What is a North Star metric?
A North Star metric is the one measure that best reflects the core value customers get from your product or service. Teams use it to align their work, since improving it should lead to long-term growth.
Last reviewed .
What makes a good North Star metric
A good one reflects real customer value, predicts long-term revenue, and is something your teams can influence. It should be simple enough that everyone understands it.
Examples include the number of weekly active users who complete a key action, or the number of orders delivered. Revenue alone is rarely a good choice, because it reports results and doesn't show whether customers are getting value.
How it works with other metrics
The North Star sits above other measures. Supporting metrics, often called input metrics, such as acquisition, activation, and retention, show the levers that move it.
This links daily work to the larger goal. A team can see how their own metric feeds the shared one.
Pitfalls to avoid
Don't pick a vanity metric that rises without value to customers. Review the metric as the business changes, since a measure that suits an early product may not suit a mature one.
Common questions
How do you choose a North Star metric?
Identify the moment customers get real value, then find a measure that counts how often it happens. Test whether it moves with retention and revenue.
Should a business have only one North Star metric?
That's the idea, since a single focus aligns teams. Many companies still track a small set of supporting metrics alongside it.
What is the difference between a North Star metric and a KPI?
A KPI can track any important goal. A North Star metric is the one top-level measure of customer value, and KPIs often support it.
Can revenue be a North Star metric?
It can, but it often isn't ideal, since it reports an outcome and doesn't show whether customers are happy. Many teams choose a usage or value metric that leads to revenue.
Want help putting this to work?
Tell us where your marketing stands today, and we'll show you what to do first.