The North Star Metric

The North Star Metric is the single metric that best captures the core value your product creates. It's the number you optimize above all others.

Characteristics

• Directly reflects customer value
• Leading indicator of revenue
• Measurable with your data
• Single number, not a ratio

Examples

• Airbnb: nights booked
• Spotify: time listening
• Slack: messages sent within teams
• Amazon: monthly active buyers

How to pick

Start with what customers actually do when they get value. Messages sent, photos shared, meetings booked. Not signups or logins.

Avoiding vanity

Signups, downloads, page views are vanity. North Star should be measurable engagement with the core value.

What to do with this

• Pick one North Star metric, not five, the whole point is alignment and five metrics give everyone an excuse
• Measure value delivered, not value promised, signups are promises, "messages sent" or "nights booked" are value
• Review the North Star weekly as a team, if the team doesn't know the number without looking, it's not really the North Star
• Re-examine the North Star annually, what measured value at $1M ARR may be the wrong metric at $10M, evolve it deliberately
• Align compensation with the North Star where possible, nothing drives behavior change faster than what's being rewarded