What is Dynamics 365 Customer Engagement?

Managing Customer Relationships Shouldn’t Be This Hard!

Juggling multiple tools just to keep up with customers?

It’s frustrating when service requests get lost, sales data is scattered, and finding the right information takes longer than solving the actual issue. You wouldn’t want a phone that only makes calls, a calendar that doesn’t sync across devices, or a smart assistant that can’t answer simple questions. So why settle for a CRM that doesn’t do it all?

Microsoft Dynamics 365 Customer Engagement (CE) is built to be your one-stop shop for managing customer relationships. Instead of switching between disconnected systems, you get a single platform that brings together:

• Sales – Track leads, manage pipelines, and close deals with real-time insights.
• Customer Service – Handle inquiries, automate responses, and resolve cases faster.
• Marketing – Personalize campaigns and nurture relationships effectively.
• Field Service – Schedule technicians, optimize routes, and improve service delivery.
• Project Operations – Keep projects on track with collaboration tools and financial visibility.

If you’re constantly chasing down customer details, struggling to provide quick responses, or dealing with disjointed service experiences, it’s time for a system that works as seamlessly as the technology you rely on every day.

What is Microsoft Dynamics 365 Customer Engagement (CE)?

Microsoft Dynamics 365 Customer Engagement is a cloud-based customer relationship management solution designed to help businesses improve customer interactions, streamline service delivery, and enhance marketing efforts.

It integrates with various business functions, including Sales, Marketing, Customer Service, Field Service, and Project Operations.

Being a unified platform, Dynamics 365 CE ensures that businesses get a 360-degree view of their customers, allowing teams to collaborate better, make informed decisions, and deliver personalized experiences.

Moreover, by integrating seamlessly with other Microsoft tools like Outlook, Excel, and Teams, it strengthens the connection between departments and offers real-time insights that drive better customer outcomes.

Dynamics 365 CE vs. CRM: Key Differences and Upgrades

When it comes to customer relationship management software, Microsoft offers two major options: Dynamics CRM and Dynamics 365 Customer Engagement (CE). Both are powerful solutions designed to enhance customer interactions, streamline sales processes, and improve service delivery.

However, Dynamics 365 CE builds on its predecessor, introducing a host of improvements, new features, and capabilities that make it a compelling upgrade for businesses looking to stay competitive in a fast-evolving digital landscape.

Here’s a breakdown of the key differences and upgrades that Dynamics 365 CE offers over Dynamics CRM.

1. Advanced AI and Machine Learning Capabilities

One of the standout features of Dynamics 365 CE is its integration of artificial intelligence (AI) and machine learning. Unlike Dynamics CRM, which lacked these advanced capabilities, Dynamics 365 CE includes tools that leverage AI to predict customer behavior, identify sales opportunities, and provide data-driven insights.

For example, the relationship assistant in Dynamics 365 uses AI algorithms to track customer interactions and recommend actions, such as the next best step for engaging a prospect or re-engaging with a dormant customer.

2. Enhanced User Interface

Dynamics 365 CE offers a more streamlined user interface (UI) compared to Dynamics CRM 2016. Microsoft has made significant updates to its UI, providing a more consistent and intuitive experience across various devices and platforms. The new interface ensures that sales, service, and marketing teams can quickly access the data they need to make decisions, saving time and enhancing productivity.

3. Deeper Integration with LinkedIn

While Dynamics CRM 2016 had some integration with LinkedIn, Dynamics 365 CE takes this to the next level. With the acquisition of LinkedIn, Microsoft has fully integrated its CRM platform with the world’s largest professional networking site. This integration allows sales teams to gain valuable insights into prospects, view LinkedIn profiles directly within the CRM, and use LinkedIn data to improve prospecting and lead generation efforts. This added functionality significantly enhances the ability to nurture customer relationships and identify new business opportunities.

4. Gamification to Boost Sales Team Engagement

Dynamics 365 CE enhances gamification beyond traditional CRM by offering a built-in gamification module that enables businesses to create customized challenges, leaderboards, and competitions tailored to sales KPIs. Unlike Dynamics CRM, which required third-party tools for gamification, CE integrates AI-driven insights, real-time performance tracking, and seamless collaboration via Microsoft Teams.

5. Scalability and Flexibility

Unlike Dynamics CRM, which bundled multiple functionalities together, Dynamics 365 CE introduces a modular approach, allowing businesses to choose only the applications they need—whether it’s Sales, Customer Service, Marketing, Field Service, or Project Operations. This provides greater flexibility compared to Dynamics CRM, where adding new capabilities often meant purchasing a broader suite.

With Dynamics 365 CE, businesses can scale their CRM solution gradually, integrating additional modules as their needs evolve, rather than committing to an all-in-one package upfront. Since it’s cloud-based, users can also expand storage, leverage Power Platform integrations, and incorporate AI-driven insights for enhanced decision-making.

6. Seamless Integration with Microsoft 365 and Other Tools

Both Dynamics CRM and Dynamics 365 CE integrate with Microsoft tools like Outlook, Excel, and Word, but Dynamics 365 CE extends this connectivity to a broader ecosystem. It offers seamless integration with the entire Microsoft 365 suite, including Teams, OneDrive, and Power BI, enabling real-time collaboration, document sharing, and advanced analytics.

This deeper integration eliminates data silos, ensuring a smooth flow of information across departments. Whether managing customer service cases, tracking sales leads, or analyzing marketing campaigns, users can access and update data directly within familiar Microsoft applications.

7. Cost-Effective Licensing

Dynamics 365 CE offers a more cost-effective licensing model compared to Dynamics CRM. With Dynamics CRM, businesses often paid for features they didn’t use, which led to unnecessary costs. In contrast, Dynamics 365 CE allows businesses to purchase only the modules they need, making it a more cost-effective option. Additionally, with two main license tiers (Team Member and Full User), organizations can tailor their pricing plans based on the functionality they require, offering greater flexibility and potential savings.

Dynamics 365 Customer Engagement Features

Here are the top features of Dynamics 365 CE that enhance sales, customer service, field operations, and customer insights, helping businesses drive efficiency and engagement:

Sales Automation

The Sales module within Dynamics 365 CE helps sales teams effectively manage leads, opportunities, and customer interactions. It provides valuable insights into customer preferences, allowing salespeople to engage with the right information at the right time, thus improving conversion rates and closing deals faster.

Customer Service Excellence

The Customer Service module allows organizations to handle cases efficiently, provide knowledge base resources, and ensure consistent communication with customers across multiple channels. It helps your customer service team deliver quick and efficient resolutions, leading to higher customer satisfaction.

Field Service Optimization

The Field Service module streamlines field service operations by automating work orders, dispatching technicians, tracking service calls, and providing real-time updates. This leads to enhanced service delivery, fewer delays, and increased customer loyalty.

Customer Insights for Personalization

Dynamics 365 Customer Insights helps businesses build personalized experiences by unifying customer data from multiple sources. By understanding customer preferences and behavior patterns, businesses can target customers with tailored messaging and offers, improving retention and loyalty.

Project Operations Management

The Project Operations module empowers project teams to plan, execute, and track projects efficiently. It enhances collaboration, ensures resource optimization, and provides complete visibility into project timelines and budgets.

How Does Dynamics 365 CE Benefit Your Business?

Here are some of the key benefits of Dynamics 365 CE that businesses can leverage to streamline operations, enhance customer interactions, and drive growth.

Streamlined Sales and Marketing Alignment

One of the standout benefits of Dynamics 365 CE is the seamless integration between sales and marketing teams. This integration ensures that both departments are aligned, allowing them to work together effortlessly.

• Smart Timing for Buyer Engagement: Engage potential customers when they are most likely to be interested, using their preferred communication channels, whether that’s email, phone, or social media.
• Tailored Customer Updates: Deliver updates at the right time and through the most effective medium, ensuring that each interaction is relevant and timely.
• Effective Lead Nurturing: Prioritize and nurture leads efficiently, ensuring a smooth transition from marketing to sales, resulting in higher conversion rates.

Increased Sales Productivity

Dynamics 365 CE boosts sales productivity by equipping sales teams with the tools they need to close deals faster. Key features include:

• Forecasting and Planning: Sales teams can predict future sales, budget accurately, and plan accordingly for the future.
• Streamlined Sales Processes: Automate the sales process from lead creation to deal closure, reducing manual work and increasing speed.
• Mobile Flexibility: Sales reps can access real-time customer data from anywhere, allowing them to work on the go.
• Centralized Customer Data: All customer information is stored in one place, ensuring that sales teams have access to the most up-to-date and accurate data for better decision-making.

Customer Service Excellence

A great customer experience is based on delivering personalized and timely service. With Dynamics 365 CE, businesses can exceed customer expectations with:

• Real-Time Insights: Gain valuable insights into customer journeys, allowing you to anticipate customer needs and be proactive in meeting their demands.
• 24/7 Customer Access: Customers have the ability to access their data through self-service portals, allowing them to resolve issues at any time.
• Complete Customer History: A 360-degree view of customers ensures that your customer service teams have all the information they need to resolve issues quickly and effectively.

Empowering Customers with Self-Service

Dynamics 365 Customer Engagement takes customer service to the next level with its self-service capabilities. Empower your customers to:

• Create and Review Requests: Customers can track their orders, submit support requests, and resolve issues without needing to contact customer support.
• Update Their Own Data: Customers can manage and update their own data, ensuring more accurate records while reducing the need for manual updates.
• Access Automated Contact Forms: Automated forms speed up response times and allow customers to quickly get the information they need, improving the overall experience.

Enhanced Customer Retention and Loyalty

Dynamics 365 CE helps businesses build lasting relationships with customers through personalized experiences and insights:

• Customer History Tracking: Gain a deep understanding of each customer’s history and interactions, allowing you to predict their needs and tailor your communications accordingly.
• Loyalty Programs: Personalize incentives and rewards to encourage repeat business, boosting customer retention and long-term loyalty.
• Proactive Customer Engagement: Use available data to identify at-risk customers and engage with them before they churn, ensuring customer satisfaction and reducing attrition rates.

Dynamics 365 CE Implementation Steps

Here are some of the key steps to successfully implement and optimize Dynamics 365 CE, from pre-implementation planning to post-launch fine-tuning.

Pre-Implementation for Laying the Foundation

Before diving into the technical aspects of implementing Dynamics 365 CE, it’s crucial to ensure that your organization is well-prepared. The first step in any successful implementation involves aligning your team with the project’s goals and defining clear roles and responsibilities. Key preparation steps include:

Data Preparation

Clean, organized data is the backbone of any successful CRM implementation. Take the time to review your existing data, identify any duplicates, and structure it appropriately for import into Dynamics 365. Using a well-organized Excel format can be a great start to consolidating and preparing your data for migration.

Process Mapping

Define your existing processes for sales, service, and marketing. This is crucial for understanding how Dynamics 365 will integrate with your current workflows. By identifying gaps, inefficiencies, and improvement opportunities, you can tailor Dynamics 365 to meet your specific needs.

Team Buy-In

Successful adoption of Dynamics 365 CE requires commitment from all levels of the organization. Ensure that your team members are engaged from the start and identify key stakeholders who will advocate for the project within their departments. This helps drive user adoption and fosters a culture of collaboration.

Configure System Based On Your Requirements

Once the groundwork is laid, it’s time to move forward with the actual implementation. This phase involves configuring Dynamics 365 to meet the specific needs of your organization. Below are the core components involved in a typical Dynamics 365 CE implementation:

Subscription Setup and Configuration

The first technical step involves setting up your Dynamics 365 CE subscription and configuring the system for your organization. This includes setting up the environment (online or on-premises), creating user accounts, defining roles, and determining security permissions.

System Configuration

This step is about tailoring Dynamics 365 to fit your workflows. Configuration includes defining entities (such as accounts, contacts, leads, and opportunities), customizing forms, creating views, and defining sales processes.

Integrating Microsoft Tools

One of the key advantages of Dynamics 365 CE is its seamless integration with other Microsoft tools like Outlook, Excel, Teams, and OneNote. Configuring these integrations ensures that your teams can easily access data across applications, improving collaboration and efficiency.

Data Migration

Moving your existing customer data into Dynamics 365 CE is a critical step. Using tools like the Data Import Wizard, your data will be transferred into the system from your legacy platforms.

Customization

While the standard functionality of Dynamics 365 is powerful, it’s likely that your organization will require customizations such as creating custom entities, workflows, or business rules.

Training and Knowledge Transfer

Training is a crucial aspect of ensuring that your team can fully leverage the capabilities of Dynamics 365. During the implementation phase, you’ll need to:

Administrator Training

Equip your system administrators with the knowledge needed to configure the system, manage user roles, and make minor adjustments to settings as needed.

End-User Training

Provide training sessions for end-users, ensuring that they are comfortable navigating the interface, managing their tasks, and using key features.

Ongoing Support

Ensure that your team has access to ongoing support and resources, whether through in-house expertise or external consulting partners.

Fine-Tune And Optimize Post-Implementation

Once Dynamics 365 CE is up and running, your organization should focus on optimizing the system and fine-tuning it based on feedback from users. Key post-implementation steps include:

Monitor User Adoption

Pay attention to how users are interacting with the system. Are there areas of the platform that they are underusing? Use feedback to make adjustments.

System Optimization

Continually monitor the system and explore opportunities to automate tasks, improve workflows, and enhance customer experiences.

Performance Tracking

Implement performance tracking to measure key metrics such as sales conversion rates, customer satisfaction, and service efficiency.

Dynamics 365 Customer Engagement Pricing and Licensing

Microsoft Dynamics 365 offers a flexible and scalable pricing structure to meet the diverse needs of businesses.

User Subscription License (User SL)

The User Subscription License is the most commonly selected type, providing individual users with unique login credentials.

• Full User: Complete access to all features.
• Additional User: Extra licenses for more users with similar access.
• Team Member: Limited access, such as viewing records and adding notes.

Device Subscription License (Device SL)

Allows multiple users to access Dynamics 365 from a single licensed device.

Tenant-Based Subscription License (Tenant SL)

Provides a single license for the entire tenant, beneficial for enterprises with multiple users.

Pricing Breakdown

Dynamics 365 provides the flexibility to purchase specific applications based on business needs.

Base Licenses (Pricing for full users)

• Sales Enterprise: $95 per user/month
• Customer Service Enterprise: $95 per user/month
• Field Service: $95 per user/month
• Customer Insights: $1700 per tenant/month (new users); $1000 per tenant/month (discounted)
• Sales Professional: $65 per user/month
• Customer Service Professional: $50 per user/month
• Project Service Automation: $120 per user/month

Attach Licenses (Pricing for additional functionality)

• Sales Enterprise: $20 per user/month
• Customer Service Enterprise: $20 per user/month
• Field Service: $20 per user/month
• Customer Insights: $1000 per tenant/month
• Sales Professional: $20 per user/month
• Customer Service Professional: $20 per user/month

For example, a company that only needs Sales Enterprise features can opt for the Sales Enterprise Base License and purchase an Attach License for Customer Service Enterprise.

Conclusion

At Nalashaa Digital, we understand how crucial it is to provide a seamless experience across every aspect of your business. With Dynamics 365 Customer Engagement, you gain access to powerful applications designed to enhance customer interactions, whether it's identifying prospects through Sales and Marketing, or offering top-tier customer support through Service and Field Service applications.

As a dedicated Dynamics 365 Service provider, we help businesses fully leverage the potential of Dynamics 365 to create lasting relationships and deliver exceptional customer experiences.