from Pascal Kuptz
Choosing CRM software will change the face of your business. We compare Microsoft Dynamics 365 and Salesforce - two leading systems that differ in terms of functions and user experience. At the end of the article you will find a short comparison if you only have a short time to read.
Integration and use of a CRM system in medium-sized companies
Salesforce shines with its scalability, which makes it attractive for companies of all sizes. Its strength lies in the personalization of customer management. Companies can track and analyze customer interactions across different channels. The platform makes it possible to plan and implement targeted marketing campaigns. The availability of a wide range of apps and integrations via a dedicated app store makes it possible to tailor Salesforce precisely to the specific needs of your company. Salesforce is available exclusively as a cloud solution.
Dynamics 365, on the other hand, is ideal for medium-sized companies looking for a comprehensive yet seamlessly integrated solution. Its strength lies in the simplification of business processes through integration with other Microsoft products. Companies already using Office 365 or other Microsoft tools will find Dynamics 365 a natural extension of their working environment. It not only supports sales, marketing and customer service, but also offers solutions for finance, operations and commerce on request, which gradually enables a holistic overview and control of the company. Particularly noteworthy is the ability to adapt Dynamics 365 to individual needs - whether by customizing the existing modules or by adding specific functions that are relevant to your company. You have the choice between a cloud solution or on-premise software, i.e. installation on your own servers.
Everyday use - a comparison of Dynamics 365 and Salesforce
An intuitive user interface and easy access to the necessary information are key to the successful introduction of a CRM system. Dynamics 365 offers a familiar interface for users who already work with Microsoft products. Salesforce scores with a wide range of customization options, but this also means that it requires a certain training period. In day-to-day operations, Salesforce enables users to efficiently manage and analyze customer data. For sales teams, it offers advanced tools for lead generation and management.
Dynamics 365 also offers these functions. It also promotes team collaboration through its integration with tools such as Teams and SharePoint. It offers a uniform platform for different business areas, which simplifies internal communication and data management.
Differences in the core functions of Dynamics 365 and Salesforce
This is where the strength of Dynamics 365 shines - especially for mid-sized companies. It offers a deeper understanding of customer sentiment and a close connection to LinkedIn, which can be particularly beneficial for smaller sales teams. The integration of LinkedIn makes it possible to use networks and relationships efficiently.
When it comes to reporting, both systems offer powerful solutions. Salesforce with Tableau provides deep insights and personalized reports. Dynamics 365 uses Power BI to prepare complex data in an understandable way. These integrations help small and medium-sized companies to gain meaningful insights from their data and make informed decisions.
Use of artificial intelligence in CRM
Both systems use AI to optimize sales and customer service. Dynamics 365 offers AI-supported insights as standard, which is attractive for companies without additional investment in AI technologies. Salesforce includes Einstein, the more advanced AI, but at an additional cost.
AI capabilities in Dynamics 365:
- Identification of new market trends and analysis of customer needs
- Intelligent forecasts for sales development
- Support for evaluations, quick and easy reports
- Recommend measures and topics of conversation with customers based on previous interactions
- Automated notifications on customer relationships so that you can proactively counteract risks
- Contextual recommendations for action at every stage of your sales cycle
AI capabilities in Salesforce:
- Most advanced AI learning algorithms that understand each company's unique sales habits and proactively suggest improvements
- Recommendations of answers to emerging customer questions
- Suggestions for effective marketing strategies and tactics to optimize sales
- Recommendations for the next best action steps in the sales team
Cost comparison of Dynamics 365 and Salesforce
For small and medium-sized companies, the cost-benefit ratio is crucial. Dynamics 365 is often more cost-efficient due to its flexible license options. This is particularly relevant for companies that have a mix of intensive and occasional users. However, the cost of CRM systems such as Microsoft Dynamics 365 and Salesforce can vary depending on a company's specific requirements and the level of service chosen. It is important to consider not only the direct license costs, but also other factors that can affect the overall cost.
Costs Salesforce:
- License structure: Salesforce offers various subscription levels that differ in terms of functionality and price. The costs are generally based on the number of users and the selected function level.
- Additional costs: Additional fees may apply for advanced functions such as Einstein AI. Integration with other systems may also entail additional costs for connectors or customizations.
- Scalability: Salesforce is known for its scalability, which also means that costs can increase as the company grows.
Costs Microsoft Dynamics 365:
- Flexible licensing: Dynamics 365 offers flexible licensing that allows different license types to be combined. This can be cost-effective for SMEs that have a mix of intensive and occasional users.
- Total cost of ownership: Integration with existing Microsoft products can lead to a lower total cost of ownership as less additional software or customization is required.
- Predictable costs: Dynamics 365 can be more attractive for companies with fixed budgets, as the cost structure is often clearer and more predictable.
Our conclusion
For small and medium-sized companies looking for a cost-effective, integrated and easy-to-learn solution, we believe Microsoft Dynamics 365 is the better choice. The natural integration into the Microsoft ecosystem and the AI functionalities at no extra cost are strong arguments. In our experience, the training period is also generally shorter because employees are already familiar with Microsoft environments. This also strengthens the acceptance of the new CRM in your company. And only active customer relationship management is successful customer relationship management.
And here you will find an overview of the most important points of comparison between Microsoft Dynamics 365 and Salesforce:
Use and integration
Dynamics 365
Perfect integration into Microsoft products, cloud & on-premise version
Salesforce
Cloud version only
Application in everyday life
Dynamics 365
Wide range of customization options; intuitive user interface, promotes team collaboration
Salesforce
Wide range of customization options
Differences in core functions
Dynamics 365
Close connection to LinkedIn, preparation of complex data with Power BI
Salesforce
Deep insights and personalized reports with Tableau
Artificial intelligence
Dynamics 365
AI functions are included in the CRM license. There are no additional costs.
Salesforce
Salesforce's AI is more sophisticated, but must be purchased as an additional module.
Costs
Dynamics 365
Very flexible license structure, which benefits both small and large companies
Salesforce
Relatively rigid cost structure. All users of the application must have the same license, which can result in very high costs under certain circumstances.
Conclusion
Dynamics 365
Ideal for medium-sized companies: simple integration and easier familiarization. Also lower costs.
Salesforce
More extensive in some areas, but also more costly and time-consuming. Longer familiarization time for employees.
How about a no-obligation exchange with our CRM expert?
Pascal Kuptz is a Customer Experience Specialist. At maku, he is your contact for Customer Relationship Management (CRM) and process digitization. His passion is customer-centric thinking and unforgettable experiences for customers. His mission: Tailor-made solutions that really fit the business.