Defining your North Star Metric

A North Star Metric is the single most important measurement that best reflects your product's success. It serves as a compass for your entire team, helping everyone focus on what truly matters for your business and customers.

The best North Star Metrics combine customer value and company success. For example, Spotify uses a North Star Metric called "Time Spent Listening" rather than just subscription revenue, because more listening time means users are getting more value from the service and in turn generating more revenue for Spotify. Airbnb uses "Nights Booked" as their North Star because it represents successful connections between hosts and guests, the core value of their platform, which translates to more revenue.^[1]

Finding your North Star Metric starts with understanding what customers truly value about your product. When users find more value, business growth naturally follows. Also keep in mind that a good North Star Metric is influenced by multiple teams, creating alignment across the entire organization.