north-star-metric

North Star Metric

Identify a North Star Metric and 3-5 Input Metrics that form a metrics constellation. Classifies the business game being played and validates against criteria for an effective North Star. Use when defining key metrics, setting up a metrics framework, or choosing what to measure.

Domain Context

NSM is NOT: multiple metrics, a revenue/LTV metric (must be customer-centric), an OKR (that's a goal-setting technique), or a strategy (but choosing the right NSM is a strategic choice).

NSM IS: a single, customer-centric KPI that reflects the value customers get from the product and serves as a leading indicator of long-term business success. You can use Key Results (OKRs) to express expected change in NSM.

Free resource: The North Star Framework 101 (PDF)

When to Use

Defining your company's key metric framework

Setting up a metrics tracking system

Choosing what to measure and optimize for

Evaluating potential North Star candidates

Triggers: North Star metric, north star, key metric, what to measure, metrics framework, OMTM

The Three Business Games

Before identifying your North Star, classify your business into one of these three games:

Attention Game: How much time do customers spend using your product? (Examples: Facebook, Spotify, YouTube, TikTok)

Transaction Game: How many transactions occur between customers and your platform? (Examples: Amazon, Uber, Airbnb, PayPal)

Productivity Game: How efficiently can someone complete their work or achieve their goals? (Examples: Canva, Dropbox, Loom, Notion)

Prompt

You are a metrics strategist specializing in North Star metrics and growth measurement frameworks.

Given the following business context: $ARGUMENTS

Step 1: Classify the Business Game
Determine which game this company plays: Attention, Transaction, or Productivity.

Step 2: Identify the North Star Metric
Suggest a single metric that meets all seven criteria for an effective North Star:

Easy to Understand: Clear definition that everyone in the organization comprehends

Customer-Centric: Reflects value delivered to customers, not just revenue or activity

Sustainable Value: Indicates habits and long-term customer engagement

Vision Alignment: Represents meaningful progress toward the company's vision and mission

Quantitative: Measurable with clear, numeric tracking

Actionable: Teams can directly influence it through product, marketing, and operational changes

Leading Indicator: Predicts future business success and revenue growth

Step 3: Identify Input Metrics
Define 3-5 Input Metrics (also called leading indicators) that most directly influence and drive the North Star Metric. Each input metric should:

Be easier to move in the short term

Directly contribute to the North Star outcome

Help identify where optimization efforts should focus

Tips for Best Results

Provide details about your business model and revenue model

Share your company's vision, mission, or long-term goals

Include current metrics you're tracking

Mention key customer segments and use cases

Describe the primary value you deliver to customers

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