What is CRM (Customer Relationship Management)?
CRM is software that manages a company's interactions with prospects and customers across sales, marketing, and service.
Definition
Customer relationship management (CRM) is a category of software used to manage and improve an organization's relationships with prospects and customers throughout the lifecycle, from marketing and lead generation through sales and post-sale service. A CRM system centralizes contact and account records, tracks leads and opportunities, manages the sales pipeline, logs communications, and supports marketing campaigns and customer service cases. CRM can be a standalone application or a module within a broader ERP or business suite. When integrated with ERP, CRM connects the front-office relationship and order capture to back-office processes like fulfillment, invoicing, and finance, giving a fuller view of the customer. Leading CRM and ERP vendors increasingly offer combined or tightly integrated suites to unify these front- and back-office functions.
How CRM Works in ERP
Within an ERP context, CRM functionality manages the pre-sale and service activities, capturing leads, opportunities, quotes, and cases, while the ERP handles orders, inventory, billing, and accounting. Integration means a closed-won opportunity can flow into a sales order without re-keying, and customer financial history is visible to sales and service teams. Some ERP platforms include native CRM modules, while others integrate with dedicated CRM systems.
ERP Vendors with Strong CRM
Frequently Asked Questions
What is the difference between CRM and ERP?
CRM manages front-office customer relationships, sales, marketing, and service, while ERP manages back-office operations like finance, inventory, and order fulfillment. Many platforms integrate the two so customer-facing activity flows seamlessly into operational and financial processes.
Does ERP software include CRM?
Some ERP suites include native CRM modules covering leads, opportunities, and cases, while others integrate with dedicated CRM products. The right choice depends on how advanced your sales and marketing needs are versus the convenience of a single integrated platform.