compare ERP and CRM, outlining the key differences in price, functions, benefits, and use cases. The Cybernews team has also thoroughly reviewed the best ERP and CRM solutions, and I’ve included a summary.

Read until the end to discover the key differences between ERP and CRM, which software solutions best suit your business, and the top tools to optimize your workflow.

What is an ERP?

Enterprise Resource Planning (ERP) is a software system that helps manage and automate core business processes for various departments, including finance, supply chain, manufacturing, and human resources.

Its core purpose is to centralize all internal business data to ensure consistency, accuracy, and smooth operations. With an ERP system, companies can:

• Manage all departments from a single platform
• Track financial transactions
• Monitor inventory
• Oversee acquisition
• Control production scheduling
• Handle payroll
• Ensure regulatory compliance

Some ERPs are cloud-based, allowing easy remote access, automatic updates, and simplified scalability. Others are company-hosted for complete data control, more customization, and effortless compliance.

ERP software collects and stores data from various departments in a centralized database. It categorizes this data into modules, such as accounting, sales, and HR.

ERP users across departments can log in and manage data using the tools in their module. Additionally, many systems automate everyday tasks, such as reordering stock when inventory is low or updating sales orders.

ERPs offer many benefits, including the ability to view real-time updates, generate reports, and make more informed decisions. Many industries use ERP software, and it’s crucial for managing retail, healthcare, manufacturing, and logistics.

ERP benefits

Thanks to a massive range of benefits, ERPs are a popular choice for both big and small companies. With an ERP, you can:

• Centralize data. Manage all finance, supply chain, HR, and other departments’ data from one platform. A single source of truth reduces errors and improves data accuracy.
• Improve efficiency. Automate repetitive tasks, including inventory tracking, payroll processing, and financial reporting. With ERPs eliminating manual work, employees can save time and improve productivity.
• Scale easily. Add new modules, expand various departments, and create new functionalities as needed. By design, ERPs support long-term business growth with flexible customizations.
• Forecast better. Anticipate demand, control inventory levels, and relocate resources effectively. ERPs have built-in analytics and reporting tools for intelligence-driven decision-making.
• Reduce expenses. Avoid unnecessary overheads, poor resource management, and other costly mistakes. ERPs automate workflows and centralize data to reduce common human errors and offer valuable insights for business optimization.
• Ensure compliance. Lower the risk of legal issues and penalties. ERP systems maintain accurate records, automate reporting, and ensure financial transparency.
• Enhance collaborations. Work with up-to-date and reliable information. An ERP allows all departments to communicate and collaborate easily using the same system.
• Boost customer satisfaction. ERPs can improve order processing, inventory handling, response time, and service deliveries, resulting in happier customers.

The best 3 ERP systems

After analyzing features, pricing, and customer satisfaction, the Cybernews team and I found the top ERP systems. Here are the best three and why.

1. MRPeasy – optimize manufacturing or eCommerce on a budget

Best for:	Small to midsize manufacturers and eCommerce businesses needing a budget-friendly ERP
Free trial:	Yes
Starting price:	From $49/month
Top features:	Production planning, inventory tracking, CRM, and automated purchasing

Try MRPeasy

MRPeasy aims to simplify product management and streamline business operations for small companies that lack a big budget.

Capabilities. It allows you to track inventory, manage customer relationships (built-in CRM), automate restocking, and plan production. It integrates with various apps commonly used by product-based businesses, including QuickBooks, Xero, Shopify, and WooCommerce.

Ease of use. MRPeasy is designed for quick setup and simple use, making it suitable for businesses with limited technology skills and those needing intuitive software. Unfortunately, there’s no live chat, but ticket support is helpful.

2. NetSuite ERP – get a comprehensive ERP for bigger businesses

Best for:	Midsize to large businesses that need an advanced ERP system
Free trial:	Yes
Starting price:	On request
Top features:	Financial management, inventory control, supply chain automation, and real-time analytics

Try NetSuite

NetSuite ERP is a complete business management solution, offering a wide range of features and automation to cover the needs of even the largest enterprises.

Capabilities. Using Netsuite, you can automate financial processes, manage inventory, and optimize the supply chain with powerful AI insights. Plus, the Netsuite Connectors support smooth integration with leading marketplaces, third-party logistics, and point-of-sale systems.

Ease of use. With vast customization support and integrations, NetSuite can handle complex tasks. However, with so many features, setup takes time, and it is more suitable for businesses with a dedicated technical team.

3. Katana – use advanced ERP features to grow your SMB

Best for:	Small to mid-sized eCommerce and manufacturing businesses
Free trial:	Yes
Starting price:	From $199/month
Top features:	Live inventory tracking, production planning, order management, integrations with Shopify and WooCommerce

Try Katana

Katana is an ERP suitable for small to midsize eCommerce and manufacturing businesses. It has many useful, advanced, product-focused features.

Capabilities. The system includes the Shop Floor app for tracking product-related tasks and a warehouse app for fulfillment. It also supports barcode scanning for efficient inventory management and offers real-time product tracking, production planning, order management, and easy integrations with Shopify, WooCommerce, QuickBooks, and more.

Ease of use. Katana's user-friendly interface makes it simple for teams to manage daily operations without extensive technical expertise. It also has a comprehensive knowledge base and fast, responsive customer support.

What is a CRM?

Customer Relationship Management (CRM) is a software tool that assists businesses in managing customer interactions, sales pipelines, and marketing campaigns.

Its primary purpose is to centralize customer-related data to help build and maintain a strong relationship with buyers. Using a CRM system, companies can:

• Store, label, and access customer contact details
• Monitor sales leads and deal progress
• Automate follow-ups and marketing campaigns
• Analyze customer interactions and purchasing patterns
• Manage customer support and service requests
• Segment audiences for more targeted marketing
• Generate reports and forecasts

There are cloud-based CRMs that support remote access, real-time updates, flexible packages, and easy integration with other tools. Alternatively, some businesses opt for on-premise CRMs, which support complete data control and often have more customization options.

A CRM tool gathers customer data from various sources, including emails, calls, social media, and recorded in-person meetings. The tool then organizes this data into appropriate modules, usually sales, marketing, and customer service.

CRM users can log in to access the relevant data and tools from their assigned modules. Many also offer automation features so you can schedule follow-ups, send personalized emails, and generate leads based on previous engagements.

A CRM offers a complete overview of customer interactions and provides vital data to improve the customer experience. It’s an essential tool for any business that depends on customer relationships, including retail, real estate, finance, and eCommerce.

CRM benefits

CRMs cater to many businesses, offering many benefits that most customer-focused companies need. With a CRM, you can:

• Cluster data. Centralize all key customer information from emails, call logs, social media interactions, transaction history, and more. CRMs create a single source of truth to increase accuracy and allow for easy customer management.
• Improve customer relationships. Store interaction history, preferences, and purchase details. With comprehensive CRM tracking, it’s easy to personalize communication, increase response times, and monitor service quality for stronger buyer relationships.
• Enhance sales tracking. Organize and analyze sales funnels with advanced lead, follow-up, and transaction tracking. CRMs help sales teams prioritize the right tasks and close deals effectively.
• Increase efficiency. Automate tasks, including email campaigns, lead nurturing, and customer segmentation. CRMs automatically handle common tasks to improve efficiency.
• Gain valuable insights. Access detailed reports on customer behavior, sales performance, and campaign effectiveness. Using a CRM, you can quickly track key metrics to identify trends and refine strategies for the best results.
• Build customer loyalty. Use automated follow-ups, personalized offers, and issue tracking. CRMs include a diverse toolset that, when well managed, reduces churn rates.
• Strengthen collaboration. Allow sales, marketing, and customer support teams to share real-time customer data. CRMs ensure consistency in data access and accuracy to improve coordination.
• Manage growth easily. Support expanding customer bases and changing businesses without disruption. CRMs offer a wide range of customizable modules and integrations for flexibility.

The best 3 CRM systems

The Cybernews team and I reviewed CRM systems using product pages, customer feedback, and expert opinions. These are the three best options for 2025.

1. Salesforce – drive sales with advanced technology

Best for:	Growing businesses and enterprises
Free trial:	Yes
Starting price:	From $25 per user/month
Top features:	AI-powered insights, advanced automation, extensive integrations, and customizable dashboards

Try Salesforce

Salesforce is perfect for growing businesses and large enterprises that need to manage sales, marketing, and customer service effectively at scale.

Capabilities. Thanks to its extensive automation support, customizable dashboards, and AI tools, Salesforce offers an all-in-one solution for CRM needs. It also integrates with many third-party marketing, customer support, accounting, eCommerce, and social media apps.

Ease of use. It’s very feature-rich, so it can be a little more challenging for a beginner to use Salesforce. However, the platform is relatively intuitive, and the customer support is excellent, with vast online documentation, a community forum, and an expert service team.

2. Monday CRM – improve customer relationships with easy CRM customizations

Best for:	Small to medium-sized businesses needing a user-friendly CRM
Free trial:	Yes
Starting price:	From $15 per user/month
Top features:	Visual sales pipeline, workflow automation, team collaboration tools, and customizable interface

Try Monday CRM

Monday CRM has custom workflows and a user-first design ideally suited to small and mid-sized businesses.

Capabilities. It allows you to automate repetitive tasks, create customizable sales pipelines, generate AI-generated emails, sort lead data, and track marketing performance. It also supports many apps commonly used by smaller businesses, including Google Workspace, Slack, and Trello.

Ease of use. Monday is simple to use, with intuitive navigation and drag-and-drop customization features. Its customer service is also excellent, with an insightful help center and helpful live chat support team for fast responses.

3. Pipedrive – use powerful automation and tracking to increase sales

Best for:	Sales-focused teams and SMBs
Free trial:	Yes
Starting price:	From $24 per user/month
Top features:	Deal tracking, sales automation, email sync, and AI-powered sales assistant

Try Pipedrive

Pipedrive prioritizes deal tracking and sales automation – a perfect choice for sales-focused businesses and SMBs.

Capabilities. It features all-in-one sales software, email marketing tools, and a project management system tailored to customer-based projects. It integrates with 500+ tools, supports visitor tracking, and uses AI technology to optimize conversions and deliver valuable insights.

Ease of use. Using Pipedrive is straightforward, with customizable workflows, automation, and an intuitive platform. Customer support is also helpful, with live chat, email, a knowledge base, and plenty of community resources to resolve issues quickly.

CRM vs ERP: understanding key differences

CRM and ERP serve different business functions. A CRM is for managing customer relationships, while an ERP is for streamlining internal business operations.

CRM and ERP integration

A CRM gathers customer data from various sources such as emails, calls, texts, social media, and website analytics. It provides a single source of data for sales and marketing teams.

An ERP collects internal operations data from finance, HR, supply chains, and other business departments. This data is then categorized and easily accessible to any employee involved in operations.

Customer relationship management

CRMs manage customer interactions, track leads, and improve retention. It helps you log detailed customer communications for more targeted and data-driven marketing.

ERPs handle overall business operations. Instead of focusing on front-end customer engagement, these systems deal with back-end processes, including inventory levels, supplier transactions, manufacturing schedules, employee payroll, and regulatory compliance.

Sales tracking

CRMs are ideal for tracking sales pipelines, managing follow-ups, and handling purchasing details. Many CRMs also automate outreach and send reminders to the sales team to help close deals.

ERP sales tracking focuses on the financial aspect, including invoicing, supply chain logistics, revenue tracking, and order fulfillment. ERPs use sales data to help manage cash flow, generate accounting reports, and ensure compliance.

Marketing

A CRM automates marketing campaigns, tracks customer engagement, and analyzes strategy success to fine-tune marketing efforts and optimize conversions.

On the other hand, an ERP prioritizes backend operations such as inventory management, production scheduling, and supply chain logistics to ensure products are available when needed.

Analytics and reporting

A CRM offers valuable insights into customer behavior, sales trends, and marketing performance, helping companies build long-lasting customer relationships.

An ERP provides operational efficiency metrics, including financial performance and supply chain intelligence, to enhance business planning and ensure compliance.

How are CRM and ERP similar?

CRM and ERP are similar because the pair shares numerous functions, benefits, and features.

Both software systems centralize data from various sources into a unified platform, ensuring businesses always have access to up-to-date information. With either a CRM or an ERP, data silos are eliminated, allowing for easy cross-department collaboration.

The two also commonly offer automation. CRMs automate customer interactions, lead tracking, and marketing campaigns. ERPs automate financial management, inventory tracking, and supply chain processes. Both reduce manual work and improve efficiency.

Additionally, the pair generate comprehensive reports and provide robust analytics tools. A CRM focuses on customer reporting and analytics, while an ERP delivers valuable financial and operational insights.

Ultimately, CRMs and ERPs both aim to improve business decision-making and efficiency. However, CRMs focus on customer engagement, while ERPs prioritize internal operations. These tools are complementary, and many companies choose to combine the two.

ERP vs CRM: which one is right for your business?

ERPs and CRMs serve different functions. The right choice for your company depends on your business needs.

When to use a CRM

A CRM system handles customer relationships, tracks sales, and automates marketing. It’s best for businesses that focus on lead generation, customer engagement, and retention.

It supports various marketing features, including customer segmentation, campaign automation, lead management, customer personalization, and pipeline tracking.

CRMs are popular in retail, eCommerce, service, and B2B companies. It’s ideal for strengthening customer relationships, driving sales, and boosting marketing efficiency.

When to use an ERP

ERP systems manage business operations, inventory, supply chains, and financials. They’re ideal for companies that need centralized control over processes, resources, and reporting.

It offers great operational support, streamlining workflows, improving resource allocation, and reducing unnecessary expenses.

Industries such as manufacturing, retail, logistics, wholesale, and large enterprises commonly use ERPs. It’s a great option for optimizing business processes, improving efficiency, and enhancing financial management.

Making the right choice

Both ERPs and CRMs are beneficial for your business when needed. But deciding which is best is tricky. Ask yourself:

• Do you need more customers? If you need more customers, a CRM can help you build more meaningful and strong customer relationships. If you already have many customers, an ERP can assist you in optimizing your current operations to improve your margins.
• What does your business depend on? When your business depends on a steady stream of customers, a CRM can help grow your customer base. However, if your focus is on allocating resources better, an ERP is the better choice.
• What resources do you have? A CRM is likely needed if you have a large amount of customer data. An ERP is useful when you have a lot of data from various departments (accounting, inventory, and supply chain).

You may need both depending on your business size, goals, and growth strategy.

Final word on ERP vs CRM

ERP and CRM serve different purposes, but both complement each other.

ERPs like MRPeasy manage internal processes, including finance, inventory, and supply chains. In contrast, CRMs, such as Salesforce, focus exclusively on customer relationships, building loyalty, streamlining sales, and automating marketing efforts.

Whether you should use an ERP or CRM depends entirely on your business needs. An ERP is ideal for managing complex internal business operations such as supply chains or accounting, while a CRM is best for growing your customer base.

Additionally, some businesses benefit from using an ERP and CRM together. List your company’s goals, workflow challenges, and existing strategies to evaluate the best choice for you.

Hopefully, this Cybernews guide helps you make an informed decision to choose the perfect system and start managing your business operations even more efficiently.

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