Microsoft Dynamics 365 vs. Salesforce – Which One to Choose for Your Business?

So, you’ve decided to implement a CRM system in your workflow? Excellent! You’re on the verge of introducing a tool that’s going to transform the way you work. 

Quick access to customer data, personalized interactions, and stronger connections are what you’re going to benefit from. 

But, which CRM tool should you trust? If not sure, Salesforce and Microsoft Dynamics 365 are the two most trusted CRM platforms. Loved by thousands of businesses worldwide, they both lead the CRM industry in some ways. 

Salesforce CRM is a cloud-based platform known for its user-friendly interface and customizable features. On the other hand, Microsoft Dynamics 365 offers a suite of ERP and CRM applications tailored for a variety of businesses. 

Let’s take a closer look at what they both have to offer and choose one that fits your business needs perfectly.

Salesforce CRM vs. Microsoft Dynamics 365

Claiming over 23% of the market share, Salesforce is the most popular CRM platform worldwide ^[1]. Its sleek, modern, and user-friendly interface is what makes it the leader. On the other hand, Microsoft Dynamics 365 holds around 5.7% of the market share. It is impressive considering its launch just a decade ago. Covering the gap rapidly, it's emerging as a competitive rival to Salesforce CRM.

The Strengths of Salesforce CRM

Salesforce CRM  is a cloud-based software that manages customer interactions, sales pipelines, and customer data all at one location. What makes, Salesforce CRM an industry leader is its capability to be accessed from anywhere. Plus, its regular updates, frequently added features and functionalities make it one of the most advantageous CRM software for businesses. Here are some of the most promising features of Salesforce CRM: 

• Cloud-Based Architecture: Salesforce's cloud-based design allows companies to minimize on-site resources. Users can work from anywhere on any device, whether they use Apple OSX, Windows, or Linux.
  
• Predictive Analytics: Salesforce Einstein leverages built-in AI to analyze data and predict customer behavior and sales trends. You can gain actionable insights to close more deals, identify potential roadblocks, and stay ahead of the curve.
  
• Mobile App for On-the-Go Access: Its mobile application allows you to stay connected and productive all the time. This app allows you to access customer data, update leads, manage pipelines, and close deals—all from your mobile device.
  
• Scalability: Salesforce scales effortlessly to fit business needs, regardless of the company's size. Whether you are running a startup or an enterprise, Salesforce adapts seamlessly to its growth.
  
• Customizable: Salesforce isn't a one-size-fits-all solution. Customize workflows, automate processes, and personalize dashboards to perfectly match your unique business needs.
  
• Integration with Third-Party Apps: You can seamlessly integrate Salesforce with other business apps. It allows you to break down data silos and create a unified platform for effortless collaboration between marketing, sales, customer service, and other departments.
  
• Support and Training Resources: Salesforce is not just software; it is a supportive community. You can access comprehensive resources, training materials, and expert help whenever you need it. Salesforce offers a wealth of training resources to empower your team and unlock the platform's full potential.

The Strengths of Microsoft Dynamics 365

With its easy interface and comprehensive suite of features, Microsoft Dynamics 365 is a cloud-based CRM software loved by businesses of all types. This is an ideal software for businesses who want to break down the data silos and centralize processes like CRM and ERP. Since it handles both CRM and ERP, this software can streamline internal communication as well as customer interactions. Here are some of the strengths of Microsoft Dynamics 365: 

• Collaboration Across Teams: You can integrate Microsoft Office 365 with your existing CRM system to allow teams to work together effortlessly. For example, sales reps can share documents with marketing for campaign creation, all within a single platform.
  
• Advanced AI Tools: Microsoft Dynamics 365 offers built-in AI features that automate tasks, predict customer behavior, and generate insights from your data. You can use the power of its AI features to streamline workflows and make informed decisions.
  
• Industry-Specific Solutions: It offers industry-specific solutions to meet the unique needs of retail, manufacturing, healthcare, and more. You can get access to industry-specific features, pre-built workflows, and best practices to meet your specific market needs.
  
• Unified Data Model: Microsoft Dynamics 365 offers a unified data model that stores all your customer data in a single location. It eliminates data silos and ensures everyone in your organization has access to the same accurate and up-to-date information.
  
• Flexible Deployment Options: Microsoft Dynamics 365 offers both cloud-based and on-premises deployment options. You can choose a cloud solution for easy access and scalability, or opt for an on-premises deployment for increased control over your data.

Limitations of Salesforce CRM and Microsoft Dynamics 365

While both Salesforce CRM and Microsoft Dynamics 365 offer robust features, they also have their limitations. Let's explore those limitations to make better decisions:

Cons of Salesforce CRM:

• Salesforce CRM is a standalone platform, making data transfer to other software expensive.
• Excessive customization can lead to a cluttered interface and usability issues.
• Sharing reports is restricted to Salesforce users only, limiting collaboration.
• The costs and contractual obligations of Salesforce may become burdensome for smaller and mid-market organizations.

Cons of Dynamics 365:

• The complex customization process may require technical expertise, making it challenging for non-technical users.

• Limited third-party integrations compared to some competitors, potentially restricting seamless workflow with other business tools.
• The higher initial learning curve for new users is due to the platform's extensive functionalities and features.
• Higher cost of ownership compared to some other CRM solutions, especially for smaller businesses with limited budgets.

Final Verdict 

Being each other’s main competitors in the CRM market, both Salesforce and Microsoft Dynamics 365 have quite similar features. But things that set them apart from each other will help you finalize which software is actually suitable for your business. Here's a detailed breakdown to help you make an informed decision: 

Business Goals:

With its user-friendly interface, Salesforce CRM is a perfect solution for businesses of all sizes, including startups and SMBs. If your business goal is to generate leads or foster good connections with customers, Salesforce CRM might be an ideal solution for you. 

Meanwhile, Microsoft Dynamics 365 is a good solution for mid-sized to large enterprises that seek a unified CRM and ERP solution. This solution is perfect for both streamlining internal operations and managing customer interactions. 

Product Complexity and Cost:

Salesforce CRM offers different tiered editions, each with its own unique set of features. For example, Essential Edition is ideal for smaller teams and individuals new to CRM. On the other hand, the Enterprise Edition is equipped with in-depth features, including advanced analytics and integration with other software. The cost of Salesforce CRM depends on the chosen edition and number of users. 

Dynamics 365 offers a broader range of features. It can help you with CRM, ERP, and industry-specific solutions. You can choose features depending on your business needs and optimize licensing costs accordingly. 

Data Integration: 

Salesforce CRM is known for its seamless integration with third-party solutions. This capability makes it an ideal solution for businesses with a wide range of existing software. 

Dynamics 365 also comes with integration capabilities but offers limited options. If you choose Dynamics 365, make sure to evaluate your existing software ecosystem to encourage a smooth data flow. 

Making the Final Decision

When comparing both, we have to admit that there's no single "one size fits all" answer. But the good thing is that both Salesforce and Microsoft Dynamics 365 offer free trials for 30 days. You can take advantage of it and determine which software best suits your needs. You can also seek guidance from CRM experts and consultants to avoid selection and implementation hassles. These experts evaluate businesses, their CRM needs, and budgets to help them select solutions that best align with their goals.

Ready to Implement Your Ideal CRM Platform for Your Business? Let’s Talk!

The experts at Growth Natives would love to pitch in. Drop us a line at info@growthnatives.com and we will take it from there.