Dynamics 365 Licensing for Customer Insights
- Dynamics 365 Licensing for Customer Insights:
- Base License: Covers core customer data unification and insights.
- Capacity Add-ons: Purchase additional data storage or profile capacity.
- Audience Insights: License for analyzing and segmenting customer data.
- Engagement Insights: Track customer interactions, licensed separately.
- AI Add-ons: Enhance analytics with advanced AI capabilities
Dynamics 365 Licensing for Customer Insights
Dynamics 365 Customer Insights is a powerful customer data platform (CDP) that helps organizations unify customer data, gain actionable insights, and enhance customer experiences.
Customer Insights integrates data from multiple sources, such as transactional, behavioral, and demographic data, to build a complete view of the customer.
Exploring how to license Dynamics 365 Customer Insights properly is key to ensuring cost efficiency while maximizing its capabilities.
What are Dynamics 365 Customer Insights?
Microsoft Dynamics 365 is a suite of enterprise applications that combines CRM and ERP capabilities. Its flexible licensing models allow organizations to choose the best solution for their specific requirements.
Understanding the differences between user and device licensing is crucial to getting the most value and ensuring compliance.
Licensing Options for Dynamics 365 Customer Insights
Microsoft offers different licensing options for Dynamics 365 Customer Insights, providing flexibility depending on the organization’s scale and needs.
There are two main licensing options for Customer Insights:
- Base Licensing: This is the standard license required to start using Dynamics 365 Customer Insights. It typically includes a set capacity for ingested data and profiles, allowing businesses to begin analyzing customer information.
- Capacity Add-On Licensing: When the base capacity is exceeded, organizations can purchase additional Capacity Add-On Licenses to extend their capabilities. These add-ons are crucial for scaling up as your customer data grows.
Example: A mid-sized business might start with a base license that allows for 100,000 customer profiles. As their customer base grows, they can purchase capacity add-ons to increase their profiles to 500,000 or more, ensuring they can continue to analyze and act upon all customer data without restrictions.
Features Covered Under Different License Types
Dynamics 365 Customer Insights offers a variety of features under different license types. Here’s a breakdown of what’s typically included in each type of license:
- Base License Features:
- Unified Customer Profiles: Create a single customer view by unifying data from different sources.
- Segmentation Tools: Build dynamic segments to target specific groups of customers.
- Predictive Insights: Use machine learning to provide insights, such as customer lifetime value.
- AI-Driven Recommendations: Personalized product or service recommendations to improve engagement.
- Add-On License Features:
- Increased Data Capacity: Expand the number of customer profiles or data ingestion limits.
- Custom Analytics: Add more capabilities for running advanced analytics on larger datasets.
Example: Suppose an organization starts with a base license with 100,000 profiles. As it grows and integrates new data sources, it needs to increase the number of profiles and add custom analytics capabilities. In this scenario, purchasing add-on licenses allows it to expand capacity without needing a completely new licensing model.
Add-On Capabilities and Licensing
For businesses that need more than the base capacity, Microsoft provides add-on licensing to ensure organizations can scale effectively without major disruptions.
- Capacity Add-Ons: Increase the number of customer profiles beyond the base limit.
- Audience Insights Add-On: Enhances the segmentation capabilities by allowing organizations to create more granular customer segments.
- Connectors Add-On: This add-on enables integration with additional third-party data sources, expanding the breadth of customer data that can be integrated.
Example: A marketing team that needs to integrate data from new channels like social media or third-party CRM systems can leverage a Connectors Add-On to ensure this data is included in Customer Insights, enhancing the overall understanding of their customer base.
User Roles and Access Considerations
Effective licensing of Dynamics 365 Customer Insights also requires understanding user roles and access levels. Different roles have different needs, and licensing should align accordingly.
- Admin Users Need full access to configure the system, integrate data sources, and manage profiles. They typically require a full license.
- Analyst Users: Responsible for analyzing data, creating segments, and generating reports. They may require a standard license with analytics capabilities.
- Business Users: Use Customer Insights to gain high-level insights into customer behavior. You may only need view-only access to dashboards and reports.
Example: A retail company may assign full licenses to IT admins for setup and integration, standard licenses to data analysts who will work on creating customer segments, and view-only access for sales managers to track high-level metrics.
Read about Dynamics 365 for Field Service Licensing.
Cost and Pricing Structure
The pricing structure for Dynamics 365 Customer Insights depends on several factors, including the number of profiles, add-ons, and users who need access.
- Base License Cost: This typically includes a certain number of customer profiles (e.g., 100,000 profiles). It covers the main capabilities of Customer Insights.
- Add-On Costs: As data needs grow, organizations can purchase capacity add-ons for more profiles or additional capabilities like Audience Insights and Connectors.
- User Licensing Costs: Additional costs may apply depending on the number of users and the type of access they need (admin, analyst, view-only).
Example: A business with 150,000 customer profiles may need to start with a base license for 100,000 profiles and then add a capacity add-on to cover the additional 50,000 profiles. If they also need extra connectors for data sources, they may add a Connectors Add-On.
Practical Examples of Licensing Scenarios
To help clarify the Dynamics 365 licensing for Customer Insights, here are some practical scenarios:
- Scenario 1: Small Retail Business
- Customer Profiles: 50,000 profiles.
- Licensing Plan: Start with a Base License only, which provides enough capacity for their current data.
- User Roles: Assign one admin user for setup and configuration and one analyst user for data analysis.
- Scenario 2: Growing E-Commerce Company
- Customer Profiles: 150,000 profiles.
- Licensing Plan: Purchase a Base License for 100,000 profiles plus a Capacity Add-On for the additional 50,000 profiles.
- User Roles: Assign admin access to IT, analyst roles to the marketing team, and view-only access to senior management.
- Scenario 3: Large Enterprise with Multiple Data Sources
- Customer Profiles: 500,000 profiles.
- Licensing Plan: Base License plus multiple Capacity Add-Ons to cover all profiles. Purchase Connectors Add-On to integrate data from social media and third-party CRM systems.
- User Roles: Multiple admins, analysts, and view-only users to support various departments across the organization.
Best Practices for Optimizing Licensing Costs
Optimizing the licensing costs for Dynamics 365 Customer Insights requires careful planning and understanding of your organization’s needs.
Here are some best practices:
- Start with Base Licensing: Begin with the Base License that meets your needs. As your data grows, purchase add-ons to avoid over-licensing initially.
- Assess Data Requirements Regularly: Customer data is likely to grow. Regularly assess whether you need additional capacity or if some profiles are no longer needed, and adjust licensing accordingly.
- Leverage Add-On Licensing for Growth: As your customer base and data sources expand, use capacity add-ons and connectors. This approach allows you to scale without paying for excess capacity upfront.
- Assign Roles Based on Need: Not every user requires full access. Assign roles carefully—admins for configuration, analysts for data work, and view-only users for insights. This role-based licensing can reduce overall costs.
Example: A medium-sized business that anticipates significant growth over the next year should start with a Base License to cover initial profiles and gradually add capacity as the customer data grows. Assigning view-only roles to most users ensures that only those who need in-depth access require full licenses, helping manage costs effectively.
Dynamics 365 Licensing for Customer Insights FAQ
What license is needed for Customer Insights?
You need a dedicated Customer Insights license to use Dynamics 365 Customer Insights. This license allows access to data unification, audience insights, and personalized customer journey tracking.
Can Customer Insights integrate with other Dynamics 365 apps?
Yes, Customer Insights integrates with apps like Sales, Marketing, and Customer Service, helping to create a complete view of customer data across departments.
Does Customer Insights require additional licenses for analytics?
No, analytics features are included in the Customer Insights license. This allows you to analyze customer data, track interactions, and generate insights without extra licenses.
How does Customer Insights handle role-based access?
Customer Insights follows role-based access control. Depending on their responsibilities, you can assign different roles to users, ensuring data access is secure and limited to necessary personnel.
Can multiple Dynamics licenses be combined with Customer Insights?
Yes, you can combine Customer Insights with other Dynamics 365 licenses, like Sales or Marketing, to create a unified data and customer relationship management system.
Is AI included in Customer Insights licensing?
The Customer Insights license includes AI-powered capabilities for predicting customer behaviors and automating personalized interactions.
How are external data sources handled in Customer Insights?
Customer Insights allows integration with external data sources. You can combine data from third-party platforms, ensuring a holistic view of customer information across multiple channels.
What is the licensing requirement for multi-team use?
For multiple teams, you’ll need additional Customer Insights licenses depending on the number of users accessing the platform. Each team member requires their license.
Does Customer Insights offer mobile app access?
The platform does not have a dedicated mobile app, but users can access Customer Insights through web-based portals.
Are there trial licenses available for Customer Insights?
Yes, Microsoft offers a free trial license for Customer Insights. This allows you to test its features and integrations before committing to a paid plan.
How are customer profiles managed in Customer Insights?
Customer profiles are automatically created based on data unification. Your Customer Insights license allows you to manage profiles, analyze behaviors, and personalize engagements.
Can Customer Insights be customized for specific industries?
Yes, Customer Insights can be customized with industry-specific templates. These configurations help businesses tailor their insights based on unique industry requirements.
Are AI models in Customer Insights customizable?
Customer Insights includes customizable AI models that allow businesses to define parameters for customer engagement predictions and data analysis.
Is Customer Insights included with Dynamics 365 Sales?
No, Customer Insights is a separate product from Dynamics 365 Sales and requires its own license. However, it integrates seamlessly with Sales to enrich customer data.
How are security measures handled for customer data?
Customer Insights adheres to strict data security standards, ensuring that customer data is encrypted, and role-based access limits sensitive information access to authorized users.
