How Can We Integrate ERP and CRM?

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Gaining great visibility and streamlining all processes are the major goals of digital transformation for firms. Because of this, they frequently acquire two systems—a Client Relationship Management (CRM) system and an Enterprise Resource Planning (ERP) system—to ensure that company procedure are carried out effectively.

A CRM system manages crucial client data and enriches it as a result of communications with marketing and customer support. This aids in customer and prospect understanding, relationship management, and product up- and cross-selling.

An ERP system often handles the management of customer information necessary after receiving orders. This can include information on previous purchases, billing and shipping information, accounting, financial, and supply chain management information.

Enterprise resource planning systems and client relationship management systems each individually provide significant advantages to enterprises. Getting a strong integration solution such as Dynamics 365 by Microsoft enables connectivity between the two, ultimately giving more benefits. 

Main Challenges of CRM and ERP System Integration

The planning and management of this labor-intensive undertaking are frequently the first difficulties firms encounter when integrating ERP and CRM systems. The parties need to be clear on what kind of integration they want to pursue and whether they should go it alone or work with a third-party Software as a Service (SaaS) ERP CRM vendor.

Second, firms must guarantee data quality before integrating CRM and ERP systems. This entails following the guidelines of data integration architecture by standardizing the data format and cleaning up the data present in both systems.

Last but not least, companies frequently underestimate the volume and variety of data they must incorporate into a successful unified system. The primary CRM ERP integration architectural points that a company should consider synchronizing are highlighted below.

Benefits of ERP and CRM integration

Software solutions for customer relationship management and enterprise resource planning work together to support your company’s objectives. The research and development team, management, HR, and business culture benefit from combining ERP and CRM through communication, planning, and product information.

  • Contact and Account

While the ERP provides customer and account information connected to billing, shipping, and payment, the CRM has lead and customer contact information related to sales orders. You can maintain consistency and accuracy in your contact and account information by synchronizing these points.

  • Communication

When information silos are eliminated, organizations perform at their best. The CRM platform’s customer data is a treasure trove of knowledge that supports much of the company’s back end.

Utilize data from client reviews, purchase trends, and other sources to determine how well your business is doing in terms of production, customer service, and other areas. By making CRM data accessible to the rest of the company, you can encourage transparency and encourage cross-functional employee problem-solving.

  • Improve Strategic Decisions and React Quickly to Changes

You may learn a lot about the requirements of your present client stock from your ERP. However, it is unable to predict forthcoming trends or market demands. You will only be able to respond when it’s too late if you simply rely on ERP data to determine your strategic course of action or future direction.

You must combine CRM data, such as market knowledge and forecasting, into your decision-making processes in order to quickly identify and respond to changing market needs and make better strategic decisions.

  • A 360-degree View of Your Customers

A comprehensive picture of your consumers is one of the main benefits of ERP and CRM integration. These solutions offer total visibility into your customer’s purchasing patterns, purchase history, and general needs, from sales and support to finance and accounting.

This not only gives you a greater understanding of your clientele but also enables you to forge enduring connections and identify areas with room for expansion in the future.

Steps to Integrate ERP and CRM in Dynamics 365

Every organization has used separate ERP and CRM systems for a long time, but as companies seek to increase efficiency, integrating the two can help them fully use each system’s unique advantages. Information may be easily accessible across the organization by integrating Dynamics 365 for Finance and Operations and Dynamics 365 Customer Engagement. To complete the process, you can follow the steps below:

  • Using the data integrator tool in Dynamics 365
  • Data integration project
  • Create a connection and connection set

Bottom line

As a result, a feedback loop between CRM and ERP is necessary. You should use that information to inform back-end business operations when you are aware of what your consumers are doing—what they are purchasing, in what quantities, how they feel about the product, and other factors.

Your business performance can be enhanced, and customer loyalty can increase when your ERP and CRM solutions are connected.

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