Dynamics 365 CRM Sales process is a streamlined business process to generate potential sales opportunity for the business. Here we will discuss how the sales process works and the life cycle of a typical sales process in Dynamics 365 CRM.

We will learn the below topics regarding Sales Life Cycle,

  • Lead Capture
  • Account Creation
  • Contact setup
  • Opportunity management
  • Product Catalog
  • Quote Management
  • Order Management
  • Invoice management
  • Sales Business Process

Here is a typical entities involved in a Sales process in Dynamics 365.

A typical sales process in Dynamics 365 starts with a Lead. A lead represents any person or organization that a company might have the potential to do business with.

Lead Capture

A Lead is a prospective customer (individual/business organization) of a product or service, created when an individual or business shows interest and provides contact information for communication purpose. Businesses capture leads through advertising(Online/Offline), trade shows, direct mailings and other marketing campaigns.

A Sales person enters the information in Lead entity available in Dynamics 365. Lead only requires a Lead Name (First name & Last Name) and a Topic describing the Lead to create an entry in the system.

E.g.: TOPIC : 100 Laptop for Z Company Name : Robert Clay

After the Lead creation in the system the sales person performs follow up activities by sending emails, appointments and phone calls etc to capture more information about the Lead and to proceed with the next process of Lead Qualification. Microsoft Dynamics 365 stores these records as activities in the system.

Leads can be Qualified/ Disqualified. All Qualified Leads automatically create a default contact and an opportunity record in the system. When a Lead gets Disqualified the system stops the sales process. But system store this information for future campaigns.

Some organization do not follow this Lead creation process rather they directly use creation of opportunity record in the system to start the sales life cycle so honestly it depends how we want to organize our sales data. Lead is an Out-of-the-box entity which allows to store lead information so we can use it or skip it depending our business requirement.  

Account Creation

Accounts are organizations with which you have a relationship. Since Microsoft Dynamics 365 is a customer relationship management solution, this is where customers would reside in your database.  However, accounts can also contain other types of records including prospects, vendors, business partners, and other organizations that interact with your organization. Generally business stores customer data in contact record and vendor information in Account.

Contact Setup

Contacts are individual people with whom you have a relationship generally customers or contacts of customers. Often contacts are related to an account, but certain organizations and businesses may serve or sell to individual consumers, and so most of the contacts will not be under accounts.

Contacts integrate with the contacts in Microsoft Outlook, so it is important to understand that when fields on the contact record are updated, that change may synchronize to Outlook for one or more users depending on synchronization settings.

Opportunity Management

Opportunities in Microsoft Dynamics 365 are the core record type in the sales process used by the sales team. opportunities represent a potential sale for a specific customer.  The creation of an opportunity adds this potential sale to the sales pipeline and therefore puts it on the radar of the sales manager who may be holding the team responsible for the progress of opportunities.

In addition to creating a pipeline, opportunities allow organizations to track the success of marketing efforts by tracking sales back to the original lead source and source campaign.  In the same way, when an opportunity is lost, lost reasons and competitors can be tracked. When a customer agrees with the quotation then the the opportunity gets WON and an Order is placed. When customer disagrees the Quotation pricing then the Opportunity becomes Lost by stopping the Sales life cycle.

Product Catalog

Product catalog is a very important concept in Dynamics 365. We can do Product configuration with Pricing information, Discount List, Unit Group. Usually organizations store products in ERP system and then sync with CRM to use it in Quotation and Opportunity.

Quote Management

Quote contains the products or services customer interested in and asked for a price. After the customer review he/she agrees to continue for placing order. Quotation contains the product or service items with defined price list, discount list etc.

Order Management

Order is a confirmation of a sale that to be invoiced and placed for further proceeding for logistics. An opportunity converted into an order if it is won.

Invoice Management

After an order placed successfully the invoices are generated in the system. Payments are being collected with ERP system.

Sales Business Process

Every business follows some business process to capture sales information and close a sale. Using Business Process Flow business can define a process flow so that sales user will just follow the guided process without any confusion. For example we can close a sale by following the stages like propose, develop, close which is a Out-of-the box sample Business process flow. We can define custom business process flow as per our sales process life cycle.