Hi Ishan,

Salesforce is a great tool for tracking daily activities and scheduled events! Through the use of reports and dashboards, you can show daily sales activity and what each of your team members is doing/have done. All you would need to do is set up a way by which you measure the rates of calls (completing vs. open activities) and through the power of one to better analyze activities (not going to get in deep on what this is, but just know that there are ways to show ratios of the calls and events).

The best way to remember Activities is by the following:
-Activities are made up of (a) tasks and (b) events

When it comes to how these relate to Outlook, Events (or Calendar meeting times) will match up with salesforce given the start and end time that you designate in either salesforce.com or in Outlook. Tasks will also sync with salesforce and show up in your To-Dos in Outlook. 

Salesforce for Outlook is also a great tool in that it creates an easy bridge for your users to add emails to salesforce w/o copy and pasting (just click a button and it's automatically added in SFDC to the contact you sent). The only issue that some people have, which has less to do with Outlook & SFDC, is that Emails don't sync where they are supposed to. The reason for this is that users haven't built in the necessary contacts into Salesforce. Basically, SFO tries to look for a contact to relate to in Salesforce but because it doesn't exist it throws the email to an empty queue.

In Sum:
Dashboards & Reports will help your users track their daily activities (tasks and events)
Salesforce for Outlook will help make it possible by creating a bridge between the two interfaces


I hope you find the above solution helpful. If it does, please mark as Best Answer to help others too.