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.