Business Central CRM: Features, Comparison & Dynamics 365 Sales Integration for Australian SMEs

Microsoft Dynamics 365 Business Central CRM is the integrated customer relationship management capabilities within the ERP system, designed to unify finance, operations, and CRM under one system. For Australian SMEs, it offers a lean yet functional alternative to full-scale CRM systems, particularly when operational cohesion is a priority.

This article provides a deep dive into Business Central CRM’s core features, strengths and limitations versus Dynamics 365 Sales, and integration pathways between the two, specifically tailored for Australian SMEs.

Supplementing this, we briefly assess Australian compliance needs, compare Business Central CRM with tools like Excel, Zoho, Salesforce, and HubSpot, and highlight its advantages in scalability, automation, and reporting.

CRM Features in Business Central

Business Central CRM provides a comprehensive suite of functionalities designed to manage sales, marketing, and customer relationships efficiently within a unified business management platform. This integrated system provides tools for detailed contact organisation, sales pipeline tracking, targeted campaign execution, robust reporting, and seamless integration with the broader Microsoft ecosystem.

1. Contact & Relationship Management

Business Central CRM streamlines contact and relationship management by providing comprehensive tools for organising and tracking all interactions with business contacts. This includes maintaining detailed customer histories and logging all communication to ensure a complete overview of every client relationship and engagement.

• Contact Organisation: Businesses can create and manage contacts, categorising them as either 'Person' or 'Company'
• Customer History: The system automatically records interactions with contacts, providing a detailed history of communications
• Communication Logs: Interactions, such as emails and phone calls, can be manually or automatically recorded. It is also possible to attach documents to interactions
• Duplicate Record Merging: To maintain data integrity, Business Central allows for the merging of duplicate contact records
• Profile Questionnaires: Businesses can use profile questionnaires to classify and understand their business contacts better.

2. Sales Opportunities & Pipeline Tracking

Business Central CRM helps track opportunities and pipeline by facilitating comprehensive sales management from lead identification to closure. It enables businesses to visualise their sales processes, efficiently prioritise leads, and monitor the progression of opportunities through defined sales cycles.

• Opportunity Tracking: Sales opportunities can be created and tracked from initiation to completion.
• Sales Stages: Businesses can define their own sales cycles and stages to manage the progression of opportunities.
• Pipeline Management: The system allows for the ongoing processing and management of sales opportunities.
• Email Exchange Tracking: Email interactions related to sales opportunities can be tracked within the system.

3. Campaigns, Segments & Interactions

Business Central CRM enables targeted marketing efforts through campaign creation, contact segmentation, and interaction management. This functionality ensures personalised outreach and efficient management of prospect and customer engagements.

• Campaign Creation: The system allows for the creation and management of sales campaigns
• Segmentation: Businesses can create segments to group contacts based on specific criteria for targeted marketing
• Interaction Management: Interactions with segments can be managed to track the effectiveness of campaigns
• Personalised Marketing: By using segments, businesses can deliver more personalised marketing messages.

4. Reports & Analytics

Business Central provides a variety of built-in sales reports and powerful analytical tools that offer critical insights into sales performance and customer behaviour. These resources support informed decision-making by enabling businesses to monitor key metrics and identify trends.

• Key reports available: A variety of sales reports are available, including Customer - Top List, Sales Statistics, and Customer/Item Sales. These can be designed for print (PDF) or analysis in Excel.
• Customisable dashboards: The Power BI Sales app offers various reports such as "Sales overview", "Daily Sales", and "Key Sales Influencers". This app is available on AppSource and requires a Power BI Pro license for full use.
• Sales Performance Metrics: Key Performance Indicators (KPIs) such as Month-To-Date (MTD) sales, Moving Annual Total (MAT), and Period-Over-Period Growth can be tracked.

5. Integration with Dynamics 365, Microsoft 365 & Copilot

Business Central CRM integrates with Dynamics 365 Sales, Microsoft 365, and Copilot, enabling seamless data synchronisation, automated workflows, and AI-driven insights across these platforms. This connectivity enhances its power by creating a more interconnected and efficient business ecosystem.

• Integration with Dynamics 365 Sales: Business Central integrates with Dynamics 365 Sales via Dataverse, allowing for data synchronisation between the two platforms. This enables bidirectional synchronisation of sales orders.
• Microsoft 365 Integration: Business Central can be used as a business inbox in Outlook, allowing for synchronisation with contacts.
• Copilot & Agent Capabilities: Features include sales line suggestion, Sales Order Agent capabilities for processing sales quotes and orders, and summarisation of records.
• Integration with Field Service: Integration with Dynamics 365 Field Service streamlines service operations by connecting finance, inventory, and service delivery.

6. Key limitations to consider

While Business Central CRM offers extensive features, key limitations for businesses to consider include potential complexities in setup, scalability considerations for very large organisations, and challenges related to extensive customisation.

• Complexity in setup: Initial setup and configuration, especially for integrations and advanced features, can be complex. For instance, integrating with Dynamics 365 Sales requires specific connection settings and permissions.
• Potential scalability issues for very large organisations: While suitable for SMEs, very large organisations with highly complex and specialised CRM needs might find Dynamics 365 Sales or other dedicated CRM platforms more tailored to their scale.
• Customisation challenges: Extensive customisation might require developer expertise and can add to the cost and complexity. Reconnecting through Dataverse, for example, overwrites any prior custom synchronisation settings with default mappings.

Understanding these features and their implications is vital, yet Australian SMEs must also critically evaluate Business Central CRM against specialised alternatives. The following section will provide a direct comparison between Business Central CRM and Dynamics 365 Sales, aiding in the strategic decision of which solution best fits evolving business needs.

How To Choose Between Business Central CRM vs Dynamics 365 Sales

Choosing between Business Central CRM and Dynamics 365 Sales requires Australian SMEs to evaluate their current operational needs against future growth projections and sales complexity. This decision hinges on whether a business prioritises an integrated ERP with foundational CRM capabilities or a specialised, advanced sales-focused solution, ultimately impacting efficiency and scalability.

1. Differences between Business Central CRM and Dynamics 365 Sales

The primary difference between Business Central CRM and Dynamics 365 Sales lies in their core purpose and depth of functionality. Business Central CRM provides integrated CRM capabilities as part of a comprehensive ERP system, while Dynamics 365 Sales is a specialised application exclusively focused on advanced sales processes and customer engagement.

2. When should an Australian SME consider upgrading to Dynamics 365 Sales?

An Australian SME should consider upgrading to Dynamics 365 Sales when its business growth and sales complexities exceed the capabilities of Business Central's integrated CRM. It is when the business needs more specialised tools for advanced sales management and analysis.

• Business Growth: As the business expands and sales volumes increase, the need for more specialised sales tools becomes apparent.
• Increased Sales Complexity: If sales processes become highly intricate, requiring advanced lead management, detailed forecasting models, or multi-channel engagement, Dynamics 365 Sales offers greater depth.
• Need for More Customised Solutions: Businesses requiring highly tailored sales workflows, custom reporting, or advanced automation specific to their sales methodology may find Dynamics 365 Sales more flexible.
• Dedicated Sales Teams: Organisations with a growing, dedicated sales force benefit from specialised tools that enhance productivity, manage territories, and track individual performance in greater detail.
• Demand for Advanced Analytics: Businesses requiring deeper insights into sales performance, customer behaviour, and more granular forecasting may benefit from the advanced analytical capabilities of Dynamics 365 Sales.

Upgrading to Dynamics 365 Sales provides more specialised CRM features, enabling better lead nurturing, improved sales team efficiency, and more precise sales forecasting.

While understanding the distinctions between Business Central CRM and Dynamics 365 Sales is crucial for Australian SMEs, maximising the potential of either system, or both, often involves strategic integration. The following section will detail the process and benefits of integrating Business Central with Dynamics 365 Sales, showcasing how this combined approach can further enhance business operations.

Business Central CRM Integration with Dynamics 365 Sales

Business Central CRM integration with Dynamics 365 Sales is the process of linking these two platforms for seamless data synchronisation and a unified workflow. This integration primarily occurs through Dataverse, which is a secure and scalable data platform that connects various Dynamics 365 applications and services. This integration allows businesses to leverage the comprehensive ERP functionalities of Business Central alongside the specialised sales tools of Dynamics 365 Sales.

1. Integration benefits

The integration of Business Central and Dynamics 365 Sales offers several benefits by harmonising data and workflows across both platforms:

• Seamless Data Synchronisation: Information such as customer data, sales orders, and inventory availability can be synchronised between both systems, reducing manual data entry and ensuring data consistency. For example, sales orders created in Dynamics 365 Sales can be processed in Business Central.
• Unified Sales Pipeline: Salespersons can view information from Business Central, such as inventory levels, while working in Dynamics 365 Sales, providing a complete view of the sales process from lead to fulfilment.
• Automated Workflows: The integration enables automated processes, such as automatically creating sales orders in Business Central when submitted in Dynamics 365 Sales. Bidirectional synchronisation ensures changes in one system are reflected in the other.
• Improved Customer Insights: A unified view of customer interactions and sales data across both platforms leads to better insights and more informed decision-making.

These benefits collectively lead to increased operational efficiency, better strategic decision-making, and enhanced collaboration across sales and finance teams within the business.

2. How to set up the integration for AU businesses

Setting up the integration between Business Central and Dynamics 365 Sales primarily occurs through Dataverse, involving a series of sequential steps to configure connections, permissions, and data synchronisation.

• Step 1 - Set up the Connection to Dataverse: This is the foundational step for connecting Business Central to other Dynamics 365 applications.
• Step 2 - Enable Integration to Dynamics 365 Sales: Use the assisted setup guide in Business Central by navigating to "Setup and Extensions," then "Assisted Setup," and choosing "Set up the Dynamics 365 Sales Connection".
• Step 3 - Configure Connection Settings: Fill in the necessary fields, including the Dynamics 365 Sales URL and options for automatic item availability synchronisation and sales order integration. Decide between single-directional (Legacy Sales Order Integration) or bidirectional synchronisation of sales orders, noting that these options are mutually exclusive.
• Step 4 - Permissions and Security Roles: Ensure appropriate security roles are deployed and assigned to user accounts in Sales, such as "Dynamics 365 Business Central Integration Administrator" and "Dynamics 365 Business Central Integration User".
• Step 5 - Install the Integration Solution: Install and configure the integration solution in Dynamics 365 Sales.
• Step 6 - Synchronise Data: Perform a full synchronisation of data. Standard entity mappings exist for tables like Unit of Measure, Item, Resource, Customer Price Group, Sales Price, Opportunity, Sales Invoice Header, Sales Invoice Line, Sales Order Header, and Sales Order Notes. Synchronisation jobs run in a specific order to manage dependencies.

Local Compliance and Support: While the integration process is globally standardised, Australian businesses should ensure their tax settings (e.g., GST) and local financial reporting align with Business Central's capabilities.

Microsoft provides comprehensive integration documentation and support resources, and a local Microsoft partner in Australia can assist with implementation, customisation, and ongoing support to ensure compliance and optimal performance.

Understanding how to integrate Business Central with Dynamics 365 Sales is a crucial step for Australian SMEs, but making an informed decision about these powerful platforms also requires considering broader strategic factors. The next section delves into how Business Central CRM aligns with local compliance, its advantages over other business tools, and key differences from leading CRM systems like HubSpot and Salesforce.

Additional Considerations for Australian Businesses

1. How Does Business Central CRM Support Australian Compliance and Local Needs?

Business Central CRM supports Australian compliance through essential features:

• GST calculation: Accurately handles Goods and Services Tax for Australian operations.
• Custom fields: Supports ABN fields and other local reporting needs.
• Local data hosting: Can leverage Microsoft Azure data centres in Australia for data sovereignty.
• Financial reporting: Aligns with Australian accounting standards and reporting formats.

These aspects are critical for any business considering an ERP solution in Australia, and further details can be found when exploring the features and integrations for Dynamics 365 Business Central.

2. What Are the Key Benefits of Using Business Central CRM Over Other Tools (Excel, Zoho)?

Business Central CRM offers notable advantages over basic tools like Excel or Zoho:

• Centralised data: Acts as a single source of truth for CRM, finance, inventory, and more.
• Automation: Enables automated workflows for sales, marketing, and service tasks, beyond what Excel provides.
• Scalability: Grows with your business, unlike simpler tools that can’t handle increasing complexity.
• Integrated workflows: Ensures CRM activities impact financials and inventory in real time.
• Advanced analytics: Offers deeper insights with built-in reports and Power BI dashboards.

These benefits underscore why businesses often choose a comprehensive ERP solution like Business Central over more basic tools, as detailed in discussions about the evolution and advantages of Business Central ERP.

3. What Are the Core Differences Between Business Central CRM and HubSpot or Salesforce?

Key differences between Business Central CRM, HubSpot, and Salesforce include:

• Pricing: HubSpot’s freemium model can scale up in cost; Salesforce is premium. Business Central often includes CRM features in its ERP pricing, potentially more cost-effective for integrated needs.
• Features: Salesforce offers deep customisation and vast apps for scalable growth. HubSpot excels as an all-in-one platform unifying marketing, sales, and customer service. Business Central stands out for its ERP integration, providing a unified platform for finance, operations, and CRM.
• Scalability: While all three platforms scale, Business Central is best suited for SMEs that want CRM integrated with finance and operations.

For Australian SMEs, Business Central CRM offers a robust and integrated platform, providing foundational CRM capabilities as part of an ERP solution for streamlining various business functions. This article has explored its core features, integration with Dynamics 365 Sales, and how it aligns with Australian businesses, addressing key comparisons with other market tools.

As business needs evolve, upgrading to Dynamics 365 Sales adds specialised CRM capabilities.

To determine the best solution for your business, we recommend consulting a certified Microsoft partner like Havi, who can guide implementation and customisation to match your operational goals.

References:

• Microsoft. Managing relationships. Dynamics 365 Business Central
• Microsoft. Sales. Dynamics 365 Business Central
• Microsoft. Business Functionality. Dynamics 365 Business Central
• Microsoft. Australia local functionality. Dynamics 365 Business Central
• Microsoft. Integrating with Dynamics 365 Sales. Dynamics 365 Business Central
• Microsoft. Configure Copilot and agent capabilities. Dynamics 365 Business Central