Quote Tool for Dynamics 365

What is a Quote Tool For Dynamics 365?

A quote tool for Dynamics 365 is a software solution integrated within Dynamics 365 that enables sales teams to create, manage, and send sales quotes efficiently. This could be a basic quoting software or a full-featured CPQ (configure, price, quote) system.

Quoting is crucial in sales. It provides customers with clear and detailed pricing estimates, helping them set accurate expectations and make faster purchase decisions. But sales teams face frequent challenges with manual data entry, pricing errors, branding inconsistencies, and limited tracking capabilities when creating and delivering sales quotes within Dynamics 365.

CPQ and quoting software address these challenges by automating parts of the quote creation process and providing a platform for easily building, sending, and tracking professional sales quotes. In the case of CPQ, additional features like product configurators and sales playbooks further enhance the quoting experience for sales teams and customers alike.


  • Quote generation in Dynamics 365
  • Sales quotation tool for Dynamics 365

The Challenges of Quoting in Microsoft Dynamics 365

Perhaps the biggest issue with manual quoting in Dynamics 365 is the potential for human error. With multiple pricing options, product configurations, and discounts to consider, it’s easy for sales reps to make mistakes when adding in line items and calculating prices.

Beyond that, there are several problems with the lack of a centralized quoting solution within Dynamics 365:

  • Margin leakage from manual errors
  • Little support for complex products and deal structures
  • Inconsistencies in branding and formatting
  • Slow turnaround times for quotes and proposals
  • Limited tracking capabilities
  • Low visibility into the quoting process
  • Wasted time on administrative work instead of selling
  • No interactive features for customers

All these factors contribute to longer sales cycles and lost sales opportunities. And with the increasing demand for a seamless and personalized buying experience, businesses need to have a more efficient way to quote their customers.

Benefits of Integrating CPQ with Dynamics 365

Integrating with CPQ is the easy way to generate quotes in Microsoft Dynamics 365. With CPQ, you can create different types of sales quotes, configure complex products, structure deals with flexible pricing rules, and automate discounts and approvals.

Plus, CPQ integrates data from CRM, ERP, and ecommerce systems to provide you with a holistic view of your customer data, product information, and pricing models.

Here are some key benefits of integrating CPQ with Dynamics 365:

  • Improved quote accuracy and reduced margin leakage
  • Support for product bundles, upsells, and cross-sells
  • Complex quoting capabilities for unique product/service offerings and deal structures
  • Discounting, dynamic pricing, and price optimization features
  • Quote tracking for better pipeline visibility, sales forecasting, and analytics
  • Automated data entry, document generation, and pricing calculations
  • Brand consistency with customizable templates and branding options
  • Turnaround times in hours instead of days
  • Consistent branding and formatting across all quotes
  • User-friendly drag-and-drop quoting interface
  • Product catalog, pricing rules, and approval workflows
  • Interactive features for customers to accept quotes

Not to mention, CPQ handles the entire sales workflow from product configuration through pricing calculations, quote delivery, contracting, and invoicing. Every step of the way, there’s a seamless handoff. And, since it all happens in the same platform, there’s no risk of data loss or errors.

Seamless, error-free transfers from one stage of the sales process to the next lead to higher productivity from your sales team and increased win rates across the board. Not to mention, they make the buying experience far more frictionless for your customers.

How to Choose the Right Quote Tool for Microsoft Dynamics

There are dozens of options out there. Some are built for B2B manufacturing. Others are designed to handle the unique aspects of SaaS sales. And some are best for simple sales transactions like basic professional services.

So, how do you choose the right quote tool for your needs?

Here are the steps you need to take:

1. Identify your specific needs and requirements.

You don’t want to choose a quoting software that’s too complex for your business. Then, you’d wind up overpaying for features that complicate your workflow. But creating an accurate quote isn’t enough — you also don’t want to choose a tool that can’t handle your product catalog or pricing structure.

Start the CPQ selection process by mapping out your specific needs and objectives. Consider the following:

  • Team size
  • Number and complexity of products/services 
  • Deal structures and pricing models
  • Sales workflow and approval processes
  • Integration requirements with other systems
  • Reporting and analytics needs
  • Budget and pricing plans

Also consider your company’s future outlook. If you’re planning on growing your business, you’ll want to choose a platform that offers extensibility for larger teams. 

Ideally, you should go for tools with other integrated features like contracting and invoicing. That way, you won’t have to switch between multiple platforms and risk data loss or errors. And you won’t need to spend as much time consolidating your tech stack later on.

2. Consider the essential features that meet those needs.

As a Dynamics 365 user, you might already have some basic functionality for quote creation and management through the Quote Manager CPQ module. So, start by considering which features would add the most value to your existing sales process.

There are a few essential CPQ features for Microsoft Dynamics 365 users:

  • Alignment with the native Dynamics 365 user experience
  • Easy-to-use platform with guided selling and sales playbooks
  • Agile pricing engine with flexible rule-setting options
  • Easy implementation and administration
  • Automated approval workflows
  • Data synchronization with Dynamics 365 systems
  • Analytics and intelligence at each stage of the buyer’s journey
  • Multi-currency support and price localization (if you’re selling internationally)

You should also consider features specific to your business model. For example, if you’re a SaaS company, you’ll definitely need tools for subscription management and recurring billing. Manufacturers might want tools for visual configuration, CAD automation, and BOM generation.

3. Evaluate each tool’s ease of integration with your existing Dynamics 365 instance.

Some CPQ systems integrate with MS Dynamics 365 more easily than others. The top tools have native integrations that synchronize data in real time, ensuring consistency across your systems. But not all are created equal, and some may require custom coding or additional support to integrate with Dynamics 365.

DealHub is an example of a CPQ platform that integrates seamlessly with the Dynamics 365 product suite. Its no-code platform offers features for CPQ, buyer engagement, contract management, e-signatures, subscription management, and billing. It’s a Microsoft Co-Sell Partner, and you can use it right within Dynamics 365.

4. Consider the implementation process and time frame.

Is your team already overwhelmed with new technology? Then, you’ll want a CPQ tool that’s easy to implement, offers support and training resources, and has a fast implementation timeline.

Of course, enterprise-scale implementations will take weeks or months to set up, configure, and launch. But your goal should be to go live with CPQ as soon as possible.

If your organization is too large for self-service, the right CPQ tool will offer onboarding services that quickly get your team up to speed. And they should give you access to customer support for any issues or questions that arise post-implementation.

5. Prioritize user-friendliness and adoption by your sales team.

You want to involve the end-users (your sales reps) during the selection process. After all, they’ll be the ones logging into the platform each day and using it to generate quotes. Get their feedback on demos and trials to ensure it’s straightforward for your team to use.

Reps don’t have the time or patience to learn a complicated tool that slows down their workflow or is too confusing to use. That’s why user adoption is one of the main reasons for a low ROI or failed implementation project.

6. Compare pricing models and ongoing support offered by vendors.

Your CPQ tool should align with your organization’s budget and pricing structure (though you should also come prepared with reasonable expectations of CPQ costs). Some tools require a large upfront investment for implementation, while others are more affordable through monthly or yearly subscriptions. And each will offer different tiered and usage-based components.

You want to look closely at the total cost of the system as you scale your business. For example, one company might offer a straightforward $150 per user per month price while another charges a flat rate up to 10 users but just $40 per user after that. As you hire more sales reps, the second option might become cheaper.

Also evaluate the level of support each vendor offers. Do they have a knowledge base? Will they provide training resources, technical support, and updates? Will they charge extra for these services? Prioritize vendors with a range of support options and transparent pricing.

7. Read reviews from other Dynamics 365 users.

Reviews from other Microsoft Dynamics 365 users will give you valuable insights into the real-life effectiveness and usability of different CPQ tools. Look for reviews on independent sites like Gartner Peer Insights, TrustRadius, and G2 Crowd to get an idea of each platform’s strengths and weaknesses.

When you hop on sales demos with vendors, ask for case studies and customer references as well. This will give you a more well-rounded understanding of how each tool performs in a real-world setting.  

8. Schedule demos and trials with top vendors.

Once you’ve narrowed down your list to a few top contenders, schedule demos and trials to get hands-on experience with each tool. Pay attention to the user interface, available features, and overall ease of use.

During demos, ask specific questions about:

  • How the tool integrates with Dynamics 365
  • The typical implementation timeline
  • Limitations in the product configuration or pricing capabilities
  • What customization options you have available
  • Level of ongoing maintenance required to keep using the software (e.g., can you make adjustments on your own?)
  • How they ensure the security of your data
  • Whether the solution complies with industry regulations (e.g., GDPR, HIPAA)
  • Hidden costs or additional fees you should be aware of

If you can, take advantage of free trials and sales POCs to test out the platform yourself and involve your team in the evaluation process.

Additional Considerations for Sales Operations Managers

As a Sales Ops leader, you have the additional responsibility of ensuring the CPQ tool aligns with your organization’s overall sales strategy and processes. You’re in charge of handling any potential roadblocks or resistance to change from your team. And you have to make sure it complies with your company’s security and data privacy policies.

Here’s your checklist for evaluating CPQ solutions:

  • Data integration: Does the CPQ tool integrate with your non-Dynamics tools (e.g., if you use a separate platform for ERP)?
  • Approval workflows: Quotes with certain characteristics, like a discount above a certain threshold, should go through multiple levels of approval. Route these to the appropriate member of your deal desk or sales management team.
  • Customization during setup: Create sales playbooks, guided selling flows,
  • Analytics and reporting: Gain insights into what products are selling the best or which sales reps have the highest quote-to-win ratio. This is the kind of information that helps you set realistic quotas, coach reps on best practices, and understand your ROI. 
  • Sales team feedback: Get their perspective on how the tool could help them sell more efficiently and effectively. Consider setting up a task force of sales rep volunteers to help test out the shortlisted tools.
  • Security and compliance: This could cost you a lot of time and money if you overlook it. Make sure the tool complies with GDPR, CCPA, HIPAA, or any other regulations that apply to your industry or location of business.
  • ROI: Maximizing the ROI of CPQ requires effective implementation and user adoption. Track metrics like time to value, sales productivity, and quote accuracy to gauge the success of your quoting tool.

People Also Ask

Can you create a quote in Microsoft Dynamics without integrating a quoting tool?

Microsoft Dynamics 365 has its own quoting tool — Quote Manager CPQ. However, it may not have all the advanced features and integrations with other tools that a dedicated CPQ tool can offer. Using Quote Manager CPQ may be sufficient for some organizations, but others may benefit from integrating a separate tool to further streamline quoting and enhance sales productivity.

What CPQ solutions integrate with Dynamics 365?

Microsoft Dynamics 365 has an extensive list of partner solutions that integrate with its CRM platform via direct connectors and APIs. For example, DealHub CPQ integrates seamlessly with Dynamics 365, allowing sales reps to create quotes and proposals directly from within the Dynamics 365 platform.