5 Least Known Facts About ERP And CRM Integration That You Need To Know

ERP related statistics

• ERP market is still in a phrase of rapid growth and is expected to exceed the market size of $49.5 billion by 2025.
• 53% of the business operators believe that ERP is an investment priority.
• 67% of the global ERP implementations are bound to be successful.
• 95% of businesses have reported to witness process improvement upon ERP implementation.
• 64% of the global ERP users use SaaS, 21% use cloud ERP and 15% use on-premises ERP systems.

CRM related statistics

• CRM market size is expected to reach $113.5 billion within 2027.
• 91% of the companies has at least one employee to use CRM technology.
• 97% of the sales professionals believe CRM systems are important for businesses.
• 32% businesses of service industry and 13% businesses of IT industry are looking forward to implementing CRM technology.
• Usage of cloud-based CRM has increased by 84% from 2010 to 2020.

The above statistics signify that both ERP and CRM technologies have been witnessing a good amount of growth in recent competitive market scenario. Hence, ERP and CRM integration can provide you with an upper hand in the course of your business.

5 facts about ERP and CRM integration

1. You will be entitled to seamless CXM

Most of the business operators seem to know that ERP and CRM integration enhances the entire customer relationship management process. The integration helps in smooth flow of customer data between the ERP and CRM system, which results in faster resolve of customer queries and issues.

However, many of us are unaware of the fact that ERP and CRM integration also promotes better CXM, Customer Experience Management as well. CXM or CEM is a system associated with marketing strategies as well as technologies which focus on customer engagement, experience and satisfaction. In simpler words, CXM establishes a wider viewpoint of CRM.

Enhancement of CXM stands for a 360 degree customer view with more customer engagement than you have ever experienced. When you opt for ERP and CRM integration, it will provide you with a chance of employing larger CXM goal as the unified platform becomes the appropriate technology to support the same.

The seamless data integrity is the primary factor that supports an enhanced CXM. It also allows the company to eliminate micro-management and establish a better and smoother maintenance process of customer experience.

2. You will gain 360 degree sales and marketing assistance

ERP and CRM integration stands for integrating sales and marketing approach with back-office processes. Marketing and sales strategies can earn their full potential only when those are backed up by the right back-office processes. ERP and CRM integration not only enhances data flow between two of the systems but also integrates back-office with customer management.

Additionally, if your company is looking forward to offering more customized and personalized services to your customer base, then you can employ the sales and marketing department to gather information on customer preferences. These data can be conveyed easily to the appropriate department without facing many difficulties. Only ERP and CRM integration can power a company to work so smoothly. Hence, you get 360 degree sales and marketing assistance without having to invest much of your time.

3. You can fuel up your profit by gaining comprehensive insights

ERP and CRM integration allows your business to have comprehensive insights via the automated processes and smooth flow of information. Comprehensive insights regarding the industry trends, customer preferences, and customer engagement can help you in determining better strategies, which can assist you in gaining more profit than ever.

4. You get a chance of working with the most advanced technologies

ERP and CRM integrated systems are one of the most advanced technologies and are often powered by AI (Artificial Intelligence) and ML (Machine Language). Working with these technologies mean you get to enjoy competitive advantages of accurate market predictions and decision marketing automation.

5. You can establish after-sale strategies

Right insights and error-free implementation of accurate strategies can allow you to gain a ton of benefits and profits when a product goes live in the market. But what after the sale? What are the next steps and what are the appropriate approaches that will help you in retaining your customers?

ERP and CRM integration has the answers. While ERP systems help in determining new ideas for new products, CRM systems record customer reactions and preferences and offers an insight regarding the steps that can be taken to retain as many customers as possible. The companies can also arrange alluring offers like customer loyalty points, customer forums, special discounts and so on. This is certainly beneficial for the companies which look forward to establishing a huge and loyal customer base for a long-term relationship.  

What can be gained by ERP and CRM integration

Streamlined Data Flow

One of the primary benefits of ERP and CRM integration is the streamlined flow of data between the two systems. Instead of manually entering information into both ERP and CRM systems, data is shared automatically, reducing the risk of errors and ensuring that customer and business data remains consistent and up-to-date. For example, when a sales order is created in the CRM, the ERP system can automatically update inventory levels and generate an invoice, eliminating redundant data entry.

Comprehensive Customer Insights

Integrating CRM with ERP provides a 360-degree view of customer data. This comprehensive view includes not only contact information but also a customer's purchase history, preferences, outstanding invoices, and payment history. This rich dataset empowers businesses to tailor their services and marketing efforts more effectively. Sales and customer service teams can access this information to provide personalized support and identify upsell and cross-sell opportunities.

Enhanced Sales and Service

Sales teams can significantly benefit from ERP and CRM integration. With access to a complete customer profile, including past orders and interactions, sales reps can engage customers more effectively. They can identify opportunities to upsell or cross-sell products and services, improving revenue and customer satisfaction.

Furthermore, customer service teams gain access to essential order and billing information. When customers inquire about their orders or billing status, support agents can quickly access the information they need, leading to faster issue resolution and enhanced customer experience.

Efficient Order Processing

Integration between ERP and CRM streamlines the entire order-to-cash process. When a sales order is created in the CRM, the integration ensures that the order details are seamlessly transferred to the ERP system. This reduces order fulfillment times, minimizes errors, and ensures accurate billing and revenue recognition. Efficient order processing contributes to improved customer satisfaction and better financial management.

Inventory Management

Accurate inventory management is crucial for businesses that deal with physical products. An ERP and CRM integration enables businesses to maintain optimal inventory levels based on customer demand. For instance, when a sales order is placed in the CRM system, it can trigger automatic updates in the ERP system to adjust inventory levels. This automation prevents overstocking or understocking and ensures that products are available when customers need them, contributing to customer satisfaction and cost savings.

Financial Management

Financial data is a critical component of both ERP and CRM systems. Integrating these systems allows for a more complete view of customer financial information. For instance, when a sale is made in the CRM, it can trigger the creation of invoices in the ERP system. This integrated approach helps businesses assess credit risk, manage collections more effectively, and gain better insights into customer payment behavior.

Data Security

While the benefits of ERP and CRM integration are substantial, it's essential to prioritize data security. The integrated system should implement robust access controls and encryption to safeguard sensitive customer and financial data. Compliance with data protection regulations, such as GDPR or HIPAA, if applicable, should be a priority. Regular security audits and updates should also be part of the integration strategy to ensure ongoing protection.

Scalability

The needs of a business can change over time, and the ERP and CRM integration should be scalable to accommodate growth. Whether your business expands its product offerings, customer base, or geographic reach, the integrated system should adapt to handle increased data and transactions. A well-designed integration can grow with your business, preventing the need for costly re-implementations in the future.

Vendor Support and Integration Tools

Many ERP and CRM software vendors recognize the importance of integration. They often provide pre-built integration solutions or Application Programming Interfaces (APIs) to simplify the integration process. Leveraging these tools can save time and resources during the integration project. Additionally, third-party integration tools and consultancies specializing in ERP and CRM integration can offer valuable expertise and assistance.

Challenges in ERP and CRM integration

While ERP and CRM integration offers numerous advantages, it's not without its challenges. Here are some key challenges to be aware of:

Complexity

ERP and CRM systems are complex in their own right. Integrating them can be a complex and time-consuming process, often requiring the expertise of IT professionals or consultants.

Cost

Integration projects can incur significant costs, including software licenses, development, and ongoing maintenance. It's important to carefully budget and plan for these expenses.

Data Mapping and Transformation

ERP and CRM systems often use different data structures and terminologies. Mapping and transforming data from one system to another can be a complex task that requires careful consideration and thorough testing.

Customization

Each business has unique processes and requirements. Customizing ERP and CRM systems for integration may be necessary, which can add complexity and time to the project.

Change Management

Integrating systems often leads to changes in workflows and processes. Employees may need training and support to adapt to the new way of working.

System Updates

As both ERP and CRM systems evolve, it's essential to ensure that the integration remains compatible with the latest updates. This requires ongoing maintenance and possibly additional development work.

Data Security and Privacy

Integrating two systems increases the risk of data breaches. Security measures must be in place to protect sensitive customer and financial data.

Compatibility

Ensuring that the ERP and CRM systems are compatible, and that integration is possible can be a challenge. Not all software combinations are equally suitable for integration.

Vendor Dependence

Relying on software vendors for integration tools can lead to vendor lock-in. Businesses should carefully consider the long-term implications of this dependence.

ROI Assessment

It's essential to measure the return on investment (ROI) for the integration project. Determining whether the benefits outweigh the costs and effort is critical for business success.

Key Considerations for Successful ERP and CRM integration

To ensure a successful ERP and CRM integration, consider the following key factors:

1. Clear Objectives

Define clear objectives for the integration project. What specific goals do you aim to achieve, such as improving customer service, increasing sales, or streamlining operations?

2. Stakeholder Involvement

Involve key stakeholders, including business leaders, IT professionals, and end-users, in the planning and decision-making process.

3. Data Mapping and Transformation

Pay close attention to data mapping and transformation. Ensure that data is accurately and consistently transferred between systems.

4. Customization and Configuration

Customize and configure your ERP and CRM systems to meet your specific business needs. Avoid unnecessary complexity but address critical requirements.

5. Change Management

Implement a change management strategy to help employees adapt to the integrated systems. Training and support are essential.

6. Security and Compliance

Prioritize data security and compliance with relevant regulations. Regularly audit and update security measures.

7. Ongoing Maintenance

Plan for ongoing maintenance and updates to keep the integration running smoothly and compatible with system updates.

8. ROI Assessment

Continuously monitor the integration's performance to assess its impact on your business and ensure that it continues to deliver a positive ROI.

Conclusion

ERP and CRM integration is a strategic initiative that can significantly enhance your business's efficiency, customer service, and profitability. It enables the seamless flow of data between internal processes and customer interactions, providing a holistic view of your operations. While there are challenges to overcome, careful planning, expert guidance, and a commitment to data security can lead to a successful integration that empowers your business to thrive in a competitive landscape. For gaining more valuable insights regarding this topic, read our article Understanding The Importance Of CRM And ERP Integration.