Glossary
What is a North Star metric?
A North Star metric is the single measure a company chooses as the best indicator of the value customers get, which, if it grows, drives long-term revenue. Examples are weekly active teams, invoices sent or listings published. It aligns product, marketing and growth work around one outcome.
Choosing one
A good North Star:
- Reflects value delivered to customers.
- Predicts revenue over time.
- Can be influenced by the team's work.
- Is simple enough that everyone understands it.
Examples
| Product | North Star |
|---|---|
| Messaging app | Messages sent by weekly active teams |
| Invoicing | Invoices paid through the product |
| Analytics | Weekly active projects receiving data |
| Directory submission tool | Listings live per customer |
Input metrics
Break the North Star into inputs teams can move: new users, activation rate, frequency of use, retention. Growth work targets inputs; the North Star shows whether they add up.
Example
A team picks "listings live per customer" as its North Star. Marketing improves sign-ups, product improves the submission success rate, and both see their work in the same number.
Common mistakes
Picking a metric the team can't influence, picking revenue (which lags), changing it every quarter, or choosing something easy to game, like sign-ups.
FAQ
Is revenue a good North Star?
Usually not; revenue lags. Pick the value that leads to revenue.
Can a company have several North Stars?
One is the point; supporting metrics sit below it.
Who popularised the North Star metric?
Growth teams at companies like Facebook and Amplitude's product writing made it common.
How often should a North Star change?
Rarely; when the business model or core value changes.