CRM vs ERP Software: Which do I need?

Most business owners know they need better systems, but not all understand exactly which ones. With limited budgets and even more limited time, choosing between CRM and ERP software is a decision that will affect your company's efficiency for years to come.

Understanding the basics

ERP software streamlines core business functions by bringing them into a single, centralised system. Its primary purpose is to integrate operations across departments—such as finance, inventory, procurement, and reporting—to improve efficiency, accuracy, and visibility. By reducing manual processes and data silos, ERP helps businesses operate more cohesively and make better-informed decisions.

CRM software, meanwhile, focuses specifically on managing customer relationships, sales pipelines, and marketing initiatives. It helps businesses track customer interactions, manage leads, and nurture client relationships to drive sales growth.

Key distinction: ERPs often include CRM, but not vice versa

One of the most important points to understand is that every business will eventually need an ERP system (once they grow to a certain size), but not all require a separate CRM solution. Why? Because most ERP platforms come with built in CRM functionality that is more than adequate for businesses with straightforward customer management needs.

If your business isn't quite ready for a full ERP implementation but already has an accounting system in place, investing in a dedicated CRM software could be a logical stepping stone in your digital transformation journey. This gives you the customer management capabilities you need now without having to commit to the cost and complexity of a full ERP system.

Try our ERP Cost Calculator quiz to get a better understanding of your investment requirements and get a free ERP investment estimate for your needs.

When to choose each system

Consider an ERP if:

• Your primary focus is streamlining financial operations.
• You need comprehensive inventory management.
• You require integration between accounting, sales, and operations.
• Your customer management needs are relatively straightforward.

Since finance is the foundation of ERP software, users who need financial management, procurement, and sales functionality will find their interfaces highly intuitive. This design concept makes data entry for these kinds of operations simple and easy.

Consider a CRM if:

• Your business strategy heavily revolves around customer relationships.
• You need advanced lead management and sales pipeline tracking.
• Your marketing team requires detailed customer insights.
• You're not yet ready for a full ERP implementation.

CRM systems are best at nurturing customer relationships throughout their entire journey with your business, from prospect to loyal client. A dedicated CRM software might offer advanced features not available in standard ERP solutions, such as advanced lead scoring, detailed interaction tracking, and marketing automation tools.

Mobile capabilities and integrations

ERP software usually offer mobile friendly interfaces, but they don't necessarily need complex mobile functionality since most operations are performed on desktop computers.

CRM software tend to invest more heavily in their mobile technology, ensuring their apps provide comprehensive functionality for sales teams working in the field.

When it comes to integrations, CRMs typically connect with customer support systems, marketing platforms, social media tools, and other third party applications that enhance customer relationship management.

ERPs will commonly integrate with CRMs, but they're more focused on connections with operational tools such as warehouse management systems, as well as integrating with customer and supplier networks through EDI.

Why integration matters

It’s common for established businesses to use both an ERP and a CRM system—each serving distinct but complementary roles. To get the most value, integration between the two is essential. Customer data shared across both systems must be synchronised to ensure that any changes made in one system (for example, by the finance team in the ERP) are immediately visible to others (such as the sales team using the CRM).

This synchronisation prevents data silos, eliminates double entry, and ensures all departments are working with the same up to date information.

HARMONiQ: When you need both ERP and CRM capabilities

For many small to medium sized businesses, HARMONiQ ERP provides the perfect balance, offering robust ERP functionality with built in CRM capabilities. As a flexible and scalable solution developed by Micronet, one of Australia's leading software providers, HARMONiQ enables seamless data integration across various departments.

What makes HARMONiQ particularly valuable is its integration capabilities. For businesses that require more advanced CRM features, HARMONiQ offers seamless integration with HubSpot, combining the financial strength of an ERP with the customer relationship capabilities of a dedicated CRM system.

Making the right choice for your business

Choosing between ERP and CRM software comes down to understanding your business priorities:

• If you're focused on streamlining operations, financial management, and creating a central database for your business processes, an ERP like HARMONiQ should be your first choice.
• If your immediate concerns revolve around improving sales processes, customer retention, and marketing efforts, a dedicated CRM might be your starting point.
• For businesses that need both robust financial management and advanced customer relationship capabilities, an integrated solution like HARMONiQ with HubSpot integration provides the best of both worlds.

Next steps

As New Zealand's approved agents for HARMONiQ, Logiq Group is here to provide ongoing support to help your business grow and make the most of your software investment.

Download our free ERP software white paper and learn more about our services, or contact us for a no-obligation discussion.