May 2, 2019

Microsoft Dynamics 365 vs. Salesforce

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Tags: CRM

This content has been updated for 2019

Coke vs. Pepsi, Edison vs. Tesla, sperm whales vs. giant squids . . . the world is full of famous rivalries that divide conversations and communities. In the end, a lot of these are toss-ups and probably don’t impact everyday life. The software you choose for your business, on the other hand, can determine how efficiently your teams work, the level of service your customers receive, and ultimately whether or not your business grows.

One of the long-standing rivalries in business IT is Microsoft Dynamics CRM vs. Salesforce, two leading customer relationship management (CRM) vendors whose solutions are strikingly hard to differentiate. There are certainly other megavendors that account for large portions of the CRM market, but because these two are so comparable in price, target business type, and user experience, they constantly end up pitted against each other.

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Top CRM software

Microsoft Dynamics 365 and Salesforce are both huge names in the CRM space, but they won’t be the right fit for every company. To make your search easier, here’s a short list of some of the top CRM platforms.

1 Salesforce

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Salesforce is a customizable customer relationship management (CRM) system that helps businesses of all sizes accelerate sales, automate tasks, and make more informed decisions to grow their businesses faster. Salesforce CRM allows your sales team to access real-time customer information in one place, plus pull insights from dashboards and reports. Sales Cloud can also be used to manage lead and contact management, sales opportunity management, and workflow rules and automation.

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2 MS Dynamics

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Microsoft Dynamics CRM's automated features and AI help sales teams better understand their customers, know the best time to send an email, and monitor social channels better than ever before. MS Dynamics also includes a direct connection to the business social platform LinkedIn. Their core CRM package—Dynamics 365 Sales—is focused on sales force automation and helping teams find and close opportunities, and comes as a single tool or can be bundled with other business operations tools.

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3 Hubspot

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HubSpot CRM is everything users need to organize, manage, track contacts, and build better relationships with customers. Eliminate spreadsheets, manage pipeline, get better customer insights, and speed up sales. The CRM will also let your entire company operate off of one source of truth about the contacts in your database instead of sharing spreadsheets or finding emails. Every interaction is stored in a timeline, including notes about the contact and the content they’ve consumed.

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4 Zoho

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Zoho CRM is a cloud-based application that includes tools for pipeline management, collaboration, marketing automation, analytics, artificial intelligence, and more. Zoho offers a full suite of developer tools, including a REST API, a Developer Edition of Zoho CRM, and web and mobile SDKs. Zoho also supports integrations for Google Drive, DocuSign, Mailchimp, LinkedIn, and more. Marketing automation in Zoho helps sales teams generate new leads, create ad campaigns, and manage email campaigns.

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5 Pipedrive

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Pipedrive is a customer relationship management (CRM) software for businesses of any size. This tool helps salespeople focus on the best opportunities by showing them overviews of their sales process and by giving them access to pipeline management tools. Pipedrive provides CRM, sales forecasting and reporting, activities and goals, mobile apps, email integration, and products in addition to a library of educational resources, including Pipedrive Academy for learning the software.

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6 Nimble

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Nimble combines the strength of a traditional CRM with contact management, social media, sales intelligence, and marketing automation to deliver relationship insights to help professionals build better work relationships in a multi-channel world. The software integrates productivity apps to gather user contacts, communications, calendar, and collaborations in one platform and draws data from popular social media channels including Facebook, LinkedIn, and Twitter.

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7 Apptivo

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Apptivo is a powerful sales & marketing tool. This CRM includes lead management, an opportunity pipeline with intuitive dashboards, campaign management, and flexible workflow tools including marketing automation. Apptivo starts with a simple contact management system with slick integrations such as automated email conversation tracking, or automated call logging. We offer a complete set of sales tools for lead management, activity tracking, pipeline visualization, and automated workflow.

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8 Insightly

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Insightly is a customer relationship management software for small to medium sized businesses. Built specifically to help businesses increase customer loyalty, Insightly offers marketing in addition to sales features. Such features include lead routing, workflow automation, email, interaction documentation, role permissions, no-code application development, mobile apps, and analytics dashboards. Insightly helps sales teams discover new leads and convert them into loyal customers.

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9 Copper

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Copper is a CRM solution designed for native integration with G Suite. Copper aids sales productivity through lead management by automatically pulling data from Gmail, enabling companies to transform leads into customers. Copper includes contact management, which lets users find contacts and nurture business relationships. Copper also offers visual pipeline management through customizable pipelines that allow users to visualize the progress of each deal.

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10 Less Annoying

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Less Annoying CRM (LACRM) is a simple CRM built from the ground up for small businesses. Manage contacts, leads, notes, calendar, to-do’s and more, all from one simple web application. Less Annoying CRM is founded on three core principles: simplicity, affordability, and outstanding customer service. All of the tools and information are easy to find from any page in the CRM. LACRM was designed specifically to be intuitive, even for users who aren’t tech-savvy.

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Microsoft Dynamics 365 vs. Salesforce

We’ve taken an in depth look at these two CRM systems, and we’re laying out our findings in this side-by-side product comparison.

Microsoft Dynamics 365 Salesforce
Average user rating 3.25/5 4.1/5
QUICK FACTS
Pricing Mid to high-end High-end
Works best for Medium to enterprise Medium to enterprise
CORE CRM FEATURES
Reporting/analytics Yes Yes
Accounts/contacts Yes Yes
Lead management Yes Yes
Sales forecasting Yes Yes
Case management Yes Yes
Marketing automation Requires add-on Requires add-on
Social CRM Yes Yes
Enterprise social networking Yes Yes
Territory management Yes Yes
Sales performance management No Yes
Customer self-service portal Yes Yes
App marketplace Yes Yes
Conferencing/IM Yes Yes
Partner management No Yes
Email interoperability Yes Yes
Custom workflows Yes Yes
Time tracking No Yes
STUFF IT NEEDS TO KNOW
Cloud platform Yes Yes
Onsite available Yes No
Native mobile app(s) Yes Yes
Access controls Yes Yes
API Web services API SOAP API
Data governance No Yes

Click here to download this table as an image.

Systems and Pricing

With both vendors, there are a number of ways to assemble a system.

The nucleus of Salesforce’s CRM system is Sales Cloud, a web-based application that helps companies leverage multi-channel relationships for business growth. Salesforce also offers Service Cloud (for customer service and case management) and marketing automation through their Marketing Cloud applications.

Businesses have the option of choosing any of these individual modules or bundling them together and paying a lump sum per month for the full platform. Marketing Cloud or the B2B marketing automation software Pardot is cost-intensive as an add-on, but Salesforce does offer a Sales and Service Cloud bundle at a more comparable industry price.

The packaging for Microsoft Dynamics 365 is a bit different. Microsoft has expanded their business operations options significantly over the past several years to allow companies to scale their usage of the products up to ERP capabilities. Their core CRM package—Dynamics 365 Sales—is focused on sales force automation and helping teams find and close opportunities, and comes as a single tool or can be bundled with other business operations tools. The Customer Engagement plan bundles sales, service, field service, project automation, marketing, and social engagement tools. The Unified Operations Plan brings together finance and ops, talent management, and retail features. The full platform combines all of the separate features into the Dynamics 365 tool.

We examined Salesforce and Microsoft Dynamics on the basis of their sales + service editions (Salesforce Sales and Service Cloud bundle; Dynamics Customer Engagement Plan).

Watch our video review of Salesforce:

 

How They’re Similar

The core feature sets for both sales and service systems are extremely similar. Both products can easily handle contact and account management, social customer service, territory management, and sales forecasting. This similarity can probably be attributed to the fact that these vendors know each other’s products very well and have an “anything you can do, I can do better” relationship.

Both systems also offer their own app marketplaces, where you can choose from thousands of additional business tools that extend your CRM’s usability or better align it with your industry. Since they’re primarily licensed in software-as-a-service versions, Salesforce and Microsoft Dynamics can scale in both directions depending on your functionality needs and business size, although they’re more commonly used by large or rapidly-growing companies.

How They’re Different

Platform

Salesforce was built from the ground up to operate as a cloud application. That’s great if you’re gung-ho about storing your data on a remote server and using browser-based and mobile-ready software, but not so great if you’d rather own the license outright and host the software on your own servers.

Microsoft Dynamics 365 is a little more flexible when it comes to implementation: they offer Sales and Service in a fully cloud-based edition, while other options in the 365 universe like Finance and Operations come with optional on-premise versions. The move to mostly cloud hosted versions of the product came about in the last few years as more companies rely on public and private hosting and fewer demand on-premise server boxes.

Integrations and Elasticity

Usually, the general consensus is that Salesforce has the upper hand when it comes to building your CRM out or optimizing it for use in specific industries. There are over 2,600 apps available in the Salesforce AppExchange. Salesforce also has its own partner program and connected platforms, which helps businesses and in-house developers build custom solutions on the Salesforce platform.

The Microsoft AppSource has invested heavily in app connections, and is gaining on Salesforce’s selection. The larger Dynamics 365 platform also offers connections to Microsoft Power BI and PowerApps, software that lets teams turn their data and current connections into custom apps. Your company’s current investment in Microsoft software solutions really might win the fight for you in terms of integrations and flexibility.

Salesforce does connect to several Microsoft apps, but the native connections you would get from Dynamics 365 have their advantages. However, if your team is looking for connections with lots of different apps and software, Salesforce can integrate well with most apps.

Watch our video review of Dynamics CRM:

Features

The 2015 update of Microsoft Dynamics CRM raised the bar in several feature areas, and Microsoft’s investment in automation since then has really improved the Customer Engagement Plan tools for Sales and Service. Automated features and AI help sales teams better understand their customers, know the best time to send an email, and monitor social channels better than ever before. And now that Microsoft owns LinkedIn, they’ve stepped up social selling features to include a direct connection to the business social platform.

However, there are still a few things Salesforce can do that Dynamics can’t. If you read the comparison above, you likely noticed the blanks across from sales performance management, partner management, and data governance tools. Depending on your company’s size, data needs, and global reach these may or may not be deal-breakers for you.

  • Data governance tools help you cleanse and de-duplicate your contact records and sales entries, which can be an important asset if you have more than a few data entry points (web forms, contact centers, onsite/retail locations, e-commerce).
  • Partner management is for larger organizations with outsourced contact centers or regional product resellers. It helps management track operations remotely and gives third-party agents access to system content, customer databases, and product information.
  • Performance management helps coaches and managers incentivize sales achievment through KPI monitoring, rewards and recognition tools, and built-in feedback loops (it should be noted that the Salesforce sales performance module is provided through Work.com at an additional charge per month).

Artificial and Automated Intelligence

Some of the features that really set Microsoft Dynamics Customer Engagement and Salesforce apart from the rest of the CRM pack are those related to artificial intelligence (AI) and automated intelligence features. Both Salesforce and Microsoft have the enterprise-level resources available to build or acquire AI tools that help make their sales and service tools smarter.

In September 2017, Microsoft renewed its commitment to AI by announcing that they would release AI tools as added features for many enterprise and existing Dynamics and Office 365 products. AI is integrated with the Dynamics 365 product in both the Sales and Service modules, providing natural language parsing and intelligent sales predictions. A these tools increase the speed of business for many companies, you’ll see AI rolled out to more Microsoft tools.

Salesforce beat out Microsoft by a hair by implementing their Einstein AI in Spring of 2017. Einstein uses artificial intelligence learning algorithms to understand each company’s particular selling habits and suggests improvements. When implemented on the service and marketing tools, Einstein can suggest answers to customer questions or guide marketers to the most effective strategies. The tool can run seamlessly with Salesforce, but is currently an add-on cost.

Conclusion

Neither of these two CRMs is necessarily “better” than the other. Both offer industry-leading features and a scalable platform, as well as the ability to custom-build a unique solution with optional modules and add-ons from their online stores. Your decision should be based on what business systems you already have in place, what features your teams can use to excel, and how much you’re willing to spend.

If you’d like to learn more about Dynamics, Salesforce, or any other CRM systems, we’re here to help. Use the product selection tool for customer relationship management software on our site to find a list of the best vendors for your business, or call one of our product experts for a free consultation.

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