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North-Star Metrics: Reply Rate, SQLs, and CAC Payback

6 June, 2025

6 min read

If you’re a technical founder doing sales for the first time, it’s easy to get lost in vanity metrics — number of emails sent, page views, open rates. Most of them don’t matter unless they lead to actual conversations, deals, and revenue.

Instead, here are three metrics worth focusing on. Think of them as your north star:

  1. Reply Rate

  2. SQLs (Sales Qualified Leads)

  3. CAC Payback Period

1. Reply Rate – Are People Even Responding?

This is the % of people who reply to your cold outreach (email, LinkedIn, etc.).

If you send 100 cold emails and get 5 replies, your reply rate is 5%.

  • Most cold emails get 1–5%. If you’re getting under 1%, your message probably isn’t working.

  • If you’re above 10%, that’s great. You likely have strong targeting or good messaging.

  • Even a “no” counts early on — it shows you’re reaching the right inbox.

Why it matters: It tells you if your message is landing. Low replies? Either your list is off or your value prop isn’t clear.

How to improve:

Try A/B testing subject lines, change your intro, personalize better. Even small tweaks can double response rates.

2. SQLs – Are You Creating Real Opportunities?

SQL = Sales Qualified Lead. It means the prospect is:

  • Interested

  • A good fit (right company size, industry, role)

  • Has a real need you can solve

Example: You had a discovery call and they said, “Yeah, this could help — can you show me a demo?”

Why it matters:

This is the real pipeline. You can’t close deals without SQLs. If you’re not generating these, you don’t have traction yet — no matter how many emails you sent.

What’s a good number?

Start simple: aim to create 3–5 SQLs per week. If you’re early-stage, even 10/month is strong.

3. CAC Payback – Are You Getting Paid Back Fast Enough?

This one sounds more complicated, but it’s simple.

  • CAC (Customer Acquisition Cost) = total money you spent to get a customer

  • Payback Period = how many months of revenue it takes to recover that cost

Example:

  • You spent $2,000 to close a customer.

  • They pay $500/month.

  • Your payback period = 4 months.

Why it matters:

Investors love short payback periods. It means your GTM is efficient and scalable.

Under 12 months is healthy. 5–7 months is strong. Over 18? That’s a red flag — unless you’re sure the customer will stick around for years.

How FuseAI Helps Improve These

→ Boosts Reply Rate

FuseAI helps personalize outreach at scale. It can tailor intros, track what messaging works, and optimize timing. The result: better replies, less spray-and-pray.

→ Creates More SQLs

It finds high-fit leads, enriches them with useful context, and helps schedule follow-ups. You spend more time on real conversations and less on admin. That leads to more qualified opps.

→ Lowers CAC Payback

FuseAI replaces multiple tools (CRM, enrichment, sequencer) and reduces the need for a large SDR team. That cuts your cost per customer. It also helps move deals faster with smart nudges and automations — bringing in revenue sooner.

Final Thought

These 3 metrics work like a GTM dashboard:

  • Reply Rate shows if people are paying attention

  • SQLs show if they’re serious

  • CAC Payback shows if you’re doing it sustainably

Track them. Improve them. Don’t waste time chasing busywork metrics that don’t move the business forward. These are the ones that count.