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ERP & CRM Explained! [Incl. Graphics]

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Reading time: 13 Minutes | Last updated on 1. October 2025

ERP & CRM form the basis of a digitalised company. In this article, you will learn everything about these two systems, factors to consider when introducing them, and how they can benefit your company.

ERP & CRM form the basis of a digitalised company. In this article, you will learn what is behind these terms, which factors need to be taken into account when introducing them, and how they can help your company move forward.

Key Takeaways 

Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems help companies manage and optimise their processes. 

ERP software helps organise processes and integrate them into a single system. Meanwhile, the application possibilities are manifold - sales, purchasing, production, human resources and inventory management are just some of the numerous functional areas of an ERP system. 

On the other hand, CRM software focuses primarily on sales, marketing and customer service. Here, the software tracks and analyses important customer information so that companies can reach their customers in an effective way.

I would like to refer you to our comprehensive guide on CRM and Marketing Automation.

Whether you should rely on ERP or CRM depends on several individual factors and should be thoroughly thought through before making a decision. Costs and the required effort also play an important role in the decision-making process. The following applies to both systems: a company introduction requires time, intensive training and ongoing adjustments. However, once these hurdles have been overcome, your company will benefit from numerous advantages.

Before implementing any system, a proper ERP and/or CRM strategy is necessary to maximize the software's potential.

The greatest possible benefit is achieved by combining both systems. Both tools complement each other, ensuring seamless information flow and transparent workflows. The result is improved customer relations, more efficient work processes, increased sales opportunities at lower costs and optimised collaboration between different departments. 

Whether you choose CRM, ERP or a combination of both, your business will surely benefit in the long run. Implementing such a system is an important milestone in the digitalisation of your company and a big step forward.

What is ERP & CRM  

Before we dive deeper into the topic and look at the differences, similarities and advantages of integrating ERP & CRM, we need to understand a few essential basics. Let's start with the definition of both terms.

What is an ERP system?

ERP (Enterprise Resource Planning) systems are software solutions that help companies to control, manage and optimise business processes. They are based on a central database and integrate various business areas such as procurement, sales, warehouse management or accounting. This means that important areas and processes can be managed centrally throughout the entire company.

kkvision-ERP-System

What is a CRM system?

CRM (Customer Relationship Management) systems digitally map the complete sales and marketing structure of a company. From initial contact and sales to contract management, customer care and support. They make it possible to store important information such as contact data, call notes and purchase information in a centralised way and to process it across departments. Therefore, they form the basis for centralisation, measurability and optimisation of sales processes as well as for sales automation.

kkvision-CRM-System

Implementing ERP for Centralised Corporate Management 

ERP software systems are designed to integrate all facets of a company. ERP can be adapted to the needs of a company and is primarily used to control, manage and optimise internal business processes. 

The possible applications are manifold. Among other things, ERP is used to manage, control and analyse: 

  • Sales
  • Purchasing 
  • Production 
  • Delivery 
  • Inventory Management 
  • Personnel 
  • Accounting & Controlling 
  • Customer Relations  

ERP tools can be complex or simple, depending on the requirements. As you can see in the list, sub-areas of CRM can also be covered. But we will talk about this later.

Advantages of ERP 

A properly implemented system promotes communication and collaboration between individual departments and makes it easier to work towards common goals. This, in turn, can help identify the needs and goals of your customers. Data can be shared, and opportunities for cross-functional collaboration can be identified. As a result, your company can optimise its processes and boost productivity.

Companies that master the physical and digital worlds at the same time will emerge as winners from this period of disruption.

Jim Hagemann Snabe (Former SAP CEO)

Taking sales and customer management to the next level with CRM 

CRM is a software system that stores and analyses customer data. It helps companies to identify their customers' needs and goals and track all interactions with them in the company.

Customer Relationship Management (CRM) is limited to sales, marketing, and customer management, unlike ERP. However, a CRM can handle a company's complete sales process.

The classic functions include: 

  • Email send
  • Appointment setup
  • Appointment follow-up
  • Contract, document, and task management 
  • Workflow automation
  • Customer management
  • Reporting  
  • Increase effectiveness and efficiency in sales

Advantages of CRM

CRM software enables you to better understand your customers by analysing customer interactions with your business. Moreover, you can create personalised marketing campaigns based on customer preferences or previous purchases - this applies to both B2C and B2B marketing automation campaigns.

In particular, the collaboration between sales and marketing is optimized, resulting in increased sales and reduced costs.

CRM is your GPS for navigating your way to success in business development.

Bobby Darnell (Founder of Construction Market Consultants, Inc.)

CRM vs ERP - The Differences

kkvision-ERP-CRM

Basic Functions

The most important difference between ERP and CRM lies in their respective basic functions. While CRM is an instrument for the areas of sales, marketing and customer management, ERP is a complete solution that covers and unites almost all company areas. 


Complexity

If we consider the different basic meanings of the two systems, the next difference quickly becomes apparent. ERP systems are geared to the entire company and are, therefore, much more complex in their range of functions. CRM, on the other hand, is limited to individual areas and can sometimes even be considered part of ERP.


Areas of Application 

Another difference between ERP and CRM is the respective area of application. While the former is geared towards internal business processes, the latter is used to optimise external business processes such as customer communication. 


Goals 

In terms of objectives, both tools often overlap or complement each other. Nevertheless, there is also a serious difference in this point. ERP software primarily serves the goal of cost reduction. This is to be achieved by optimising internal business processes. CRM, on the other hand, is mainly intended to increase turnover. For example, through automated newsletters (e.g. with the help of Pardot).


Costs 

Comparing the costs of CRM and ERP directly is challenging due to numerous factors. One thing is certain: There are enormous price ranges in both areas. From free solutions to several hundred thousand euros. Depending on the provider, the size of the company, the range of functions and the set-up costs.  


Ease of Use

The current CRM systems are usually much more user-friendly than ERP systems. They can be used easily and intuitively after a short training period. ERP tools, on the other hand, are usually much more extensive and programmed more for functionality than for user-friendliness. This usually requires a longer training period.

Do I Need CRM, ERP, or Both?   

The question of whether you need both CRM and ERP, or only one of the two, is not easy to answer. The answer depends on your company and your individual business situation. On what goal you ultimately want to achieve. 

As a specialised CRM agency with plenty of ERP expertise, we are happy to support you in finding the perfect solution to match your goals.


What goal do you want to achieve? 

If your focus is to improve your customer service and increase sales through optimised sales processes, then a CRM will be the appropriate choice. However, if you want to make your internal business processes more efficient and manage them, then an ERP system will be the tool to go with.

Investing in one of the two systems makes particular sense if your company is on a growth path. The following is a small example to illustrate this.

For very many companies, Excel spreadsheets are the tool of choice to record customer data, business information and sales. This way is absolutely legitimate, but with increasing problems as it grows.  

For example, over time it becomes more and more difficult to store and maintain information in just one place. The more complex a single table becomes, the more error-prone it will be. Typically, there are also several tables that are used by different employees and teams. This not only creates redundancy but also makes communication and the overview more difficult.  

With the help of an ERP or CRM, however, you can store information centrally in one place. Processes and data can be edited and maintained across departments. Notes can be easily retrieved. Collaboration is strengthened, customer service is optimised and work processes become more efficient. 

Considering Costs

The cost of ERP and CRM varies depending on the needs of your business and the features you want. If you have a small business with only a few employees, the cost is usually less than if you have a large business with hundreds or thousands of employees. 

For smaller businesses, there are affordable options (with limited functionality) that don't require too much customisation or training. However, if your company has many employees and processes, it may be worth paying for more advanced solutions.

How much does a CRM system typically cost? 

CRM systems are complex and multi-layered. Advantage - They can be adapted to individual needs and budgets.

The price depends on several factors: 

  • Provider
  • Number of users
  • Range of functions
  • Number of contacts and amount of data
  • Purchase or rental licenses

The price ranges are very wide, and it is, therefore, difficult to make a general statement. Simple CRM solutions are available as a rental model from low double-digit euro amounts per user per month, while more complex solutions can cost up to €100 and more per user per month. 

The following is an actual breakdown of expenses from HubSpot, the service provider.

Example of CRM costs: HubSpot

The HubSpot Marketing Hub Professional tariff currently costs €740 per month. The price is not based on the number of users but on the number of marketing contacts (as of February 2023).

kk-CRM-Costs

How much does an ERP system cost? 

The costs for an ERP system can also vary. Depending on the size of the company, the license costs between 50 and 100 € per user per month (rental version). 

The cost level is also dependent on several factors:

  • Provider
  • Number of users who need access
  • Level of customisation required
  • Number and scope of functions
  • Purchase or rental licenses

The following is an actual breakdown of expenses from SAP, the service provider.

Example of ERP costs: SAP

The SAP Professional User Cloud licence is currently available for €91 per month per user (as of February 2023).

kkvision-ERP-Costs

Other cost-related factors 

The same applies to both systems - one of the most important factors in pricing is whether you want to buy or rent the software licences. Depending on your needs, the latter is usually the more cost-effective option. The number of users is also decisive in the question of price. 

Moreover, there are costs for implementation, training and, if necessary, external service providers. Regular maintenance and servicing of the systems should also be considered when planning the budget.

Don't let the costs be an issue

It is true that implementing a CRM and/or ERP system can come at a high cost. In the long run, however, investment costs are recovered through improved business processes, increased revenue, and reduced costs.

Set-up & Operation Efforts

The effort required to implement a new ERP or CRM system must also be taken into account. Projects in both disciplines can basically be divided into four phases: 

  1. Preparation
  2. Implementation
  3. Commissioning
  4. Maintenance
Each of these phases can last from several weeks to months, depending on individual requirements. Furthermore, training and extensive testing are necessary in all phases in order to adapt the software to the company's requirements in the best possible way. 

Before the implementation starts, it is necessary to plan the project thoroughly, analyse existing processes and create a basic concept. Then, the ERP or CRM solution is technically implemented and installed. Before the respective system can be used on a large scale, it must be sufficiently tested and optimised in practice,  

Last but not least is the large-scale commissioning and ongoing care and maintenance. Especially first-time users have to be intensively trained and familiarised with the new tool during this phase.  

All this requires a considerable amount of time and effort. The entire process is much faster, more efficient and usually more cost-effective if you get external support from experts. Experienced service providers know the typical problems and initial hurdles and can contribute with their experience to make the implementation as smooth as possible.

 

Unsure which solution is right for your company?

We offer free online consultations to help find the best solution for your company.

Quick Summary

A CRM system helps you improve customer service, sales and marketing processes. The right information is provided at the appropriate time, which significantly increases your turnover.

ERP systems, on the other hand, help to optimise internal business processes and to manage and design operations more efficiently. They therefore relieve the burden on company management and save costs in the long term.

You see - both tools benefit your company. If you want to improve customer service and optimise your internal business processes at the same time, the integration of ERP and CRM will offer some considerable advantages.

Why You Should Combine ERP & CRM  

kkvision-ERP-CRM-Combined

You get the greatest possible benefit for your company if you link the two systems. Besides the automated communication of the systems (saves time, reduces errors and keeps data up to date), the integration brings the following advantages:

  • All customer interactions can be managed and viewed in one place.
  • This massively improves customer communication and service.
  • The complete customer journey can be displayed seamlessly, the customer experience is greatly improved, and both marketing and sales are significantly more profitable.
  • Collaboration between departments becomes easier, more transparent and more efficient.
  • Data quality increases dramatically, decisions can be made more accurately.
  • Business processes can be analysed and optimised down to the smallest detail. 

A combination of the two tools offers you maximum added value. So, if you have the opportunity and the use of both tools makes sense for your company, you should definitely aim for a linked solution.

 

Conclusion

Both ERP and CRM systems are powerful tools in their own right. Which of these two tools makes sense for your company depends on your individual requirements. To get the most benefit, it's best to use both tools together.

The interaction of both platforms makes it possible to design business processes more efficiently and successfully. By linking them, you can better control, plan and optimise business processes.  

In addition, communication and cooperation within the company is improved. This leads to higher productivity and better decisions. Customer loyalty is also strengthened by linking ERP and CRM, as the data from both systems can be used to create individual offers and solutions. 

So, all in all, the integration of ERP and CRM offers a multitude of benefits. If you need support with the implementation, please feel free to contact us. We have many years of experience and are here to provide advice and practical help.

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About the author

Katharina Krug

CEO & Founder

As the Founder and Managing Director, Katharina is largely responsible for the fact that kkvision can write so many success stories with its customers. After studying Media Informatics, she started out as an entrepreneur in the field of CRM and Marketing Automation and built up a real brand in the industry with kkvision.
Go to Email Katharina Krug: kkrug@kkvision.de Go to All articles from Katharina Krug.

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