As you probably already know Microsoft Dynamics CRM is one of the key areas we work within Kalpavruksh. Recently we embarked on a mission to find out more about the CRM market and the potential it holds. Here are some of our findings:

Insights:

• Microsoft Dynamics CRM holds a 4.3% market share
• 20% revenue increase
• Over $1.14 Billion in revenue

Overview:

The highlights of our research conclude that as of a 2015 Gartner study Microsoft Dynamics CRM was the second fastest growing CRM provider. They hold 4.3% of the market share with hundreds of competitors bringing in over $1.14 billion in revenue in 2015 which was a 20% increase from 2014.

Market Growth:

The overall CRM market is experiencing exponential growth with Microsoft Dynamics being the second fastest growing provider. The CRM global market grew 13.3% from 2013-2014, however, Microsoft Dynamics CRM revenue grew 21.7% in the same time frame. They maintained an above average growth form 2014-2015 at a 20% revenue increase. Microsoft’s strategy is to make strong investments, focus on providing a superior product, and providing a competitive price point. The CRM global market reached sales of over $23 billion in 2014, this is predicted to rise to $36.5 billion in 2017, it is very likely that Microsoft Dynamics CRM will maintain this same steady increase in growth.

In their efforts to continue their current rate of growth and development Microsoft intends to continue to make all of their programs work well together including an intent to create Microsoft Dynamics 365 CRM, a program that works with Office 365.

The Consumer:

Customer reviews and surveys revealed that 51% of users recommend Microsoft Dynamics CRM. While the target market for this product is business ranging from 1 employee to businesses with over 1000 employees studies show that Microsoft has the highest success with businesses with 1-100 employees. When compared with the top 5 CRM providers Microsoft took 28% of the market share in businesses with 1-100 employees. This percentage went down to 20.5% in businesses with 101-1000 employees and 17.7% in businesses with over 1000 employees.

Microsoft has a wide variety of clients running their CRM software. Some of the clientele include well-known businesses such as Gorilla Glue Company, Fastenal, and Synergis Education, Inc. The product appeals to a very wide variety of clients as well such as funeral homes, pharmaceutical companies, transit authorities, and golf performance tracking companies.

The Competition:

Salesforce is Microsoft Dynamics greatest competitor. However, customer reviews revealed that Salesforce had an interface that was not keeping up with technology as well as Microsoft Dynamics. This could be attributed to the fact that when Salesforce started there was no available technology and they had to develop it themselves while Microsoft came into the business with technology readily available to them.

Because of this, pre-owned technology programs such as Office work seamlessly with Microsoft Dynamics CRM. Also, while Salesforce is cloud-based only, Microsoft Dynamics CRM has the option of online, on-premise, or private hosting. This gives Microsoft a significant advantage over Salesforce. Some consumers feel the ease of use was more favorable with Microsoft Dynamics. Also, Microsoft’s competitive pricing held it in a more favorable position with consumers.

Conclusion:

Microsoft Dynamics is a rapidly growing provider and a valuable tool to businesses with ease of use and practicality to consumers. With an above average 21.7% revenue increase from 2013-2014 and a 20% revenue increase from 2014-2015 Microsoft proves they are serious about a superior product and continued growth. Microsoft Dynamics CRM has a promising projected evolution as it continues to integrate more of the Microsoft products and technology to create the best product available.