CRM Marketing Cost Crisis: Salesforce vs. Dynamics 365 – Which CRM Won’t Break Your Budget as Contacts Pile Up?

For businesses managing marketing contacts, CRMs like Salesforce and Dynamics 365 are the go-to powerhouses. But behind their flashy features lies a big question: Which one is more cost-effective for storing and managing your precious contacts?

Let’s dive into these CRM pricing models, uncovering the quirks, costs, and hidden gems each one offers.

Dynamics 365: Contact Quotas That Tick Like a Timer

Dynamics 365 takes a unique approach with its contact quota system. It gives you a specific number of marketing contacts as part of your subscription— offering a structured yet tricky model:

• How It Works: Each time a contact interacts with your CRM (like opening an email or clicking a link), they take up space in your quota. And they stay there for a whole year before being removed from the count.
• The Challenge: If you’re running frequent campaigns or working with large contact lists, that quota can fill up faster than you expect. Once it’s full, you’ll need to pay for extra contacts.

While this system might work for businesses that manage active, short-term campaigns, it can feel like walking a tightrope. One slip, and you’re paying more than you planned.

Why It Works:

The reset-after-a-year rule can be a blessing if you manage short-term campaigns. But for businesses with massive contact lists or sporadic interactions? It’s a different story.

Salesforce: Pay as You Go, Stay as You Please

Salesforce flips the script with its pay-as-you-go model:

• No Quotas Here: You’re free to store as many contacts as you want. You’re not worried about contacts dropping off after a year or juggling a quota. If a contact is in your CRM, you pay for it.
• Costs Scale Up: Every contact comes with a price tag and outdated contacts can add up fast. So, you’ll need to stay on top of cleaning your database to avoid unnecessary costs.

This model works well if you value flexibility and don’t want to worry about managing quotas. But it might not be ideal if your contact list is more "set it and forget it."

Head-to-Head: Which CRM Costs You Less?

Breaking Down the Interactions:

Let’s define the two types of interactions that play a big role in CRM cost models:

1. Transactional Interactions:

These are related to fulfilling product or service-related needs—think order confirmations, updates, or usage reports.

• Dynamics 365: Counts these interactions towards the contact quota for the marketing app. Once a contact is engaged for a transactional purpose, they occupy quota space for a year.
• Salesforce: While Salesforce doesn’t have a quota system, each contact adds to the overall cost. Whether the interaction is transactional or not, if the contact exists in the CRM, you’re paying for it.

2. Commercial Interactions:

These are tied to pitching, promoting, or selling products—like marketing emails, follow-ups, or promotional campaigns.

• Dynamics 365: Also counts these interactions toward the contact quota, making frequent campaigns a quick way to hit the limit.
• Salesforce: Similarly, there’s no differentiation in cost for commercial interactions. Every contact counts, but there’s no cap or quota; costs simply increase with the size of your database.

This distinction highlights a key difference: Dynamics 365 penalizes frequent contact interactions with its quota model, while Salesforce applies a flat cost for all contacts, regardless of interaction type.

Who Wins?

If you’re all about frequent campaigns with a revolving door of new leads, Dynamics 365 might make sense—but watch out for the cost spikes if you don’t manage your quota wisely.

For businesses with a large, stable database or those that value simplicity, Salesforce’s pay-as-you-go model is the clear winner, even if it means being vigilant about database hygiene.

Which CRM Should You Choose?

• If your campaigns are fast-paced and high-touch, Dynamics 365 could be a good option. The reset after a year means you might avoid paying for dormant contacts—but only if you carefully manage your quota.
• If you prefer predictability and flexibility, Salesforce might be your best bet. You’ll pay for every contact, but you won’t need to worry about quotas or resetting them.

Both models have their pros and cons, but the “right” CRM depends on how your business runs its campaigns and manages its contact database.

Choosing the Right CRM Isn’t Just About Costs

Ultimately, the cost is just one piece of the puzzle. While Dynamics 365’s quota system offers a chance to save if you play your cards right, Salesforce provides the freedom to focus on your campaigns without worrying about quotas.

Pro Tip: Before making a decision, check how frequently a contact will be interacted with, the size of your contact list, and how often you interact with your leads. If you have a sales journey that requires repeated reminders or updates to the contact, Quota Contacts in Dynamics 365 will take longer to exit the quote due to 1-year-since-last-interaction criteria.

Need help figuring it all out? Our CRM experts are just a call away to guide you to the perfect solution.