The quantifiable benefits of Microsoft Dynamics 365 Commerce
Forrester Consulting conducted a comprehensive TEI study to understand the financial benefits and cost savings associated with Microsoft Dynamics 365 Commerce.
The study focused on a composite organization representative of six specialty retail companies. This composite organization has 2,000 employees and generates $500 million in annual revenue. It sells products through retail stores, wholesale, and ecommerce channels, with revenue distribution as follows: 70% from retail stores, 20% from wholesale, and 10% from ecommerce. The company operates 100 retail stores and five digital storefronts. The average sales price for in-store and online items is $50. Each retail store is equipped with five POS terminals and staffed by 10 full-time retail sales associates and four full-time stockroom clerks.
Here was the tangible impact of Microsoft Dynamics 365 for Commerce on retail businesses, demonstrating significant cost savings and enhanced operational efficiency.
1: Improved inventory management
Microsoft Dynamics 365 Commerce provided enhanced inventory visibility to the interviewed organization, allowing retail store clerks to locate items within the stockroom and specific bins easily. Automated item replenishment was triggered when stock levels were low, ensuring stores never ran out of essential items. This efficient inventory management saved clerks time in receiving and managing stock, contributing to a quantified benefit of $3.7 million.
2: Reduced training time for retail associates
The intuitive Microsoft Dynamics 365 Point of Sale (POS) system simplified the training process for new and seasonal retail sales associates. Because the system was user-friendly, new hires required minimal training and quickly became proficient in serving customers. This reduction in training time resulted in cost savings valued at $1.9 million.
3: Increased retail store sales
With more effective inventory replenishment and streamlined sales processes, the retail stores experienced increased sales. The improved availability of products, fewer transactional errors, and enhanced in-store promotions created a better overall customer experience. This uplift in retail store sales generated an additional $1.5 million in revenue.
5: Boosted ecommerce sales
Dynamics 365 Commerce enabled the interviewed companies to customize their eCommerce websites easily, enhancing the customer experience with a more attractive look and feel. The ability to quickly add new products and promotions and embedded content that boosted SEO resulted in higher traffic and better customer engagement. These improvements led to a 25% increase in eCommerce sales, valued at $1.9 million.
6: Simplified commerce operations through integration
The companies interviewed simplified their commerce operations by integrating Dynamics 365 Commerce with other Dynamics 365 modules and the broader Microsoft tech stack. This integration reduced the workload for tech teams and business users, resulting in a 15% productivity savings and a cost benefit of $0.3 million.
Ready to transform your retail experience with Dynamics 365 Commerce?
Microsoft Dynamics 365 Commerce seamlessly bridges digital and physical store systems, unifying data from multiple touchpoints and enhancing it with AI and machine learning. Connecting this data to your in-store team members can unlock powerful insights and create a truly modern retail experience.
With its comprehensive features, Dynamics 365 Commerce enables retailers to deliver personalized customer interactions, support contactless selling, maximize in-store revenue, streamline operations, and minimize losses due to fraud. It empowers merchants to create a more engaging and efficient shopping experience, setting the stage for the store of the future.
If you're ready to deliver unified, personalized, and seamless buying experiences for your customers, Microsoft Dynamics 365 Commerce implementation is the way to go. For queries related to Dynamics 365 Commerce pricing or to get started on your digital transformation journey, choose Confiz - your trusted Microsoft Dynamics 365 retail partner. Contact us today at
marketing@confiz.com.