North Star Metric

What is a North Star Metric?

A North Star Metric is a key metric that best captures the core value a product delivers to its customers. It serves as a guiding measure for the entire company, helping align teams toward a common growth goal. Startups use the North Star Metric to focus efforts on what drives the most significant impact on growth, such as active users, revenue, or engagement.

Choosing a North Star Metric

• Customer Value: Focus on metrics that reflect the value delivered to customers.
• Growth Impact: Choose a metric that directly influences business growth.
• Measurability: Ensure the metric can be tracked and measured accurately over time.

Related Terms and Concepts

Key performance indicator (KPI), user engagement, growth metrics, product-market fit