ERP vs. CRM: What’s the Difference, and Which One Does Your Business Need?

Maintaining good customer relationships is the pillar of any successful business. Still, a few decades ago, the process of collecting, tracking, and managing client data within a company was fragmented and a lot more time-consuming. Companies would keep details about their customers in spreadsheets, Rolodexes, and filing cabinets.  These methods were imperfect in so many ways - they involved a lot of manual work and often prevented proper information distribution across different departments. Many business opportunities were missed prior to the introduction of CRM.  What is CRM software?  Short for customer relationship management, a CRM system is a piece of software businesses use to store information about their customers, manage interactions, and automate a number of processes related to a client’s life cycle through the company’s marketing and sales funnels. Given that it helps nurture customer loyalty, turning it into revenue, a reliable CRM system is a vital tool for almost any company, regardless of what products or services it offers.  Used by marketing teams, sales representatives, and call center agents to maintain contact with clients and quickly respond to their needs, a CRM platform enhances a company's interaction with clients. What does a CRM Software Solution Do? The purpose of any CRM program is to allow salespeople and marketers to establish, manage, and analyze relationships with a business’s existing and prospective customers. It simplifies the process of tracking interactions and collecting information. Thanks to these functionalities, marketers and sales representatives always know who these customers are and their history with the company when they get in touch with customers. Not only does this information help personalize the communication, but it also strengthens customer trust and increases the chances of conversion.  CRM services allow businesses to track interactions between the company and its actual and potential customers through a number of channels such as emails, phone calls, social media networks, contact forms, and search engines.  Another great thing about these software solutions is that they can automate repetitive tasks, set reminders, and display alerts if certain matters require immediate attention. Furthermore, some CRM solutions come with analytical capabilities which you can use to track and evaluate the efficiency of different functions or identify sales patterns. For example, let's say you run a real estate brokerage. You can use your real estate customer relationship management system to track and manage your leads and listings while getting valuable market insights.  CRM statistics indicate that 91% of US businesses with more than ten employees use some kind of client relationship management software. This piece of information is hardly surprising given how powerful CRM solutions can be. Combined with marketing automation, they provide sales and marketing teams with valuable tools for end-to-end management of sales and marketing funnels, from lead generation and qualification to forecasting and deal closure. Features of CRM Programs Here’s an overview of functionalities typically provided through a CRM platform: Lead management: A CRM software as a service tracks the company’s lead generation efforts, allowing marketing team members to add new leads to the system, either manually or automatically, and to track and analyze data about them. Workflow automation: CRM platforms help companies focus on more creative tasks with higher importance levels by optimizing repetitive processes and streamlining mundane workloads. Marketing automation: Some client relationship management systems offer marketing automation functionalities for certain tedious tasks. For example, you can set up your CRM to automatically send customers marketing emails or publish social media posts at chosen times. The goal here is to make sure that sales leads are kept engaged so they can be converted to paying customers.  Sales automation: Similar to marketing automation features, most CRMs come with marketing automation capabilities. Business owners can use these to track client interactions and automate certain elements of the sales cycle that make it easier to follow leads and attract new customers. Analytics: Most CRM business solutions also offer built-in analytics tools that provide insights and help increase customer satisfaction rates. Marketing teams can put this data to good use while creating targeted campaigns. To top it off, analytics features help track attribution and offer valuable information about the overall quality of the customer experience. Personalized customer experiences: Another way to make the most of CRM data is to use it to create individualized and consistent experiences for your prospective customers across different marketing channels. Not only do personalized customer experiences help boost brand awareness, but they also increase conversions. Artificial intelligence: Certain CRM solutions come with built-in AI capabilities that automatically recognize patterns, which lead to successful sales. Ultimately, AI can help any business build more accurate and efficient strategies for future marketing campaigns. Benefits of CRM Software Solutions  There are multiple advantages of using CRM solutions, whether you run a small business or a large enterprise. The benefits of customer relationship programs are available to marketing teams, customer care specialists, and anyone in the company who comes in contact with clients.  Organization Perhaps the most significant advantage of a CRM tool is the organizational capability that it provides. A contact management software helps centralize your client data so that anyone who’s part of your company can find all the information they need in one place. As you transition to a CRM system, you’ll be able to enter basic contact information such as your clients’ phone numbers and addresses. Once your software solution is up and running, you’ll be able to follow, track, and analyze everything from basic information to advanced data about each customer.  In addition to your organization, your clients also benefit from a solid information management system because gaining a better understanding of customers enables you to offer a better service. Task Tracking Another reason why businesses of almost all types and sizes need CRM systems is the program’s ability to integrate with your company’s workflow. This saves lots of time you’d otherwise spend on daily tasks. Automation can significantly increase the overall customer engagement level as it provides consistency. In fact, consistency is one of the underdog benefits of a CRM tool - when clients (or prospective clients) get mixed messages, they can grow confused instead of excited about your offerings. Additional Sales Opportunities Why should you stop at 100 or 1,000 customers? Although business owners rarely have a finite number of customers as their goal, many companies often struggle to come up with good ways to generate leads and grow their customer base. A CRM program can help you with that. These software solutions track purchasing patterns and can provide valuable insight into market trends. By learning more about the people who are already your customers, you’ll have enough information to create micro-targeted strategies and encourage more conversions at specific times.  Sales Management By now, you’re probably aware that a customer tracking software solution can make the task of managing your client base a lot less complicated. But did you know that a good CRM program can also track sales progress across your whole organization? Once again, these advantages of CRM solutions are available for companies of all sizes and structure types.  If you run a one-person shop, you’ll get the assistance you need for lead tracking and follow-ups. If your company has a large sales team, all representatives will be assigned new sets of leads, and their journey will be tracked starting from that point. That way, not only will you receive insights on how and when to act on sales trends, but you’ll also get an opportunity to track the progress and performance of your entire sales team. Personalized Communication Finding a way to use your sales resources more efficiently with the help of CRM applications is an excellent way to make your business more successful. However, this isn’t where your efforts should stop. CRM tools also provide personalization features such as the ability to nurture campaigns based on industry or to address customers by their first name. In other words, all the information stored in your database can be put to good use to build more profound client relationships through personalized communication. Increased Retention Another way a customer relationship management software solution can increase sales is by helping you identify your highest revenue-generating and most engaged clients. For example, you use your CRM to determine a subset of customers who open all of their emails or attend webinars.  A CRM can also improve retention rates among your existing customers. Thanks to the program’s ability to aggregate customer behavior, you’ll have a chance to spot different patterns, such as when a client is about to churn. Collecting data and gaining insights about client behavior can prove invaluable when it comes to creating a strategy on how to retain at-risk customers.  On-Premise vs. Cloud-Based CRM Finally, let’s take a moment to discuss different types of CRM solutions. Depending on your organization’s objectives, you may find on-premise solutions more fitting or lean towards the advantages of cloud CRM deployment. The most apparent difference between the two options is where the information is stored. With the on-premise solution, the software is located on your company’s servers, so this is a better choice for organizations with very strict security policies. The downside of an on-premise CRM is that the implementation can take a long time. There’s also the requirement to invest in suitable IT infrastructure. On the other hand, if you go for the cloud solution, your data will be kept on the software provider’s remote servers. Accessible via an internet browser of your choice, the service doesn’t require any type of software installation. Additionally, if you decide to go with the in-house option, you’ll need to purchase a license beforehand and maintain the system on your own. Subscribing for a cloud-based solution, however, means choosing the pay-as-you-go approach and letting someone else take care of the CRM application’s flawless operation and data security. Cloud CRM software solutions are much more popular these days than their on-premise counterparts. There are several reasons that can explain this trend - a cloud-based option is a good choice for business owners who want to have their data accessible at all times and value the ability to scale the service up and down with ease. Furthermore, choosing a cloud CRM is a no-brainer for smaller-sized companies as it allows them to be productive and enjoy all the benefits of CRM technology without the need to strain their budget. 

Buying a house is one of the turning points in anyone’s life and certainly one of the biggest purchases they’ll ever make. And as much as it’s fulfilling, finding a perfect residential property can be extremely stressful, especially if you don’t know what your options are.  Selecting the right mortgage program is one of the crucial steps in this process, which is why we decided to let you know what types of mortgage loans exist, how they work, and what their key benefits are to help you make a smart decision. Different Types of Mortgage Loans The national mortgage debt keeps on pilling up, and since the pandemic, it has been on a constant rise. Statistics have shown that by April 2022, mortgage debt in the US had surpassed $11.18 trillion. These numbers prove that we must take things seriously and carefully explore all the possibilities. If you’re a first-time home buyer, you probably don’t even know where to start looking and what to expect. So, let’s dive right into it. These are the most common types of mortgage loans.  Conventional vs. Non-Conventional Loans All mortgage loans can be split into two main categories: conventional and non-conventional loans. Conventional Loans Non-Conventional loans Conforming conventional loans Non-conforming conventional loans Fixed-rate mortgages/ Adjustable-rate mortgages Portfolio loans FHA loans VA loans USDA loans HUD Section 184 loans A conventional loan is any mortgage that has been issued by a private mortgage lender and isn’t backed up by the federal government. These loans follow the guidelines based on the set of standards set by Fannie Mae and Freddie Mac, the federally backed home mortgage companies created by the US Congress. A conventional loan is the most popular type of mortgage loan in the US for those borrowers who are able to qualify for it. Alternatively, non-conventional loan offers are tailored for borrowers with poor credit scores who can’t otherwise qualify for conventional loans. They also usually require private mortgage insurance, as they are considered riskier. Non-conventional loans are backed by government agencies and include loans supported by the Federal Housing Administration (FHA), Veterans Administration (VA), and the US Department of Agriculture (USDA).  Conventional Mortgage Loans Generally, conventional mortgage loans require a credit score of at least 620 and a 3% down payment. However, if a borrower makes a ​​down payment of 20%, they are not obligated to pay the private mortgage insurance, which is a big plus. Now that we know the basics, let’s check out the different types of conventional mortgage loans and how they work. Conforming Conventional Loans Conforming loans are those that fall under the loan limits set by the Federal Housing Finance Agency and meet additional loan standards set by Fannie Mae or Freddie Mac. These loans can not exceed a conforming loan limit determined by the FHFA, which is how they got the name in the first place. The limit changes yearly and is determined based on the House Price Index report that tracks the average increase in home values over the previous year. For 2022, the conforming loan limit is $647,200 for most parts of the US. Non-Conforming Conventional Loans Non-conforming loans, also known as jumbo loans, exceed the limit set by the FHFA or use standards different from those set by Fannie Mae and Freddie Mac. Out of all types of conventional mortgage loans, these are the riskiest ones as they go over the maximum loan limit. That is why they usually have strict qualification requirements.  Fixed-Rate Mortgages Fixed-rate mortgages have the same interest rate throughout the life of the loan. And that’s their main advantage. You always know your rate, so there will be no surprises regardless of external economic conditions. However, there is one principal thing to keep in mind. If you choose to go for a fixed-rate mortgage with a longer repayment period, you will have a higher interest rate than you would if you opt for a short-term loan.  Adjustable-Rate Mortgages Adjustable-rate mortgages are the opposite of fixed-rate mortgages, and their interest rates can vary a fair bit over the span of the loan term. An adjustable-rate mortgage usually has an introductory period with a lower interest rate, after which the rate increases.  As much as that initial interest rate may seem tempting at first glance, you should know that it most certainly will go up as time goes on. With that in mind, you might want to read up on the fine print and calculate total potential costs or check what other types of mortgage loans are available. Portfolio Loans Portfolio loans are a type of mortgage originated by the portfolio lender. Instead of selling the mortgage to another company, the lender issues the loan and keeps it within their range of investment holdings. This way, the mortgage doesn’t have to meet the rules set by Fannie Mae and Freddie Mac, making it easier for borrowers to qualify.  Non-Conventional Mortgage Loans We have already noted that non-conventional mortgages are made for borrowers with low income or who wish to apply for a loan with a low down payment or none at all.  According to the recent housing statistics, the average down payment for a new home in 2020 was $59,880. That is far above the price range of many US citizens, who instead had to look for cheaper alternatives.  Non-conventional mortgages are usually used by borrowers who were denied conventional loans due to insufficient cash reserves, a history of bankruptcy, or because they are self-employed. So, let’s see what types of government mortgage loans there are. FHA Loans FHA loans are the ones insured by the Federal Housing Administration. This means that the FHA doesn’t issue them directly, but if you default on your mortgage, the agency will compensate the private lender. Since it is less risky for them, mortgage lenders usually offer more favorable terms here than with conventional mortgages. To qualify for the FHA loan, you should have a credit score of at least 500. If your score is between 500 and 579, you will likely have to make a down payment of 10%. But, if it is 580 or higher, your down payment can be as low as 3.5%. Note that all Federal Housing Administration loans require mortgage insurance, so you should also plan for that extra cost. VA Loans VA loans are backed up by the US Department of Veterans Affairs and are meant to help military service members, veterans, and their eligible family members find a home. Similar to getting an FHA loan, the federal government will compensate the lender if you default on your VA loan monthly payments. However, there are some differences.  If you’re after the types of mortgage loans with no down payment requirements, the VA loans might be an excellent choice, as they require no upfront cash and don’t have mortgage insurance. You are only required to cover the VA funding fee, which must be paid upfront.  USDA Loans If you’re considering purchasing a residential property in a rural area, a USDA loan might be just what you are looking for. The US Department of Agriculture offers these government-backed mortgage programs for people with low and middle incomes. The best thing about USDA loans is that they usually don’t require any down payment and have fixed interest rates.   To qualify for a USDA loan, the borrower needs to live in an area with up to 35,000 people and can’t make more than 115% of the area’s median income. If you meet all of these criteria, you can apply for the mortgage directly with the USDA Rural Development office. HUD Section 184 Loans Lastly, there’s another type of mortgage loan for those with bad credit, the HUD Section 184 mortgage. These mortgages are guaranteed by the HUD’s Office of Native American Programs. They are designed for American Indian and Alaskan Native families, Alaskan villages, tribes, or tribally designated housing entities struggling to purchase a home. The mortgages don’t have any requirements in terms of minimum credit score and usually come with a low down payment. However, there are some limitations borrowers should be aware of. HUD Section 184 loans are limited to single-family housing and fixed-rate loans of up to 30 years. Final Thoughts Now that you’re more familiar with all the mortgage types on offer, you should have a much easier time picking one. Just make sure to do your due diligence to find a property that suits your needs the best. Remember to read the fine print and make timely mortgage payments to avoid any surprises in the form of additional costs.  

What is due diligence in real estate? Many struggle to find the answer to this question, especially those who don’t have much or any experience in home buying. It’s a well-known fact that there are plenty of steps that need to be taken before the final contract is signed. But what exactly are those steps and how to go about performing them is an entirely different story. Due to this, we’ve decided to create a simple guide that’ll hopefully make this a far less intimidating and stressful process.  What is Due Diligence in Real Estate? Due diligence in regard to real estate can be defined as thoroughly researching the property in which you are interested. Shopping for a house or office space involves high stakes, so no detail should be overlooked. Therefore, aside from performing the standard inspections and appraisals, you should always do your homework, and that means doing some investigating on your own.  We have to mention that some experienced real estate investors choose to skip certain parts of due diligence, which is fine since they have the knowledge to do so. However, those purchasing their very first home or trying to get into the business of property investing should carefully follow a real estate due diligence checklist, such as the one we’ve prepared below, and resist the urge to rush any of the listed tasks. Due Diligence Checklist for Buying Real Estate Shop around. House hunting may be interesting at first but it can get quite tiresome after a while, causing some to look at a minimal number of options. Without seeing as many properties as you can, you can’t be certain that your final decision is the best one you could make. Also, keep in mind that it’s pretty easy to get the wrong impression of the real estate market by looking at homes in a single area.  Investigate the surroundings. Our next piece of due diligence real estate advice concerns analyzing each and every neighborhood thoroughly. You can learn a lot about a property’s value from its surroundings. The area’s demographics, the state of the homes in it, and crime rates can tell you if the value of the real estate you’re interested in is going up or down.  Organize inspections. Once you’ve done your own research, you should call in the professionals, experts who can spot potential problems you may not be able to. There are many types of inspections and, depending on your budget and due diligence deadline, you should try to organize as many of them as possible. Here are the most common types of inspections: General inspection: A general inspection report should include information on the state of the walls, floors, staircases, roof, heating and cooling, foundation, porches, plumbing, electrical installation, and the like. These inspections are only visual and are required by most lenders. Wood-destroying organisms inspection: Some lenders will also ask for a WDO home inspection. The inspector should tell you if the structure has any wood rot caused by either termites or moisture and how severe the damage is. Even if your lender doesn’t request it, we suggest you don’t skip this real estate due diligence task as wood rot-related repairs can be costly. Lead-based paint inspection: This type of inspection is mandatory for any house built before 1978. If the seller knows that lead-based paint has been used in or outside of the home, they are obligated by law to inform you about it. Radon gas inspection: Not many people know that a radon gas inspection even exists, but if you have the time and money, we would definitely recommend that you have it done. According to the United States Environmental Protection Agency, radon, a radioactive gas, causes thousands to get lung cancer every year. Therefore, although a radon test usually isn’t a part of a typical real estate due diligence process, you might want to consider it. Defective drywall inspection: Another rare inspection is the defective drywall test. It’s used to determine whether or not a home was built with defective drywall, which was manufactured in China, imported to the US, and used in construction between 2001 and 2009. Not only do the high levels of sulfur in the contaminated drywall affect the quality of the structure but they can also lead to respiratory health problems.  Arrange appraisals. If you’re planning on obtaining your funds through a crowdfunding platform or from a bank, you should expect the lenders to request an appraisal. Even those who don’t plan on taking out a loan should think about adding an appraisal to their due diligence real estate checklist because it determines the realistic value of a property and, as such, can keep a seller from attempting to inflate the property’s price. Compare rates. When looking for property financing, you mustn’t forget to take the time to compare interest rates from multiple lenders. The first few offers that you get may turn out to be similar, but don’t let that stop you from exploring further. In the long run, even the smallest of differences could end up saving you a good amount of money. Assess the property’s eligibility for insurance. Before your due diligence deadline passes, you should make sure that the property you intend to purchase meets the minimum standards of insurance companies. There are three main types of insurance that we’d like to mention here: Homeowners insurance: If you plan on living in the property you bought, you should consider getting a homeowners insurance policy. It protects both your home and the assets inside it from unforeseen circumstances such as tornadoes, fires, or thefts. Your insurance rates will be higher if your property is, for instance, old or in a flood zone, so keep that in mind during your property due diligence assessments. Landlord insurance: No matter how careful you are when screening your potential tenants, accidents happen, which is why we’d advise all those intending to rent their properties to buy landlord insurance. This type of coverage provides financial protection if your property is damaged, becomes unavailable due to a catastrophic event, or if someone gets hurt while living in or visiting it. Vacant property insurance: Vacant property insurance is typically the most expensive of the three, but if you’re planning on flipping a property, you might want to look into getting this kind of policy. Empty homes are at high risk of theft, vandalism, and fire. Perform a title search. A key part of due diligence in real estate is doing a title search. During this process, public records and other documents relating to the property are examined to determine the property’s legal ownership and if any lines or claims are associated with it. If you fear that your title search might not uncover every single issue, you might want to think about purchasing title insurance. Title insurance covers disputes that occur both during and after a sale.  Check the restrictions of the homeowner association.  Owners of properties located in communities managed by homeowner associations have to follow the rules these organizations make and enforce. Whether you’re conducting residential or commercial real estate due diligence, you should remember to check what these rules are. Although this may not seem like a very important step to you, know that some HOAs impose extremely strict requirements, which you may not wish to adhere to. Consider getting some assistance. Navigating the home buying process and all the paperwork that comes with it shouldn’t be taken lightly, especially if you’ve never done anything similar before. To avoid getting overwhelmed, you might want to consider hiring a real estate attorney. Note that online legal firms tend to be more affordable than their brick-and-mortar counterparts. As you can see, the answer to the question of “What is due diligence in real estate?” is quite a long one. If, while reading it, you felt like there was far too much to remember, there are some great free task management apps you could download to help you keep track of everything.