10 Ways to Improve Sales Efficiency in 2025

In every business, strategies are crafted, deals are made, and profits are pursued, 

But there exists a hidden force that can make or break a business’ journey toward success. 

Efficiency. That’s right! 

Efficiency in business is like the wind beneath the wings of a soaring eagle, pushing it to new heights with minimal effort. 

To be precise, efficiency is the ability to achieve maximum output with minimal wasted resources, time, or effort. 

And within sales, efficiency is a pretty important aspect of a healthy sales pipeline. It is the guiding star that illuminates the way to increased revenue, more conversions, and sustainable growth. 

In this blog, we will delve into the impact of sales efficiency, actionable insights to boost it, calculation methods, and the metrics you need to track. Let’s get started with the basics. 

What is Sales Efficiency? 

Sales efficiency refers to the ability of a sales team/rep to generate better results with the least amount of resources, time, and effort. 

It is about finding ways to simplify and optimize every stage of the sales cycle, from lead generation and prospecting to qualification, presentation, negotiation, and closing. 

That doesn’t mean your reps have to constantly make more calls or send more emails. Instead, they must focus on high-quality leads, prioritize activities that have better ROI, and eliminate unnecessary steps without hampering sales success.

In a nutshell, sales efficiency is about focusing on the right activities, with the right people, at the right time.

But, isn’t this sales effectiveness? 

Definitely not! Keep reading! 

Sales Efficiency vs. Sales Effectiveness

Businesses often use sales efficiency and sales effectiveness interchangeably. While they are closely related, they focus on different aspects of the sales process. 

Sales efficiency is working optimally towards achieving the sales goals while sales effectiveness is more about setting the right goals and making sure progress is made in that direction. 

Think of the concept of sales efficiency as a car’s speed, while sales effectiveness is the destination the car is trying to reach. Sales efficiency involves optimizing the car’s speed, fuel, and minimizing stops, allowing it to reach its destination faster and with less cost. 

In contrast, sales effectiveness is all about choosing the right route, navigating through traffic, and making necessary adjustments to ensure the car reaches its desired destination.

Sales effectiveness is the quality of the actions, while efficiency is the speed of the actions.

Julie Thomas, President and CEO at Value Selling Associates

To achieve success in sales, it’s essential to prioritize both efficiency and effectiveness. 

Neglecting efficiency could result in a sales team struggling to achieve its goals within the required timeframe. Meanwhile, ignoring effectiveness could lead to a lot of effort being put in without making any progress toward the right goals.

Enough of pessimism! Let’s shift our perspective to how sales efficiency can positively impact your business outcomes. 

How Does Sales Efficiency Boost Revenue?

Sales efficiency can indeed make a significant difference in the success and growth of a business. Here are some ways in which sales efficiency can have a positive impact:

1. Resource optimization

Sales efficiency plays an integral role in optimizing resources within the sales function. By identifying areas of inefficiency and eliminating low-impact activities, businesses can allocate their resources effectively. 

This includes streamlining sales processes, automating routine tasks, and leveraging tech to introduce productivity in processes. It also helps to identify the most effective sales channels and optimize human resources by aligning suitable responsibilities with the reps’ skill sets. Optimal resource allocation helps businesses create a lean and effective sales operation.

2. Identify improvement areas & refine sales performance

As a company strives for sales efficiency, it carries out a thorough evaluation of its sales processes and team performance, exposing multiple areas for improvement and growth opportunities.

By analyzing data and metrics, companies are able to pinpoint bottlenecks, inefficiencies, and areas of underperformance. This then allows them to correct measures for increasing productivity, optimizing workflows, and eliminating blockers. 

3. Improved customer experience

Sales efficiency goes beyond just closing deals; it also focuses on delivering an exceptional customer experience throughout the sales journey. 

Efficient sales processes ensure that every interaction with customers is meaningful, valuable, and tailored to their specific requirements, leading to higher customer satisfaction, retention, and ultimately, efficient growth.

Eric Welsh, Director of RevOps at Demostack defines efficient growth as “every team in a go-to-market function working towards the same objective.” Check out his full conversation with us below.

Ep #7: Driving Efficient Growth With RevOps ft. Eric Welsh

4. Improved sales forecasting

Sales efficiency empowers businesses to improve their sales forecasting capabilities as well. With streamlined processes, data analysis, historical trends, and market insights, businesses can collect relevant data points consistently and promptly, facilitating more accurate sales forecasting. 

This enables them to allocate resources effectively, set realistic targets, and make informed business decisions.

5. Adaptability to market changes

Sales efficiency equips businesses with the agility and flexibility to adapt to dynamic market conditions. 

By continuously monitoring market trends, customer behavior, and competitor activities, companies can proactively adjust their sales strategies and approaches. This allows them to seize emerging opportunities and overcome challenges. 

Efficient sales processes also help them to quickly respond to changing customer needs, competitive landscape, and tech advancements, ensuring sustained growth. 

Measuring Sales Efficiency

Measuring sales efficiency is a must for businesses to assess their performance and identify areas where improvement is needed. 

One commonly used formula to measure sales efficiency is:

Sales Efficiency = (Revenue / Sales & Marketing Costs) x 100

This formula calculates the ratio of revenue generated to the costs incurred in sales and marketing activities. It provides a quantitative measure of how effectively a company is utilizing its resources to generate revenue. 

A higher sales efficiency ratio indicates that the business is generating more revenue relative to its sales and marketing costs, suggesting a more efficient and effective sales operations.

Now, you may want to ask – what is a good sales efficiency ratio?

A high sales efficiency ratio generally indicates a strong sales performance, as it signifies that the revenue generated is substantial relative to the investment in sales and marketing efforts. However, a “good” ratio can vary across industries, business models, and market conditions.

In some industries with lower margins or high competition, a sales efficiency ratio of around 3 to 5 may be considered reasonable. This means that for every dollar spent on sales and marketing, the company generates $3 to $5 in revenue. However, industries with higher margins or specialized products/services may have higher sales efficiency ratios.

Key Sales Efficiency Metrics you Must Track 

You must note that sales efficiency should not be evaluated in isolation but should be considered alongside other performance indicators that we will be talking about in this section:

1. Activity levels of sales reps

Tracking the activity levels of sales reps, such as the number of sales calls made and customer interactions, provides insights into the effectiveness of their sales efforts.

2. Customer acquisition cost (CAC)

CAC is the total cost incurred in acquiring a new customer, including marketing and sales expenses. By measuring CAC, businesses can evaluate the efficiency of their customer acquisition process. 

Note: Comparing CAC against customer lifetime value (CLV) helps determine the return on investment (ROI) for acquiring new customers. 

3. Customer lifetime value (CLV)

CLV represents the estimated total value a customer brings to a business throughout their relationship. Monitoring CLV helps assess the long-term revenue potential of customers and guides sales & marketing strategies.

4. Lead response time

Lead response time measures how quickly sales reps respond to leads or inquiries. Monitoring lead response time helps identify any delays in the sales process, allowing businesses to take corrective actions.

4. Sales pipeline velocity

Sales pipeline velocity measures the speed at which deals progress through the sales pipeline. Monitoring sales pipeline velocity helps identify areas where deals may be getting stuck or experiencing delays. 

It is advisable to measure the overall sales efficiency along with these key metrics so that the picture you get is as clear as a crystal providing a comprehensive view of the effectiveness and efficiency of the sales function.

10 Ways to Improve Sales Efficiency 

Now without any further ado, we will explore 10 proven ways to improve sales efficiency, enabling businesses to elevate their sales performance and drive sustainable success. Let’s dive in!

1. Set SMART goals

Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals is a fundamental step in improving sales efficiency. SMART goals provide clarity and direction, ensuring that sales teams have clear objectives to work towards. 

By defining specific targets that are measurable and achievable within a realistic timeframe, sales professionals can focus their efforts and prioritize their activities effectively. Moreover, people with SMART goals achieve 10X more than people with no goals at all. 

2. Coach reps on leading indicators

Customized coaching of your sales team is vital in improving sales efficiency. It simply means providing guidance and support to sales team members unique to their strengths, weaknesses, and needs. 

This personalized attention helps sales professionals get better at what they do, overcome blockers, and refine their sales techniques. 

Effective coaching can cover various aspects, including product knowledge, objection handling, negotiation skills, regular feedback, role-playing exercises, and more. By addressing these areas, sales teams can perform at their best achieving sales efficiency.

No wonder companies with dynamic sales coaching programs achieve 28% higher win rates.

3. Know who you’re selling to

Buyer personas are fictional representations of your ideal customers, based on research and analysis of their demographics, behaviors, motivations, and pain points. 

By creating buyer personas, sales teams gain a deeper understanding of their target audience and can tailor their sales approach accordingly. This includes customizing messaging, addressing specific pain points, and highlighting the unique value propositions that resonate with each persona. 

Besides, 36% of companies have created shorter sales cycles using buyer personas. This approach not only improves sales efficiency but also enhances customer satisfaction and increases the likelihood of successful conversions. 

4. Adhere to the right playbooks

Adhering to a proven sales methodology and process is essential for consistent and efficient sales performance. A structured sales process provides a framework for sales activities, ensuring that all necessary steps are followed and opportunities are effectively pursued. 

Whereas, a well-defined sales methodology helps sales reps understand the buyer’s journey, from prospecting to closing, and guides them in applying the most appropriate strategies and techniques at each stage. 

By aligning sales efforts with defined processes, businesses can minimize guesswork, increase productivity, and improve conversion rates. 

Surprisingly, 81% of sales and marketing teams still don’t take the time to review and correct their sales processes. Shocker, right? 

5. Choose the right tech stack

Deploying the right tech and tools can significantly impact your sales efficiency. CRM(Customer Relationship Management) systems help streamline sales processes, centralize customer data, and automate tasks. No wonder, the global market for CRMs hit $52.64 billion in 2020.

Sales analytics tools provide valuable insights into sales performance, trends, and customer behavior, empowering data-driven decision-making. Communication & collaboration tools facilitate information sharing and real-time collaboration among team members

By investing in the right tech, businesses can optimize sales operations, improve productivity, and gain a comprehensive view of their sales pipeline & performance.

6. Optimize rep productivity

Improving sales rep productivity is a critical component of achieving sales efficiency. One effective way is to use automation including data capture tools. Automation tools streamline repetitive tasks like data entry, follow-up reminders, lead nurturing and more.

Additionally, data capture tools like Nektar help gather and analyze customer data, enabling sales reps to tailor their sales approach according to the buyer. Moreover, early adoption of data capture tools had eliminated 55% data entry by 2020, 

7. Assign sales territories strategically

A sales territory refers to a designated area, industry segment, or customer account category that is assigned to a particular sales representative or team. 

Only after carefully considering factors such as account size & complexity, customer segmentation, market potential, and sales reps’ skills and experience. businesses must assign sales territories to their reps. 

By strategically dividing sales territories, businesses can efficiently utilize sales teams and resources. This approach also allows reps to tailor their sales strategies accordingly. 

8. Focus on sales onboarding 

When new sales reps join the team, a well-structured onboarding program ensures they quickly become productive and aligned with the company’s sales processes and strategies. 

It involves providing comprehensive training on products, sales techniques, market positioning, and understanding the target audience. By doing this, businesses can accelerate their ramp-up time and enable them to start generating sales revenue sooner. 

A robust sales onboarding program not only improves individual sales performance but also contributes to overall sales efficiency and team success. Furthermore, companies with comprehensive onboarding programs have higher levels of employee retention.

9. Invest in sales enablement 

42% of sales reps feel they don’t have enough information before making a call. You obviously don’t want this to happen with your reps, do you? 

One-word solution: Sales Enablement 

Sales enablement refers to providing sales teams with the right resources, tools, and information to effectively engage prospects and close deals. By aligning marketing collateral, sales materials, product documentation, and training content, businesses can empower their sales teams. Sales enablement material includes 

• Sales playbooks
• Case studies
• Demos
• Customer success stories & more

As a matter of fact, sales enablement has evolved beyond traditional materials and now includes innovative technologies like virtual reality and gamification. These technologies have so much potential to drive sales efficiency that by 2025, the global gamification sales revenue is estimated to reach $32B.

10. Align sales and marketing teams

Did you know, organizations with aligned departments can achieve up to 38% higher sales win rates?

When two functions – sales, and marketing work together seamlessly, it creates a cohesive approach that maximizes the impact of both teams. By establishing clear communication, joint planning, and shared objectives, sales and marketing teams can create a unified customer experience and efficiently target the right audience. 

Shared KPIs are fantastic for aligning the teams.

Eric Welsh, Director of RevOps at Demostack

The alignment of sales and marketing efforts also leads to reduced duplication and improved lead generation, nurturing, and conversion rates, ultimately bettering the sales efficiency. 

And here we are at the end of this blog. You and your sales team are now ready to achieve maximum sales efficiency. 

Don’t Fly Blind Without the Right Data 

We all agree data is king today. It provides insights that businesses need to make growth-driven decisions. And when it comes to sales efficiency, having access to the right data is essential. Without it, you are probably making guesses to achieve sales efficiency. 

The right tools can take the guesswork out of your processes. Nektar is one such tool that helps drive sales efficiency by giving you complete visibility into your pipeline from lead to cash. It can help teams capture data, provide active contacts, offer buying group intelligence, and automate mundane tasks like data entry. 

Talk to one of our experts at Nektar to see how exactly it can bring efficiency to your sales teams.