Microsoft Dynamics VS Salesforce

Microsoft Dynamics and Salesforce both dominate the CRM Market. As we live in an era where the customer is the King, having a CRM for every business has become the need of the hour! A CRM ( Customer Relationship Management) tool helps provide personalization service to its customers. It increases the efficiency of businesses by streamlining the sales and marketing team operations.

In this blog, we will deeply compare Microsoft Dynamics and Salesforce from many angles. We will also get to know the pros and cons of the tools in detail.

Table of Contents

• What is Microsoft Dynamics 365
• What is Salesforce
• Similarities between Microsoft Dynamics and Salesforce
• Differences between Microsoft Dynamics and Salesforce
• Pros and Cons of Microsoft Dynamics 365
• Pros and Cons of Salesforce
• Frequently Asked Questions

What is Microsoft Dynamics 365?

Microsoft Dynamics 365 is essentially a cloud-based software solution. It helps to manage resources such as materials and customers. Resource management is known as enterprise resource planning or ERP. Customer management is known as customer relationship management or CRM. CRM and ERP are combined to achieve overall efficiency in the organization. It helps integrate data from various sources using business logic and different processes. Therefore, Microsoft Dynamics connects all the business applications designed to meet business requirements.

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What is Salesforce?

Salesforce is also a cloud-based software company specializing in CRM (Customer Relationship Management) services.  Companies use Salesforce to connect with customers, prospects, partners, and others. Salesforce includes software products that deal with CRM services and an AI ( Artificial Intelligence) platform to automate finance, marketing, and human management. Also, it consists of a platform for users to develop applications independently.

What are the similarities between Microsoft Dynamics and Salesforce?

The features of both Salesforce and Microsoft Dynamics 365 are similar. Account Management, field service, sales forecasting, contact management, social service of customers, and others are a few features that can be handled easily by both products. Both systems also provide their app marketplaces, where users can select from various additional business applications. This will help extend the CRM Platform's usability and align it with the organization's goals.

Since both Salesforce and Microsoft Dynamics 365 are mainly offered as software-as-a-service (SaaS) versions, they can adapt to user-specific functionality requirements. They can scale the business's size, allowing for scaling up and down based on needs. Also, large organizations widely use both platforms.

Related Article: Microsoft Dynamics 365 Tutorial

What are the differences between Microsoft Dynamics and Salesforce?

• Ease of Use

Microsoft Dynamics: We are all familiar with various Microsoft products, so you might assume that transitioning to the powerful Dynamics 365 CRM software is as simple as using other applications. However, the reality is that Microsoft Dynamics 365 does involve a certain learning curve. While it's not overly complex like rocket science, it's more complex than working with a basic Excel spreadsheet. Nonetheless, the process becomes more seamless when you integrate Dynamics with Microsoft's web hosting service, Azure.       

Salesforce: It was the first CRM system to cater to the requirements of both small and large businesses. Salesforce was initially designed as a user-friendly tool tailored to non-tech-savvy sales teams. While the fundamental interface of this contact management tool seems approachable, the extensive array of CRM features might initially appear overwhelming. From tasks like marketing automation to efficient sales territory management, Salesforce simplifies and streamlines various aspects of business operations. 

Expert opinion: Though both are at par regarding user experience, Salesforce stands out as the top choice for user experience and overall ease of use in CRM solutions. Setting up workflows is straightforward, and real-time data updates are presented clearly. It doesn't mean that Microsoft Dynamics CRM is unmanageable; it's just not as simple as Salesforce.  

• Customer support

Microsoft Dynamics: Microsoft has been making software for both personal and business for a long time. Hence, customer service has been a priority for them. It offers customers reasonable support packages. To get personalized support, the user can call, chat, and request a call back at a convenient time.

Salesforce: Salesforce ensures comprehensive customer service and support without compromising quality. They prioritize user assistance through online help tools, encouraging self-help before suggesting direct contact with a live agent. Additionally, users can call Salesforce directly or request a callback at their preferred time, demonstrating their commitment to providing effective support.

Expert opinion: Therefore regarding customer support, Microsoft Dynamics has the upper hand compared to the sales force because it is easier and faster to get a Microsoft agent on the phone than a Salesforce agent.

• Mobile Version

Microsoft Dynamics: The company offers mobile versions for tablets and smartphones. This is highly beneficial for engaging customers when one is not present on-premise. It is more useful for people who are always on the field. The mobile app boasts numerous tools; initially, it might appear crowded or overwhelming.

Salesforce: The mobile app of Salesforce is great and intuitive to use. It applies BI (Business Intelligence) tools via its AI tool known as Einstein. The app can be used for all business needs, such as case management, email marketing, and lead management. The user can customize it as per the requirements.

Expert opinion: If one considers the UI of the mobile application, many would prefer Salesforce over Microsoft Dynamics 365.

• Pricing

Microsoft Dynamics: The following are the pricing plans of Microsoft Dynamics 365

• The Sales Professional plan is $65 for a single user per month.
• The Sales Enterprise Plan is $95 for a single user per month
• The Sales Premium plan is $135 for a single user per month
• The Customer service professional plan is $50 for a single user per month
• The Microsoft relationship sales plan is $162 for a single user per month
• The marketing plan is $ 1500 for a single user per month
• The Customer service enterprise plan is $95 for a single user per month

Salesforce: The following are the various pricing plans of Salesforce

• The Sales Cloud Essentials plan costs $25  single user per month
• The Sales Cloud professional plan costs $75 for a single user per month
• The Sales Cloud enterprise plan costs $150 for a single user per month 
• The Sales Cloud unlimited plan costs $300 for a single user per month
• The Marketing Cloud Automation plan begins at $1250  single user per month
• Service cloud plan starts at $25 for a single user per month.  Note that Salesforce's billing cycle happens once every year

Expert opinion: After conducting a thorough cost analysis to encompass all essential features, Microsoft Dynamics emerges as the most cost-effective CRM solution

• Limitations

Microsoft Dynamics: Every platform has constraints, and so does Microsoft Dynamics. When dealing with Azure cloud storage space, acquiring additional capacity at an extra expense might be necessary. Additionally, there are certain restrictions on customization when it comes to modifying server code.

Salesforce: Customization is one of its major limitations. CRM has a few product limitations for small businesses compared to large enterprises. Salesforce's reporting capabilities may exhibit limitations, lacking the robustness of Microsoft's Power BI analytics suite. 

Expert opinion:  Though the limitation in a product is certain, Salesforce has fewer as compared to  Microsoft Dynamics. Moreover, the users of Microsoft Dynamics encourage users to stay within the Microsoft application ecosystem, Whereas Salesforce is more flexible.

• Market Share

Microsoft Dynamics: As per a rough estimate, Microsoft Dynamics has a market share of 7 to 9%. Approximately 10 thousand to 30 thousand companies use the platform.

Salesforce: Salesforce has been at the top position for years in CRM and occupies approximately 20% of the market share. Over 150,000 companies use the Salesforce platform. 

Expert opinion: Although these are bound to change with time, Salesforce dominates the market in terms of market share in the CRM industry.

• Integrations

Microsoft Dynamics 365:  It has the features of both ERP and CRM, which means they have a lot of functions. The user can connect many apps, but many outside applications won't work seamlessly with Microsoft. The user can also make simple add-ons with Microsoft PowerApps instead of trying to connect other applications. And if the user needs other apps, Microsoft's AppSource is an excellent resource for finding them.

Salesforce: It has a service known as AppExchange that helps users connect to experts, and they will guide them on the best integration. Otherwise, integrating with other applications is a complex procedure because of too many APIs.

Expert opinion: If the user aims to integrate the CRM with other applications like social media apps, sales forecasting applications of the third party, or other business processes, then Salesforce is the go-to CRM as compared to Microsoft Dynamics 365.

• E-commerce Tools

Microsoft Dynamics 365: Dynamics 365 Commerce is Microsoft's tool for managing online and offline stores. Microsoft Dynamics lets users engage with their customers throughout all the channels and leverage AI insights to increase sales. It is just a drag-and-drop tool for building online stores. 

Salesforce: Salesforce Commerce Cloud is the company's module designed for everything related to B2C (Business-to-Consumer). The user will get a set of various features for marketing automation. It is more focused on getting a conversion from the sales funnel. Users can build websites, set up promotions for the selected audience, and customize merchandise. Salesforce's Einstein AI comes along with the package for better observations and recommendations. 

Expert opinion: Salesforce wins among the two as the AI of Salesforce is user-friendly compared to Microsoft Dynamics 365. The effortless integration of marketing and sales provides a significant advantage for a business. 

• Linkedin Interoperability

Microsoft Dynamics 365: Microsoft Corporation acquired LinkedIn in 2016,  the business social engagement platform. Microsoft owns it as a subsidiary. The user can easily use the Sales Navigator feature of Linkedin by installing it in the Dynamics 365 platform. 

Salesforce: Although a Microsoft product, it can also be integrated easily with the Sales Navigator. It can assist with marketing campaigns by targeting potential buyers and managing opportunities to understand how leads are converted into customers. The integration functions seamlessly and effectively. 

Expert opinion: Microsoft Dynamics is the winner, owning the LinkedIn platform. Since Salesforce can also be integrated with Linkedin, It can assist with marketing campaigns by targeting potential buyers and managing opportunities to understand how leads are converted into customers. The integration functions seamlessly and effectively. 

• Learning

Microsoft Dynamics 365: Remember, Microsoft is a great product. It includes the customer service hub component. All the articles written will always be added to the knowledge base. The user can also use AI to provide suggestions for words and topics. 

Salesforce: The user must have unlimited or essential plans in the Salesforce service cloud to set up a knowledge base in Salesforce. You can also pay additional costs to get it for other modules. Salesforce aims to simplify the process for support representatives to create their articles and distribute them throughout the organization. 

Expert opinion: Microsoft Dynamics takes the lead and excels in learning. Microsoft Dynamics is slightly easier to set up in Salesforce.

Related Article: Salesforce Tutorial

What are the Pros and Cons of Microsoft Dynamics 365?

Pros

• Data centralization
• The user interface mirrors all Microsoft products, providing a familiar experience for those accustomed to using their software.
• Seamless integration with pre-existing products
• Merges seamlessly with the Microsoft Office suite. 

Cons

• Acquiring proficiency in the system demands an investment of time
• Adopting a modular and scalable approach entails additional costs.
• The cost of Dynamics can increase significantly as additional modules are incorporated.
• Individuals unfamiliar with Microsoft's user interface may encounter initial difficulties.

What are the Pros and Cons of Salesforce?

Pros

• Complete CRM
• Automation boosts efficiency and productivity.
• A large community fosters easy collaboration.
• Seamless integration with numerous business systems.
• Support from the team helps to leverage Salesforce without difficulty. 

Cons

• Limited data storage
• Challenges in Integration
• The mobile application has limited functionality
• The learning curve is  also steep

Frequently Asked Questions

1. Why Salesforce is better than Microsoft Dynamics?

Salesforce and Dynamics both have pros and cons. For instance, Salesforce has a vast collection of outside applications for its users than MS Dynamics. But if the user plans to stick with MS Dynamics for a while, they become economical in the long run.

2. Is Dymaincs cheaper compared to Salesforce?

Yes, if we compare both platforms, Salesforce is cheaper. The cost of Salesforce Sales Cloud is $25 per user monthly. On the other hand, Dynamics for professionals in sales costs $65 per user monthly.

3. What is the advantage of Microsoft Dynamics?

One of the most important advantages of using Microsoft Dynamics is that it helps organizations to shorten the sales cycle.

4. Can Salesforce be integrated with Microsoft Dynamics?

Yes, Salesforce can be integrated with Microsoft Dynamics. It will help optimize marketing, finance, and sales processes.

5. What is the knowledge-only user license type of Salesforce?  

This license only gives access to the knowledge application of Salesforce.

Conclusion

Salesforce and Microsoft Dynamics, both CRM platforms, have competitive advantages. If a company wants to be flexible, make things easy for users, and connect their CRM with other business apps, they should consider using Salesforce. Meanwhile, they should prefer Microsoft Dynamics if the organization wants customer support, detailed analytics, and LinkedIn integration. Hence, the choice depends on the business requirements, but a thorough analysis will help to choose the best! If you wish to explore Microsoft Dynamics and Salesforce more, you can check out the courses in MindMajix. It will help to gain better insights about the tools.