CRM vs ERP: Which One Does Your SMB Need?

The Alphabet Soup of Business Software

CRM and ERP are thrown around constantly, but what do they actually do? And which does your business need?

CRM: Customer Relationship Management

A CRM tracks everything related to your customers and sales process:

• Contact information and history
• Sales pipeline and deals
• Communication logs
• Marketing campaign tracking
• Customer service interactions

Popular options: HubSpot, Salesforce, Pipedrive, Close

ERP: Enterprise Resource Planning

An ERP manages your internal operations and resources:

• Inventory and supply chain
• Accounting and finance
• Human resources
• Manufacturing and production
• Order management

Popular options: NetSuite, SAP, Odoo, Acumatica

Which Do You Need?

You need a CRM if:

• You're losing track of leads and follow-ups
• Sales team needs visibility into deals
• Customer data is scattered across spreadsheets
• You want to automate marketing and sales

You need an ERP if:

• You manage physical inventory
• You have complex financial reporting needs
• Multiple departments need shared data
• You're outgrowing QuickBooks

For Most SMBs

Start with a CRM. It's more immediately impactful for growth. Add ERP capabilities (or a full ERP) when operational complexity demands it—usually when you're managing significant inventory or complex manufacturing.