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In this paper, we propose a novel relaying scheme for packet transmission over fading channels, which improves the spectral efficiency of cooperative diversity systems by utilizing limited feedback from the destination. Our scheme capitalizes on the fact that relaying is only required when direct transmission suffers deep fading. We calculate the packet error rate for the proposed efficient incremental relaying (EIR) scheme with both amplify and forward and decode and forward relaying. We compare the performance of the EIR scheme with the threshold-based incremental relaying (TIR) scheme. It is shown that the efficiency of the TIR scheme is better for lower values of the threshold. However, the efficiency of the TIR scheme for higher values of threshold is outperformed by the EIR. In addition, three new threshold-based adaptive EIR are devised to further improve the efficiency of the EIR scheme. We calculate the packet error rate and the efficiency of these new schemes to provide the analytical insight.