Enterprise Resource Planning (ERP) systems play a crucial role in modern businesses, revolutionizing the way companies manage their operations, sales, and marketing efforts. In fact, more than 70% of large enterprises use ERP software. In this comprehensive guide, we will delve into the world of ERP sales and marketing, exploring the fundamental aspects of ERP systems and how to successfully promote and sell them.

Understanding ERP Systems

In this section, we’ll delve deeper into the essential aspects of ERP systems, including what they are and the primary business benefits they offer.

What Is an ERP System?

An ERP system, which stands for Enterprise Resource Planning, is a sophisticated software solution designed to serve as the central nervous system of an organization. It integrates and automates a wide range of critical business functions, including but not limited to financial management, human resources, procurement, inventory management, sales, and more. ERP software replaces the siloed and disparate information systems that departments previously operated, providing a single, unified database that serves as the backbone for all organizational activities. With ERP software in place, a single database can cater to the entire organization, eliminating the need for separate systems in each department. This shared database can be accessed through a unified user interface, which simplifies data management and decision-making. User-friendly dashboards and built-in analytics tools empower executives and employees to make better decisions based on real-time, accurate data. Furthermore, ERP systems control data access through user permissions, ensuring that each employee can access the data required to perform their job effectively.

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What Are the Primary Business Benefits of an ERP System?

The adoption of an ERP system offers numerous advantages to businesses, including:

  • Automated Workflow Processes and Fewer Errors

ERP systems facilitate seamless data sharing and access across all departments. This eliminates the need for redundant data entry and exports, reducing errors, increasing productivity, and saving time. The reduction of these administrative burdens can alleviate the burden on employees and reduce the risk of burnout.

  • Improved Collaboration

ERP systems provide real-time data visibility, which streamlines operations across the organization and establishes a single system of record. This enables companies to make critical decisions promptly and avoid unnecessary wastage. Teams can quickly identify any obstacles that may hinder productivity, and executives can make informed decisions with a comprehensive view of the entire organization.

  • Increased Productivity

It is reported that over 53% of organizations have seen a positive ROI from their ERP implementation.With all data consolidated in a unified platform that offers clear insights into every aspect of the business, staff can prioritize their core responsibilities, such as patient care. Instead of spending excessive time on data management, employees can concentrate on managing a higher volume of patients and delivering high-quality services. 

  • Decreased Operating Costs

Implementing an ERP solution, particularly cost-effective cloud-based options, can significantly reduce operating costs for organizations, including rural and community hospitals. These solutions automate essential business functions while promoting full integration across all departments, thereby enhancing efficiency and reducing unnecessary expenses.

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Types of ERP Systems

ERP systems come in various forms to cater to the diverse needs of businesses. The choice of ERP system can significantly impact how an organization manages its operations and resources. Here, we explore the three primary types of ERP systems: in-premise ERP, cloud-based ERP, and hybrid ERP.

1. In-Premise ERP

In the realm of ERP sales, in-premise systems stand as the traditional approach. These systems are set up and run on a business’s own computing hardware and servers. While in-premise ERP offers complete control and the ability for extensive customization to align with specific business needs, it does come with certain considerations. One of the key aspects of in-premise ERP is that it requires substantial up-front investment in terms of software licenses and hardware infrastructure. The company takes on the responsibility for maintaining and managing both the ERP software and the associated hardware. This setup offers businesses a high degree of control but can be resource-intensive.

2. Cloud-Based ERP

Cloud-based ERP solutions have transformed the ERP landscape. These systems are hosted on cloud platforms, which means the software is accessible over the Internet. Unlike in-premise ERP, users of cloud-based ERP systems do not need to manage or maintain the software or hardware infrastructure. Cloud ERP is often provided as a service, commonly known as software-as-a-service (SaaS) ERP. Instead of owning the software, customers subscribe to it through a monthly or yearly plan. With cloud-based ERP, the provider takes care of application maintenance, updates, data storage, and security. Notably, there are no substantial upfront hardware costs associated with cloud-based ERP.

3. Hybrid ERP

Hybrid ERP represents a fusion of both on-premise and cloud-based ERP components. In essence, it combines the advantages of cloud-based ERP systems with the management and security features of on-premise ERP systems. With hybrid ERP systems, businesses gain more flexibility and control over their ERP infrastructure. For instance, they can opt to keep highly sensitive and critical data on-premise, while utilizing the adaptability and cost-saving benefits of the cloud for less critical data. This approach allows organizations to safeguard essential data while leveraging the scalability and cost efficiency of cloud-based solutions. By understanding the differences between these types of ERP systems, businesses can make informed decisions about which approach aligns best with their specific requirements and objectives. The choice of ERP system can have a profound impact on an organization’s operations and its ability to adapt to the dynamic demands of the business landscape.

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How to Sell ERP: 3 Ways

When it comes to ERP system sales, there are three primary approaches to consider, each with its unique advantages and applications:

1. Direct Sales

Direct sales involve selling ERP software directly to customers through your own efforts. This method can be applied to various licensing models and offers flexibility in reaching your target audience. Within direct sales, there are two distinct approaches:

  • Inbound: Inbound sales rely on your marketing team’s efforts to attract and guide potential customers to your ERP solution. It involves creating compelling content and strategies that pull customers towards your product.
  • Outbound: In contrast, outbound sales involve actively reaching out to potential clients through methods such as cold calls or cold emails, typically executed by sales agents. This approach requires a proactive approach to identify and engage potential leads.

2. Sales Through Resellers

Collaborating with ERP software resellers allows you to expand your ERP’s market reach. Your partners act as intermediaries who know how to sell ERP software and promote it on your behalf. This marketing strategy for ERP software enables you to tap into their existing client base, potentially gaining new customers and broadening your market presence.

3. Sales Through Vendor Partners

This approach is particularly effective when opting for mixed licensing models. It involves partnering with other companies that can contribute to the growth and enhancement of your ERP system. These partnerships go beyond your own company, forming a community around your ERP. Vendor partners may assist in software sales consulting, improving existing modules, adding new features, translating your system into different languages, and more.

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Marketing Plan for ERP Solutions

When crafting a comprehensive marketing plan for your Enterprise Resource Planning business, it’s essential to learn how to market ERP software and follow these six key steps. Utilize the ERP Marketing Plan Template in ClickUp for a structured approach:

  • Define Your Target Audience

Begin by clearly identifying the specific market segment that your ERP solution is designed to serve. Consider factors such as industry, company size, and the specific challenges your product addresses. A deep understanding of your target audience enables you to tailor your strategies for marketing ERP software effectively.

  • Set Clear Marketing Objectives

Determine your marketing objectives. Are you aiming to boost brand visibility, generate leads, or drive conversions? Establishing clear objectives is crucial for measuring the success of your marketing initiatives and maintaining focus on your goals.

  • Develop a Compelling Value Proposition

Craft a unique and compelling value proposition that clearly articulates the benefits of your ERP solution. Emphasize how it addresses the pain points of your target audience and provides a competitive edge. Your ERP value proposition should be concise, memorable, and persuasive.

  • Identify Marketing Channels

Identify the most effective marketing channels to reach your target audience. Consider both digital avenues like social media, email marketing, content marketing, and search engine optimization (SEO), as well as traditional channels like industry events and print advertising that may resonate with your audience.

  • Create a Content Strategy

Develop a content strategy that aligns with the needs and preferences of your target audience. Determine the types of content that will resonate with them, such as blog posts, case studies, videos, or webinars. Establish a content calendar to ensure the consistent delivery of valuable content.

  • Measure and Optimize

Regularly monitor the performance of your marketing efforts and make data-driven optimizations. Keep track of essential metrics like website traffic, lead generation, conversion rates, and return on investment (ROI). Use these insights to refine your ERP marketing strategy and enhance results over time.

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Challenges in ERP Sales

Despite the benefits that ERP offers, ERP system sales and marketing can present significant challenges. Here, we delve into the primary obstacles faced by ERP sales professionals:

  • Cost Challenges for Small and Medium-Sized Businesses

One of the foremost challenges is that ERP systems can be financially burdensome, particularly for small and medium-sized businesses. Convincing these organizations to make a substantial investment in an ERP system, especially if they are already using alternative systems or procedures, can be a formidable task.

  • Resistance to Investment in ERP Systems

Resistance to investing in ERP systems is another hurdle. Some businesses may be hesitant to allocate funds for ERP software, harboring doubts about the return on investment. Overcoming this resistance entails demonstrating the long-term benefits and value that an ERP system brings to the table

  • Resistance to Change in Existing Processes

Change can be met with resistance, especially when it disrupts established workflows and processes. Employees and organizations accustomed to old strategies may push back against the adoption of ERP systems. Effective change management strategies are essential to address this resistance and facilitate a smooth transition.

  • Complexity in Customizing ERP Solutions

ERP systems are highly customizable to meet the specific needs of organizations. However, the level of customization can sometimes make it challenging to sell a standard solution to a customer with unique requirements. Balancing customization with a practical and cost-effective solution can be a complex endeavor.

  • Intense Competition in the ERP Market

The ERP market is teeming with a multitude of providers offering a wide array of solutions. This intense competition makes it challenging to differentiate a particular ERP solution from the rest. ERP vendors must work diligently to showcase their unique value propositions and stand out in a crowded marketplace.

  • Lengthy Implementation Timelines

ERP implementation is typically a time-consuming process, which can lead to potential disruptions in business operations. Organizations that seek a quick return on investment may find the lengthy implementation timeline to be a significant obstacle. Managing expectations and ensuring a smooth transition is crucial in mitigating this challenge.

  • Stakeholder Resistance to Cloud-Based ERP Offerings

While cloud-based ERP solutions offer numerous advantages, some organizations may encounter resistance from stakeholders who have concerns about the security and reliability of cloud-based systems. Addressing these concerns with transparent communication and robust security measures is essential to gain stakeholder trust.

Tips For Building A Strong Relationship With Potential ERP Customers

The relationship between clients and software providers is just as important as the product itself. It also determines how long the ERP customer relationship lasts. So here are some tips that can help make it a long-term commitment.

  • Understand What Your Customers Need

The first step in building a strong ERP customer relationship is listening to what your customers have to say. It helps you research deeply and find better insight regarding their industry, goals, challenges, and preferences. Understanding your customer’s needs also allows you to avoid misunderstandings or making errors. Understanding the problems and challenges helps you tailor your right ERP solution strategy for the customers.

  • Sharing Information and Experience

Share your knowledge and experience with your ERP customers to help them understand your mission and goal and what they can achieve from your system. Doing this lets your client know that you know that you understand what they need and care about their success.

  • Be Open for Effective Communication

Communication is key, but you should ensure effective communication by discussing the projects, approximate timelines, milestones, risks, and solutions. Let your clients know you are open to answering their questions or queries via preferred modes, such as phone calls, emails, texts, video conferences, direct communications, etc. 

  • Establish Credibility

Rather than staying limited to what your service offers, take an extra step to go beyond what the contract says. This will add value and credibility to your service and help you gain ERP customer satisfaction.

  • Offer Customized Solutions According to Their Needs

One of the challenges of selling ERP systems is that if the solution isn’t right, the customers will face problems before and after they receive the service. That is why it is vital to get a deep understanding and perform thorough research to offer customized solutions that meet their business demands.

  • Ask For Feedback

Last but not least, always encourage your customers to give honest feedback after providing your service. Getting feedback measures your ERP software solution’s performance, service, quality of work, drawbacks, etc. It will help you measure your client’s satisfaction, identify weaknesses and strengths, and make necessary changes. Moreover, letting your customers know their opinion is valued is another way to gain trust and build a strong relationship.

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In summary, selling ERP systems presents both opportunities and challenges. ERP software offers transformative benefits, such as streamlining operations and enhancing decision-making. However, the complexities and costs associated with ERP sales can be obstacles in the ERP sales process. To succeed in ERP software sales, understanding the types of ERP systems, tailoring your approach to the audience, and effective marketing is essential. Overcoming resistance to change, customization issues and market competition requires a strategic approach.ERP systems hold the promise of business transformation, and with a clear understanding of the market and a compelling value proposition, companies can achieve efficiency and success.

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