Dynamics 365 CRM vs traditional CRM: Which is right for you?

CRM is a software tool for managing a company’s customer relationships, including sales, marketing, and customer care. In the current digital era, businesses use a CRM system to remain competitive and fulfil their consumers’ changing expectations. 

Businesses frequently face the difficulty of selecting between Dynamics 365 CRM and traditional CRM because of the large number of choices in the market.

Microsoft’s Dynamics 365 CRM is a flexible and comprehensive system that integrates CRM functionalities on a single platform, offering both cloud-based and on-premise options. It includes sophisticated features like AI-powered analytics, mobile accessibility, and customization possibilities to meet each organisation’s specific requirements.

On the other hand, traditional solutions are often on-premise software that organizations install and operate themselves. Often more fundamental, these systems include contact management, sales automation, and reporting. 

This article will tell you how to choose between Dynamics 365 CRM and traditional CRM systems, outlining the features of each. 

Dynamics 365 CRM and Its Features

Dynamics 365 CRM is a cloud-based customer relationship management (CRM) system. It is a collection of integrated, data-driven software solutions that facilitate managing, tracking, and storing customer relationship data.

It is a database that helps firms organize and manage their client and lead information. Users may contact consumers and prospects using the program, which logs and tracks every customer interaction.

This enables a firm to construct a comprehensive picture of its customer relationships allowing personalization of the customer journey.

The following are some of the features of Dynamics 365 CRM

1. Cloud-Based Deployment

The cloud-based implementation of Dynamics 365 CRM is crucial. This allows organizations to access their CRM data from any location, at any time, using any device, as long as they have an internet connection.
This eliminates the need for companies to maintain their hardware and software, cutting their IT expenses and allowing them to concentrate on their core business activities.

2. Compatibility with Microsoft Office

The interface enables smooth collaboration between Dynamics 365 CRM and productivity programs such as Outlook, Excel, and Word. This increases efficiency, which allows companies to use their existing Microsoft investments and minimizes the need for extra third-party interfaces.

3. AI-Powered Insights

The program provides AI-powered insights that give enterprises important data analytics and reporting capabilities. The technology uses artificial intelligence (AI) to uncover patterns and trends in consumer behavior, which lets organizations understand their customers better and make decisions based on data.

Traditional CRM and Its Featuress

Traditional CRM is a business strategy software implemented through a collection of apps. Simply said, it enables the organization to manage connections and data more effectively.

The program improves data management, automates sales and marketing operations, and aids in monitoring clients’ behaviour and communication histories. Unlike Dynamics 365 CRM, traditional CRM requires companies to store and manage their CRM data using their IT infrastructure.

The following are the features of Traditional CRM:

1. On-Premise Deployment

This gives companies greater control over their data. Companies may keep their data locally, allowing them to comply with data protection and security regulations. This also grants direct control over company data.

2. Customizable Functionality

Traditional CRM solutions may be extensively tailored to individual business requirements, including contact management, sales automation, and reporting. This level of customization allows firms to adjust their CRM software to their needs and preferences, which enhances their overall efficiency and productivity.

3. Integration

Traditional CRM solutions provide firms with the ability to link with additional software. This allows organizations to communicate data between their CRM and other software applications, including accounting, marketing automation, and e-commerce platforms.

How to choose which CRM is more suitable for you

The choice between Dynamics 365 CRM and traditional CRM depends on your company’s unique requirements, budget, and available resources. Here are some important considerations:

1. Integration Capabilities

Implementing a new system is time-consuming and rarely a smooth process. It is, therefore, essential to pick a CRM that complements or enhances your present structure. Both Dynamics 365 CRM and traditional CRM can integrate with additional software applications.

Dynamics 365 CRM provides greater out-of-the-box connectivity possibilities with other Microsoft programs, such as Microsoft Office. In contrast, traditional CRM may require more development to interact with other software applications.

2. Cost

Costs and budgets play a significant role in every organization. CRMs can necessitate substantial financial and time commitments; therefore, it is essential to understand just what you are signing up for.

Subscription-based Dynamics 365 CRM may be an easy option for Mid-sized and large organizations. On the other hand, traditional CRM involves a one-time license price and continuous maintenance fees, which may be less expensive for smaller organizations.

3. Deployment model

Traditional CRM is an on-premises solution, whereas Dynamics 365 CRM is a cloud-based solution. If you prefer the adaptability and portability of a cloud-based solution, Dynamics 365 CRM may be a good fit for you. Organisations can simply scale their CRM capabilities based on their evolving requirements with the cloud-based deployment of D365 CRM. Moreover, cloud-based deployment enables users to access Dynamics 365 CRM from any location, device, or time. This mobility enables sales teams, customer service agents, and other CRM users to maintain connectivity and productivity.

If you demand greater control over your data and have the IT resources to run an on-premise system, on the other hand, traditional CRM may be a better option.

4. Scalability

When your company grows or develops, D365 CRM can be scaled up or down more quickly. Scaling up traditional CRM may need considerable IT resources and infrastructure.

5. Customization

Traditional CRM has broader customization possibilities, which may be adjusted to your business’s exact requirements. D365 CRM also allows some degree of customization. Dynamics 365 CRM provides a flexible and adaptable data model that enables businesses to define and structure their data according to their specific requirements. Moreover, Dynamics 365 CRM provides a robust workflow engine that enables organisations to automate and streamline business processes.

Organisations can also define business principles and process flows within D365 CRM to direct users through predefined steps and enforce consistent behaviour.


Both types of CRM provide distinctive features, and the choice will ultimately depend on your business’s needs, price, and available resources. Dynamics 365 CRM is a more scalable alternative for mid-sized and large firms, whereas traditional CRM provides better data customization and management for small firms.
It is essential to assess your alternatives thoroughly and select the CRM system that best corresponds with your business objectives.

At Zelite, we are committed to assisting businesses in implementing the CRM system that best meets their requirements. We provide experienced consultancy, installation, and support services to guarantee a smooth transition and effective adoption, regardless of whether you pick Dynamics 365 CRM or a traditional CRM system.

Our specialists work directly with you to comprehend your business’s specific requirements. Contact us today to learn more about how we can assist you in adopting the optimal CRM solution.

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