| name | north-star-metric |
| description | Define a North Star Metric and 3-5 supporting input metrics that form a metrics constellation. Classify the business game (Attention, Transaction, Productivity) and validate against 7 criteria for an effective North Star. Use when choosing a North Star Metric, setting up a metrics framework, learning about the North Star Framework, or deciding what to measure. |
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)
