North Star metric
The North Star metric is a single, specific measurement that best reflects your product's core value and aligns teams around a shared definition of success. Unlike comprehensive dashboards with numerous KPIs, a North Star metric provides clarity and focus.
Effective North Star metrics share several characteristics:
- Reflects customer value: Directly measures how well you deliver on your core value proposition
- Indicates growth potential: Correlates strongly with long-term business outcomes
- Actionable: Teams can influence it through product decisions and initiatives
- Simple: Easy to understand and communicate across the organization
Examples of North Star metrics include Spotify's "time spent listening," Airbnb's "nights booked," and Facebook's "daily active users." The right metric varies based on your business model and value proposition.
Product managers use North Star metrics to:
- Guide product roadmap decisions
- Rally cross-functional teams around shared goals
- Evaluate feature impact more consistently
- Communicate product strategy to stakeholders[1]
Pro Tip: Your North Star metric should measure value delivered, not just activity. For example, "messages sent" might indicate activity, but "conversations that receive responses" better reflects whether users are receiving value from a messaging platform.
