It’s undeniable that CRM and ERP are game-changing software investments. Individually, CRM shines for front-office transparency while ERP opens new insights into back-office operations. Many organizations know that CRM and ERP integrate, but they don’t invest in the crossover.
Why?
While many factors may be involved, one of the most common reasons is because the initial investment of the two systems took more resources than planned, so the integration gets put on the back burner. Although budget is a reasonable concern, the long-term benefits of CRM and ERP integration outweigh the initial investment every time. Shared data between these systems outpaces the capabilities of the systems on their own and creates an unprecedented powerhouse for forecasting, cross-departmental collaboration, quoting, and much more. Increased data visibility and collaboration enable usability that wasn’t possible before, which ends up saving money over time. Don’t believe me? Here are six ways CRM and ERP integration saves money.
https://www.youtube.com/watch?v=hgt6NRKxb5g
1. Fewer ERP Licenses
ERP licenses aren’t cheap. The more users you have, the more
expensive it gets, and that can make a CFO’s eyes bulge out like a
cartoon character. Integrating CRM and ERP gives your CRM users access
to the most pertinent ERP data without having to own an ERP login. Sales
can see crucial accounting insights without leaving the CRM, while the
financial and services departments understand how sales data relates to
quotes, invoices, and inventory in the ERP.
2. Stronger Forecasting
Because data visibility is so much clearer when CRM and ERP
integrate, the forecasting accuracy improves. Accurate forecasting leads
to more precise financial planning, reduced inventory costs, decreased
budget waste, improved gross margin return on investment (GMROI), and
better cash flow optimization – to name a few.
3. Customer Payments Kept in Check
Here’s a fun scenario: A customer contacts their sales rep for help
with an additional project. The sales person, blind to the current
credit history of the customer, obliges, only to find out later that
this customer never paid their previous invoice and owes the company
thousands of dollars. That cringe-worthy situation happens all too often
when departments don’t have the proper front and back office
connections. However, with an integrated CRM and ERP, this problem is
easily avoided. The details of the account (including billing and
payment history) are visible to all parties in one location, so if a
customer falls behind on their bills, the sales rep is aware before
offering additional services.
4. Reduced Training and IT Overhead
Some employees use the CRM and some employees use the ERP. Learning
both costs money. Integrate CRM and ERP to avoid the overhead of
additional systems training. CRM users can continue to work in the
system they understand and ERP users can confidently continue their use
of the ERP. In the meantime, IT spends less time maintaining both
systems and making sure duplicate data is cleared out because users
aren’t entering the same data into each system separately. Instead, they
enter it once into their preferred system and it syncs right into the
other. Eureka!
5. Better Inventory Management
A company looking to replenish its inventory must factor in order
history, contractual agreements, and quotes to get the clearest estimate
of future demand. However, that information is spread out between the
ERP and CRM systems. Without integration, the insights are insufficient
and can even be contradictory, which can lead to ordering too little or
too much of what is really needed. Money is saved through proper
inventory management, so when those overages or scarcities happen, it’s a
hit to the company wallet.
6. Higher Customer Retention
Everyone knows it’s less expensive to retain and upsell to a current
customer than it is to acquire a new one. A company must provide
excellent customer service, be proactive in their marketing strategies,
and truly understand the deeper needs of each client to do this
successfully. When people talk about CRM ERP integration, the benefits
of a 360-degree customer view is always a highlight. The CRM provides
personal information about the customer, which is a great start. But
combine that with the financial insights on their annual spend with your
company, their most recent purchases, their credit limit, and their
outstanding invoices and you create a complete representation of that
individual or business. The 360-degree picture helps you understand the
customer’s loyalty, preferences, and profitability potential faster so
marketing can send the right messages, sales can seek out more tailored
upsell opportunities, and services can stay ahead of the game on
customer issues.