How to Measure and Improve Sales Efficiency: The Complete Guide

Your sales team is not inefficient. Your system is.

The problem isn’t motivation—it’s friction. Time lost on admin. Bad data. Tools that don’t talk to each other. Reps juggling 10 tabs and missing key follow-ups.

In 2025, growth doesn’t come from hiring more salespeople.

It comes from improving sales efficiency.

This guide shows you exactly how to measure and improve it, with actionable metrics, process optimizations, and the right CRM setup. If you're running or scaling a B2B sales team, this is your roadmap.

1. What Is Sales Efficiency?

👉 Sales efficiency is how effectively your team converts resources (time, tools, people, budget) into revenue.

It’s not about working harder. It’s about working smarter, and maximizing output with minimum waste.

2. Why Sales Efficiency Matters

In a cost-conscious environment, high efficiency is non-negotiable.

Here’s why it matters:

• Your CAC increases as markets mature
• Sales cycles are getting longer
• Reps spend less than 35% of their time actually selling (source: Forrester)
• Revenue teams are under pressure to do more with less

Sales efficiency is now a growth lever, not a KPI.

3. Sales Efficiency Formula and Core Metrics

Sales efficiency formula

💡 Sales Efficiency Ratio = Revenue / (Sales + Marketing Costs)

If it’s >1, you’re generating more revenue than you're spending.

If it’s <1, you're burning cash.

But that’s just the start. Here are other key sales efficiency metrics to track:

💡 Pro Tip: Use your CRM to track and automate all of the above. folk CRM tracks activity timelines, deal stages, and engagement levels natively.

👉 Try folk CRM for free

4. How to Measure Sales Efficiency in Your Team

Step 1: Audit Current KPIs

• Are you tracking the right things?
• Is your CRM data accurate and up-to-date?

Step 2: Calculate Your Baseline

• Use the formula above
• Benchmark each metric across your team or segments

Step 3: Visualize Your Pipeline

• Where are deals stalling?
• Which activities correlate with closes?

6. How to Improve Sales Efficiency (Framework + Tactics)

Here’s a proven framework for operational sales efficiency:

1. Centralize Your Stack

Ditch spreadsheets, sticky notes, and 7-tab toggling.

2. Automate Manual Work

• Auto-assign leads
• Trigger follow-ups
• Log activities without lifting a finger

3. Prioritize High-Intent Leads

Use lead scoring and behavior tracking (page visits, email opens)

→ Focus your reps’ time on warm deals

4. Build Templates for Repeat Actions

• Email sequences
• Demo confirmations
• Onboarding steps

5. Set Weekly Efficiency Targets

• % time spent selling
• Calls per rep
• Pipeline velocity

Track. Learn. Improve.

8. Why Your CRM Is the Backbone of Sales Efficiency

Sales efficiency lives or dies by how well your CRM supports your team. A high-performing CRM doesn't just store data, it drives action.

• Centralized workflows: Everything in one place—emails, follow-ups, deal stages—reduces friction.
• Real-time visibility: Reps and managers track pipelines instantly and act faster.
• Accurate forecasting: Clean data = reliable forecasts.
• Automation: Routine tasks handled automatically.
• Performance coaching: Real metrics reveal what’s working—and what’s not.
• Consistent buyer experience: Teams stay aligned across every interaction.

Why Folk CRM Is Built for Sales Efficiency

folk CRM was designed for small, agile sales teams that move fast and can’t afford bloat.

Try folk CRM free for 14 days and experience what sales efficiency really feels like.

👉 Start your trial now

Conclusion

Sales efficiency is a key driver of sustainable growth. By focusing on the right metrics and removing friction from your sales process, you empower your team to perform at their best—consistently and predictably.