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What is a North Star metric? | Signals & Stories
<!DOCTYPE html><html lang="en"><head><meta charSet="utf-8"/><title>What is a North Star metric? | Signals & Stories</title><meta name="robots" content="index,follow"/><meta name="description" content="Insights for digital builders"/><meta name="twitter:card" content="summary_large_image"/><meta name="twitter:site" content="@mixpanel"/><meta name="twitter:creator" content="@mixpanel"/><meta property="og:title" content="What is a North Star metric? | Signals & Stories"/><meta property="og:description" content="Insights for digital builders"/><meta property="og:url" content="https://mixpanel.com/blog/north-star-metric/"/><meta property="og:type" content="article"/><meta property="article:published_time" content="2018-12-10T21:15:00.000Z"/><meta property="article:author" content="https://mixpanel.com/blog/author/mark-simborg/11"/><meta property="og:image" content="https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1024x577.png"/><meta property="og:image:alt" content="Insights for digital builders"/><meta property="og:image:width" content="1024"/><meta property="og:image:height" content="577"/><meta property="og:locale" content="en_US"/><meta property="og:site_name" content="Mixpanel"/><link rel="canonical" href="https://mixpanel.com"/><meta name="viewport" content="width=device-width, initial-scale=1, minimum-scale=1, viewport-fit=cover"/><meta name="google-site-verification" content="OoTPHx7nojGJ8UvFO0fEHn0FiLWWVBCHGkYKyB_Ip7s"/><meta name="google-site-verification" content="OKZ9uKMu6jWiTNMKW3wroo6LyYjBefrWPzomPzTKryI"/><meta name="google-site-verification" content="ktQYex5oJA4yoT3FArp8cp2SSpuEEO1yIOnXyPYMmw4"/><meta name="google-site-verification" content="vbHRCzhbDW8G307pT3kTkmEsSKT29m1qep-2RLpihoY"/><meta name="google-site-verification" content="tXb9P6eqlMpF7tgXb7YqyzKptWgiLFoIJMdNnP_1fVg"/><meta name="google" content="nositelinkssearchbox"/><meta name="msapplication-TileColor" content="#ffffff"/><meta name="theme-color" content="#ffffff"/><link rel="manifest" href="https://mixpanel.com/blog/pwa/manifest.json"/><link rel="apple-touch-icon" sizes="180x180" href="https://mixpanel.com/favicons/apple-touch-icon.png"/><link rel="icon" type="image/png" sizes="32x32" href="https://mixpanel.com/favicons/favicon-32x32.png"/><link rel="icon" type="image/png" sizes="16x16" href="https://mixpanel.com/favicons/favicon-16x16.png"/><link rel="mask-icon" color="#7856ff" href="https://mixpanel.com/favicons/safari-pinned-tab.svg"/><script type="application/ld+json">{"@context":"https://schema.org","@type":"BreadcrumbList","@id":"https://mixpanel.com/north-star-metric/","itemListElement":[{"@type":"ListItem","position":1,"item":"https://mixpanel.com","name":"Home"},{"@type":"ListItem","position":2,"item":"https://mixpanel.com/blog","name":"Signals & Stories"}]}</script><script type="application/ld+json">{"@context":"https://schema.org","@type":"BlogPosting","datePublished":"2018-12-10T21:15:00.000Z","description":"A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress. If a metric hits those three points, and every department contributes to improving it, the company will grow sustainably—or so the theory goes.","mainEntityOfPage":{"@type":"WebPage","@id":"https://mixpanel.com/blog/north-star-metric"},"headline":"What is a North Star metric?","image":["https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-150x150.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-300x169.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-768x432.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1024x577.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1536x865.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1200x676.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1400x788.png","https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-300x169.png"],"dateModified":"2024-09-19T14:16:02.000Z","author":{"@type":"Person","name":"Mark Simborg"},"publisher":{"@type":"Organization","name":"Mixpanel"},"isAccessibleForFree":true}</script><meta name="next-head-count" content="36"/><script type="text/javascript" id="load-mixpanel-script" data-nscript="beforeInteractive">var MIXPANEL_CUSTOM_LIB_URL="https://cdn.mxpnl.com/libs/mixpanel-2-latest.min.js";(function(f,b){if(!b.__SV){var e,g,i,h;window.mixpanel=b;b._i=[];b.init=function(e,f,c){function g(a,d){var b=d.split(".");2==b.length&&(a=a[b[0]],d=b[1]);a[d]=function(){a.push([d].concat(Array.prototype.slice.call(arguments,0)))}}var a=b;"undefined"!==typeof c?a=b[c]=[]:c="mixpanel";a.people=a.people||[];a.toString=function(a){var d="mixpanel";"mixpanel"!==c&&(d+="."+c);a||(d+=" (stub)");return d};a.people.toString=function(){return a.toString(1)+".people (stub)"};i="disable time_event track track_pageview track_links track_forms track_with_groups add_group set_group remove_group register register_once alias unregister identify name_tag set_config reset opt_in_tracking opt_out_tracking has_opted_in_tracking has_opted_out_tracking clear_opt_in_out_tracking start_batch_senders people.set people.set_once people.unset people.increment people.append people.union people.track_charge people.clear_charges people.delete_user people.remove".split(" "); for(h=0;h<i.length;h++)g(a,i[h]);var j="set set_once union unset remove delete".split(" ");a.get_group=function(){function b(c){d[c]=function(){call2_args=arguments;call2=[c].concat(Array.prototype.slice.call(call2_args,0));a.push([e,call2])}}for(var d={},e=["get_group"].concat(Array.prototype.slice.call(arguments,0)),c=0;c<j.length;c++)b(j[c]);return d};b._i.push([e,f,c])};b.__SV=1.2;e=f.createElement("script");e.type="text/javascript";e.async=!0;e.src="undefined"!==typeof MIXPANEL_CUSTOM_LIB_URL? 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class="BasicImage_image__Lq9wS Author_avatar__a_1Go" style="color:transparent" src="https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/09/cropped-1715612566243-96x96.jpeg"/></div></a><div class="Author_author__alZtn Author_hasVertical__Yxzk6"><a id="mark-simborg-what-is-a-north-star-metric__Name" class="Author_link__SCiLs" href="/blog/author/mark-simborg/"><div class="Typography_bodyMd__Dt0yK Typography_bold__nCycN Author_authorName__Aon4I">Mark Simborg</div></a><div class="Typography_bodySm__TdD9P Author_authorTitle__RInlc">Editor @ Mixpanel</div></div></div></div><div class="ArticleDetails_container__H7AD2"><div class="ArticleDetails_authorInfoContainer__2M_0w"><div class="ArticleDetails_authorInfo__qKlPR"><div class="Typography_captionSm__40ZIi Typography_bold__nCycN ArticleDetails_authorInfoName__SWFST">Last Edited:</div><div class="Typography_captionSm__40ZIi">Sep 19, 2024</div></div><div class="ArticleDetails_authorInfo__qKlPR"><div class="Typography_captionSm__40ZIi Typography_bold__nCycN ArticleDetails_authorInfoName__SWFST">Published:</div><div class="Typography_captionSm__40ZIi">Dec 10, 2018</div></div></div></div></div></div></div></div></div></header><main class="Post_postBase__JxloD Post_analytics__QUbVl"><div class="GridContainer_gridContainer__QWz73"><div class="ShareActions_shareActions--stacked__QRb2e"><ul class="ShareActions_shareActionList__ZgEMh"><li class="ShareActions_shareActionItem__EVYN_"><button class="Button_transparent__mpg39 Button_primary__uemGM Button_small__vkGtt Button_root__UFS1q ShareActions_shareActionButton__LC7YZ"><span class="Button_phantomBackground___2yx_"></span><div class="Typography_captionSm__40ZIi Typography_bold__nCycN Button_text__zLCIF">Twitter</div></button></li><li class="ShareActions_shareActionItem__EVYN_"><button class="Button_transparent__mpg39 Button_primary__uemGM Button_small__vkGtt Button_root__UFS1q ShareActions_shareActionButton__LC7YZ"><span class="Button_phantomBackground___2yx_"></span><div class="Typography_captionSm__40ZIi Typography_bold__nCycN Button_text__zLCIF">LinkedIn</div></button></li><li class="ShareActions_shareActionItem__EVYN_"><button class="Button_transparent__mpg39 Button_primary__uemGM Button_small__vkGtt Button_root__UFS1q ShareActions_shareActionButton__LC7YZ ShareActions_shareActionButton--icon__grJ2X"><span class="Button_phantomBackground___2yx_"></span><div class="Typography_captionSm__40ZIi Typography_bold__nCycN Button_text__zLCIF"><svg width="100%" height="100%" viewBox="0 0 22 22" fill="none" xmlns="http://www.w3.org/2000/svg"><path fill-rule="evenodd" clip-rule="evenodd" d="M10.4076 11.3909C10.0657 11.1593 9.60375 11.2532 9.3758 11.6005C9.14786 11.9479 9.24025 12.4172 9.58217 12.6487C11.2703 13.792 13.1994 13.9175 14.5276 12.567L14.5277 12.567L16.9722 10.0835C18.3421 8.69184 18.3421 6.43546 16.9722 5.04377C15.6023 3.65208 13.3813 3.65208 12.0114 5.04377L10.9758 6.09574C10.6853 6.39093 10.6853 6.86954 10.9758 7.16473C11.2664 7.45993 11.7375 7.45993 12.0281 7.16473L13.0636 6.11276C13.8524 5.31146 15.1312 5.31146 15.92 6.11276C16.7087 6.91406 16.7087 8.21323 15.92 9.01453L13.4753 11.4981L13.4751 11.4983C12.8203 12.1641 11.7345 12.2895 10.4076 11.3909ZM11.592 10.6063C11.9339 10.8378 12.3959 10.744 12.6239 10.3966C12.8518 10.0493 12.7594 9.57995 12.4175 9.34839C10.7294 8.20509 8.80031 8.07967 7.47208 9.43008L7.472 9.43016L5.02743 11.9136C3.65752 13.3053 3.65752 15.5617 5.02743 16.9534C6.39734 18.3451 8.6184 18.3451 9.98831 16.9534L11.0238 15.9014C11.3144 15.6062 11.3144 15.1276 11.0238 14.8324C10.7332 14.5372 10.2621 14.5372 9.97155 14.8324L8.93604 15.8844C8.14728 16.6857 6.86845 16.6857 6.07969 15.8844C5.29093 15.0831 5.29093 13.7839 6.07969 12.9826L8.52434 10.4991L8.5246 10.4988C9.17934 9.833 10.2652 9.70764 11.592 10.6063Z" fill="currentColor"></path></svg><span class="ShareActions_srOnly__VvMra">Copy article link to clipboard</span></div></button></li></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress. If a metric hits those three points, and every department contributes to improving it, the company will grow sustainably—or so the theory goes.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Why is a North Star metric important?</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Teams use North Star <a href="https://mixpanel.com/topics/lean-product-development-metrics/">metrics</a> to get everyone in a company focused on one goal. Ninety percent of the world’s data has been created <a href="https://www.mediapost.com/publications/article/291358/90-of-todays-data-created-in-two-years.html">in just the past few years</a> and the profusion of analytical possibilities allow every department, every team, and even every contributor to chase their own metrics. If each team defines goals differently, they can work against each other and duplicate effort.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>When startup investor <a href="https://earthsky.org/brightest-stars/polaris-the-present-day-north-star">Sean Ellis</a> coined the term “North Star metric,” he intended it to reduce administration, simplify meetings, and align teams around the singular goal of growth. The term North Star metric—drawn from the common name for Polaris, the star that lies directly above the Earth’s Northern pole—is mostly rhetorical. Companies with complex business models can have multiple North Stars, and any given North Star metric is composed of sub-metrics anyway. Any company that literally foreswore all metrics in favor of just one, such as recurring revenue, would almost certainly fail. The North Star metric is, simply, an exercise in simplifying the overall company strategy into terms all can remember, understand, and apply.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>When the Egyptians built the pyramids, the Earth had a different North Star—<a href="https://earthsky.org/brightest-stars/polaris-the-present-day-north-star">Thuban</a>—but it’s crept out of alignment, just as Polaris will in time. Companies should feel equally free to reevaluate their North Star metrics to make sure they still point the right direction, and amend them when they prove flawed.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Benefits of a North Star metric</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>A North Star metric is meant to be a guide. It’s a compass pointing you in the right direction and keeping you focused on your primary goal of company growth and success based on what makes your customers happiest and keeps them coming back for more. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Specifically, having a North Star metric provides the benefits of:</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span>1. Alignment</span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Although different teams will have their own sub-goals and -metrics to focus on, having a North Star metric means the whole company will be aligned around the same goal and will be able to map their team’s goal to the North Star metric. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span>2. Transparency</span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>A North Star metric, since it measures company progress, can give everyone in your company a bird’s eye view of how the company is doing overall. This, in turn, can assuage employees who may be worried about the company’s future and thereby improve employee retention and reduce turnover. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span>3. Customer focus</span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Since your North Star Metric is the number that best reflects the value your company brings to its customers, it helps you stay focused on improving the customer experience in all ways, which has its own obvious benefits as far as bottom-line revenue and retention.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Fostering company-wide alignment, transparency, and a focus on the customer, your North Star is really the fuel to your growth engine. You can also see it as a type of glue or string that channels all the disparate goals and metrics from the various teams into a singular focus that drives your company to success. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>North Star Metric versus The One Metric That Matters</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>It’s important not to confuse a North Star metric with "The One Metric That Matters" (OMTM), a concept from the book <a href="http://leananalyticsbook.com/one-metric-that-matters/">Lean Analytics</a>. A North Star metric is a long-term guide, while the OMTM is for specific teams and projects over a fixed period of time (two to six months). </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>That said, using OMTMs can be beneficial for keeping projects on track, and OMTMs can fit nicely into North Star metrics and work to bolster the North Star metric by accelerating short-term goals and success. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>How a North Star metric works</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>In daily use, a North Star metric is broken down into smaller metrics that drive accountability and ownership at the individual level. Many of these sub-metrics are team-specific and actionable, so individual contributors can draw a clear connection between their daily duties and the North Star. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Take, for example, an <a href="https://mixpanel.com/solutions/retail-e-commerce/">e-commerce company</a> with the North Star metric “the number of new customers purchasing each week.” A merchandise buyer at that company could contribute to that parent goal by increasing sales in their category, whereas a web developer would contribute by reducing page load time. Both contribute, but in their own way. North Star metrics must also reflect <a href="https://mixpanel.com/blog/2018/08/27/build-more-useful-products-journey-maps/">the customer journey</a>, and measure whether users’ journeys are successful. In the case of the e-commerce company, measuring purchases indicates that buyers have completed their journey, and improving pieces of the journey—discovery, browsing, and checkout—speed customers along and drive more revenue.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Examples of North Star metrics</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span><strong>E-commerce</strong></span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>Number of weekly customers completing their first order</li><li>Value of daily purchases</li><li><a href="https://mixpanel.com/topics/how-to-calculate-lifetime-value/">Customer lifetime value (CLV)</a></li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span><strong>Consumer tech</strong></span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li><a href="https://mixpanel.com/topics/daily-active-users/">Number of daily active users (DAU)</a></li><li>Number of messages sent per day</li><li><a href="https://mixpanel.com/topics/what-is-customer-retention">Retention</a></li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span><strong>B2B SaaS</strong></span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>Number of trial accounts with over 3 users in their first week</li><li>Percentage year-two retention</li><li>Monthly-recurring revenue (MRR)</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span><strong>Media</strong></span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>Signups and retention</li><li>Number of daily active visitors</li><li>Total read time</li><li>Total watch time</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><h4 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingFourStyle__0lJWd"><span><strong>Fintech</strong></span></h4></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>Total assets under management</li><li>Number of daily active users</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span></span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>How to find a North Star metric for your product</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>To find their North Star metric, companies must decide what is truly essential to the business. Companies are complex and succeed and fail for lots of reasons. But what are the pillars to the business that are, as an architect might say, load-bearing and that would ruin the company if they alone failed (ie — they’re “too big to fail”)? </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>For many teams, those pillars are <a href="https://mixpanel.com/blog/2018/02/01/product-teams-need-ux-research/">making customers happy</a>, <a href="https://mixpanel.com/blog/2018/08/27/develop-measure-user-adoption-strategy/">generating profit</a>, and <a href="https://mixpanel.com/blog/2018/08/01/behavioral-analytics-guide/">measuring progress</a> toward those goals. A metric that simply makes money without satisfying customers will fail in the long run, as will a company that satisfies customers without being profitable. And a metric that doesn’t measure progress in a way that allows teams to act on its insights and change their behaviors isn’t useful. A North Star metric must reflect all three factors, tailored to each business. Some methods for feeling out a North Star metric:</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>Ask "What is essential to the business’s functioning?" Prioritize a list.</li><li>Ask "What <a href="https://mixpanel.com/topics/important-user-engagement-metrics-apps/">KPIs and metrics</a> measure the top few, key factors?"</li><li>Ask "What metric encapsulates all of the above?"</li><li>Build a metric hierarchy with the North Star metric on top of the pyramid.</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Like a seed, North Star metrics need fertile ground to grow. Companies that select a North Star need the right culture and infrastructure. Without cross-silo relationships and a willingness to prioritize the company good above the team good, some employees may reject the North Star metric, especially if they must change their behavior significantly, or if, like many sales teams, their compensation structure presents a conflict of interest.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span></span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_quoteBlock__tSpL3 PostBlocks_centerText__meMQs"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-10__VUo6W GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><div class="Typography_bodyXxlSerif__99I_5 PostBlocks_quoteBlockType__Htsnm"></div><cite class="Typography_bodySm__TdD9P"></cite></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>“An effective north star metric is a product manager’s best friend. It provides cross-functional alignment on goals and tasks, and an objective barometer for success when a product ships. Even products that generate direct revenue require an alternative product metric that tells a more holistic story of what’s going on. When your north star metric is clear, product ideation becomes a lot easier. Instead of asking yourself 'What should I build next?' you should be asking 'What feature or product is most likely to move this metric the most?”</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span></span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Measuring progress against your North Star metric over time</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Companies also need <a href="https://mixpanel.com/topics/user-analytics-overview/">the right analytics tools</a> to measure progress toward their North Star metric and sub-metrics. Without user-friendly analytics that teams can access at a whim, companies can’t tell whether they’re succeeding and can’t course-correct. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Most teams find <a href="https://mixpanel.com/content/guide-to-product-analytics/intro/">product analytics</a> (or <a href="https://mixpanel.com/topics/user-analytics-overview/">user analytics)</a> vital to measuring their North Star metric. Product analytics provide user-level insights that most analytics platforms—especially free ones—don’t capture. More specifically, user analytics can:</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li><a href="https://mixpanel.com/topics/introduction-unified-user-profiles/">Track individual users across platforms</a></li><li>Generate reports and dashboards</li><li><a href="https://mixpanel.com/automatic-insights/">Use machine learning to detect anomalies in the dat</a></li><li>Offer a user-friendly interface so the whole team can access insights</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>With powerful analytics, any team can easily see both how their own metrics are fitting into their company’s North Star metric and whether or not they need to course-correct to better support the North Star metric.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span></span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_quoteBlock__tSpL3 PostBlocks_centerText__meMQs"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-10__VUo6W GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><div class="Typography_bodyXxlSerif__99I_5 PostBlocks_quoteBlockType__Htsnm"></div><cite class="Typography_bodySm__TdD9P"></cite></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>“Great PMs understand that their specific product’s context is a more important factor for defining metrics than any industry best practices. Creating a north star metric has its benefits–chiefly, simplicity in measuring progress and communicating it within and outside the team responsible for the product.“</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span></span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Example of using product analytics for a North Star metric</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Let’s use the cycling and running app Strava as an example, theory-crafting based on what a product designer and Strava user would do.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Strava is a SaaS company that offers a free plan but generates most of its revenue from monthly subscribers that share certain attributes:</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>They most frequently use the same features.</li><li>The features that subscribers use the most are the features responsible for renewed subscriptions.</li><li>Hence, these features keep the monthly revenue flowing.</li><li>And, these are the features users view as valuable enough to pay for. </li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Strava’s North Star metrics should thus tie directly into the features the paying customers use, and Strava can (and should) use product analytics to find the answers to these questions:</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>How often are paying customers using a certain feature?</li><li>How often are paying customers sharing their use of that feature with non-paying customers?</li><li>What’s driving paying customers to keep using these features?</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Product teams can then experiment and see if their ideas can increase the use of a paid feature and also the number of free users trying that feature. They can use product analytics to inform the answers to these questions:</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_gridItem__L5Wbn"><ul class="Typography_bodyMd__Dt0yK PostBlocks_listBlockList__xQpr0"><span><li>How can Strava get non-paying customers to try paid features?</li><li>Once a free user starts a trial, how can Strava get users to renew?</li><li>What can Strava measure in the product as an indicator that will lead to new paying customers?</li></span></ul></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Then, once Strava establishes its North Star metrics, it can use a platform like Mixpanel to monitor those metrics, with the focus being on whether the North Star metrics are improving and why.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Can companies aim for more than one North Star?</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Companies typically have only one North Star metric. However, a single north star can be limiting, especially if your company has multiple core products with separate goals—ie, a music streaming service looking for both more music subscribers and paid podcasts. As such, we prefer the softer framing of a “focus metric” working in conjunction with other key performance indicators (KPIs).</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>For more on how to find your focus metric, click <a href="https://mixpanel.com/content/guide-to-product-metrics/full-report/">here</a>. </span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-7__cbsWH GridItem_gridItemSize-lg-9__ydca7 GridItem_gridItemSize-xl-9__1MT_u PostBlocks_gridItem__L5Wbn"><h2 class="Typography_headingXl__AQ2pZ PostBlocks_headingBlockType__fDUxA PostBlocks_standardHeadingTwoStyle__6XCS6"><span>Ready to find your North Star?</span></h2></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>North Star metrics can be an effective strategy for aligning all teams around a singular goal, provided they’re not taken too literally, are supported by a flexible culture, and measured with analytics tools that helps teams tell whether it’s still guiding the way.</span></p></div></div><div class="GridContainer_gridContainer__QWz73 GridContainer_centered__0Rat4 PostBlocks_paragraphBlock__mbsc4 PostBlocks_hasParagraphLinks__Ce646"><div class="GridItem_gridItem___tZ3h GridItem_gridItemGap-base__Ym1zp GridItem_gridItemSize-sm-4__13k9h GridItem_gridItemSize-med-6__AUpF9 GridItem_gridItemSize-lg-8__5tZWi GridItem_gridItemSize-xl-7__Wc4Wa PostBlocks_paragraphBlockGridItem__OsXIn PostBlocks_gridItem__L5Wbn"><p class="Typography_bodyMd__Dt0yK PostBlocks_paragraphBlockParagraph__cnv_5"><span>Remember that your ultimate goal is growth and success, and sometimes you will need to pivot and hence rejigger or reframe your North Star metric (or focus metrics) to reflect your company’s new mission. In that sense, it’s always okay to backstep and rethink things, as the last thing you want is to be chasing the wrong star. </span></p></div></div><div class="ShareActions_shareActions--centered___lZoj"><div class="Typography_bodyMd__Dt0yK Typography_bold__nCycN ShareActions_shareLabel__cfpMD">Share article</div><ul class="ShareActions_shareActionList__ZgEMh"><li class="ShareActions_shareActionItem__EVYN_"><button class="Button_transparent__mpg39 Button_primary__uemGM Button_small__vkGtt Button_root__UFS1q ShareActions_shareActionButton__LC7YZ"><span class="Button_phantomBackground___2yx_"></span><div class="Typography_captionSm__40ZIi Typography_bold__nCycN Button_text__zLCIF">Twitter</div></button></li><li class="ShareActions_shareActionItem__EVYN_"><button class="Button_transparent__mpg39 Button_primary__uemGM Button_small__vkGtt Button_root__UFS1q ShareActions_shareActionButton__LC7YZ"><span class="Button_phantomBackground___2yx_"></span><div class="Typography_captionSm__40ZIi 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If a metric hits those three points, and every department contributes to improving it, the company will grow sustainably—or so the theory goes.","twitterDescription":"","twitterTitle":"","twitterImage":null,"schema":{"__typename":"SEOPostTypeSchema","articleType":[],"pageType":["WebPage"]},"opengraphUrl":"https://thesignalprod.wpenginepowered.com/north-star-metric/","opengraphImage":{"__typename":"MediaItem","mediaDetails":{"__typename":"MediaDetails","sizes":[{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-150x150.png","width":"150","height":"150","name":"thumbnail"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-300x169.png","width":"300","height":"169","name":"medium"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-768x432.png","width":"768","height":"432","name":"medium_large"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1024x577.png","width":"1024","height":"577","name":"large"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1536x865.png","width":"1536","height":"865","name":"1536x1536"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1200x676.png","width":"1200","height":"676","name":"genesis-block-theme-featured-image"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1400x788.png","width":"1400","height":"788","name":"genesis-block-theme-featured-image-wide"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-300x169.png","width":"300","height":"169","name":"genesis-block-theme-logo"}]}}},"categories":{"__typename":"PostToCategoryConnection","nodes":[{"__typename":"Category","slug":"analytics"}]},"tags":{"__typename":"PostToTagConnection","nodes":[],"edges":[]},"author":{"__typename":"NodeWithAuthorToUserConnectionEdge","node":{"__typename":"User","name":"Mark Simborg","description":"Editor @ Mixpanel","avatar":{"__typename":"Avatar","height":96,"width":96,"url":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/09/cropped-1715612566243-96x96.jpeg"},"databaseId":11,"seo":{"__typename":"SEOUser","metaDesc":""}}},"editorBlocks":[{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress. If a metric hits those three points, and every department contributes to improving it, the company will grow sustainably—or so the theory goes."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Why is a North Star metric important?","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Teams use North Star \u003ca href=\"https://mixpanel.com/topics/lean-product-development-metrics/\"\u003emetrics\u003c/a\u003e to get everyone in a company focused on one goal. Ninety percent of the world’s data has been created \u003ca href=\"https://www.mediapost.com/publications/article/291358/90-of-todays-data-created-in-two-years.html\"\u003ein just the past few years\u003c/a\u003e and the profusion of analytical possibilities allow every department, every team, and even every contributor to chase their own metrics. If each team defines goals differently, they can work against each other and duplicate effort."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"When startup investor \u003ca href=\"https://earthsky.org/brightest-stars/polaris-the-present-day-north-star\"\u003eSean Ellis\u003c/a\u003e coined the term “North Star metric,” he intended it to reduce administration, simplify meetings, and align teams around the singular goal of growth. The term North Star metric—drawn from the common name for Polaris, the star that lies directly above the Earth’s Northern pole—is mostly rhetorical. Companies with complex business models can have multiple North Stars, and any given North Star metric is composed of sub-metrics anyway. Any company that literally foreswore all metrics in favor of just one, such as recurring revenue, would almost certainly fail. The North Star metric is, simply, an exercise in simplifying the overall company strategy into terms all can remember, understand, and apply."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"When the Egyptians built the pyramids, the Earth had a different North Star—\u003ca href=\"https://earthsky.org/brightest-stars/polaris-the-present-day-north-star\"\u003eThuban\u003c/a\u003e—but it’s crept out of alignment, just as Polaris will in time. Companies should feel equally free to reevaluate their North Star metrics to make sure they still point the right direction, and amend them when they prove flawed."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Benefits of a North Star metric","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"A North Star metric is meant to be a guide. It’s a compass pointing you in the right direction and keeping you focused on your primary goal of company growth and success based on what makes your customers happiest and keeps them coming back for more. "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Specifically, having a North Star metric provides the benefits of:"}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"1. Alignment","level":4}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Although different teams will have their own sub-goals and -metrics to focus on, having a North Star metric means the whole company will be aligned around the same goal and will be able to map their team’s goal to the North Star metric. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"2. Transparency","level":4}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"A North Star metric, since it measures company progress, can give everyone in your company a bird’s eye view of how the company is doing overall. This, in turn, can assuage employees who may be worried about the company’s future and thereby improve employee retention and reduce turnover. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"3. Customer focus","level":4}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Since your North Star Metric is the number that best reflects the value your company brings to its customers, it helps you stay focused on improving the customer experience in all ways, which has its own obvious benefits as far as bottom-line revenue and retention."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Fostering company-wide alignment, transparency, and a focus on the customer, your North Star is really the fuel to your growth engine. You can also see it as a type of glue or string that channels all the disparate goals and metrics from the various teams into a singular focus that drives your company to success. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"North Star Metric versus The One Metric That Matters","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"It’s important not to confuse a North Star metric with \"The One Metric That Matters\" (OMTM), a concept from the book \u003ca href=\"http://leananalyticsbook.com/one-metric-that-matters/\"\u003eLean Analytics\u003c/a\u003e. A North Star metric is a long-term guide, while the OMTM is for specific teams and projects over a fixed period of time (two to six months). "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"That said, using OMTMs can be beneficial for keeping projects on track, and OMTMs can fit nicely into North Star metrics and work to bolster the North Star metric by accelerating short-term goals and success. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"How a North Star metric works","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"In daily use, a North Star metric is broken down into smaller metrics that drive accountability and ownership at the individual level. Many of these sub-metrics are team-specific and actionable, so individual contributors can draw a clear connection between their daily duties and the North Star. "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Take, for example, an \u003ca href=\"https://mixpanel.com/solutions/retail-e-commerce/\"\u003ee-commerce company\u003c/a\u003e with the North Star metric “the number of new customers purchasing each week.” A merchandise buyer at that company could contribute to that parent goal by increasing sales in their category, whereas a web developer would contribute by reducing page load time. Both contribute, but in their own way. North Star metrics must also reflect \u003ca href=\"https://mixpanel.com/blog/2018/08/27/build-more-useful-products-journey-maps/\"\u003ethe customer journey\u003c/a\u003e, and measure whether users’ journeys are successful. In the case of the e-commerce company, measuring purchases indicates that buyers have completed their journey, and improving pieces of the journey—discovery, browsing, and checkout—speed customers along and drive more revenue."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Examples of North Star metrics","level":2}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eE-commerce\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eNumber of weekly customers completing their first order\u003c/li\u003e\u003cli\u003eValue of daily purchases\u003c/li\u003e\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/how-to-calculate-lifetime-value/\"\u003eCustomer lifetime value (CLV)\u003c/a\u003e\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eConsumer tech\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/daily-active-users/\"\u003eNumber of daily active users (DAU)\u003c/a\u003e\u003c/li\u003e\u003cli\u003eNumber of messages sent per day\u003c/li\u003e\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/what-is-customer-retention\"\u003eRetention\u003c/a\u003e\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eB2B SaaS\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eNumber of trial accounts with over 3 users in their first week\u003c/li\u003e\u003cli\u003ePercentage year-two retention\u003c/li\u003e\u003cli\u003eMonthly-recurring revenue (MRR)\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eMedia\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eSignups and retention\u003c/li\u003e\u003cli\u003eNumber of daily active visitors\u003c/li\u003e\u003cli\u003eTotal read time\u003c/li\u003e\u003cli\u003eTotal watch time\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eFintech\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eTotal assets under management\u003c/li\u003e\u003cli\u003eNumber of daily active users\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"How to find a North Star metric for your product","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"To find their North Star metric, companies must decide what is truly essential to the business. Companies are complex and succeed and fail for lots of reasons. But what are the pillars to the business that are, as an architect might say, load-bearing and that would ruin the company if they alone failed (ie — they’re “too big to fail”)? "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"For many teams, those pillars are \u003ca href=\"https://mixpanel.com/blog/2018/02/01/product-teams-need-ux-research/\"\u003emaking customers happy\u003c/a\u003e, \u003ca href=\"https://mixpanel.com/blog/2018/08/27/develop-measure-user-adoption-strategy/\"\u003egenerating profit\u003c/a\u003e, and \u003ca href=\"https://mixpanel.com/blog/2018/08/01/behavioral-analytics-guide/\"\u003emeasuring progress\u003c/a\u003e toward those goals. A metric that simply makes money without satisfying customers will fail in the long run, as will a company that satisfies customers without being profitable. And a metric that doesn’t measure progress in a way that allows teams to act on its insights and change their behaviors isn’t useful. A North Star metric must reflect all three factors, tailored to each business. Some methods for feeling out a North Star metric:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eAsk \"What is essential to the business’s functioning?\" Prioritize a list.\u003c/li\u003e\u003cli\u003eAsk \"What \u003ca href=\"https://mixpanel.com/topics/important-user-engagement-metrics-apps/\"\u003eKPIs and metrics\u003c/a\u003e measure the top few, key factors?\"\u003c/li\u003e\u003cli\u003eAsk \"What metric encapsulates all of the above?\"\u003c/li\u003e\u003cli\u003eBuild a metric hierarchy with the North Star metric on top of the pyramid.\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Like a seed, North Star metrics need fertile ground to grow. Companies that select a North Star need the right culture and infrastructure. Without cross-silo relationships and a willingness to prioritize the company good above the team good, some employees may reject the North Star metric, especially if they must change their behavior significantly, or if, like many sales teams, their compensation structure presents a conflict of interest."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreQuote","name":"core/quote","attributes":{"__typename":"CoreQuoteAttributes","citation":"\u003cstrong\u003eAkio Bandle\u003c/strong\u003e - Sr. Product Manager at ZipRecruiter","value":"\u003cp\u003e“An effective north star metric is a product manager’s best friend. It provides cross-functional alignment on goals and tasks, and an objective barometer for success when a product ships. Even products that generate direct revenue require an alternative product metric that tells a more holistic story of what’s going on. When your north star metric is clear, product ideation becomes a lot easier. Instead of asking yourself 'What should I build next?' you should be asking 'What feature or product is most likely to move this metric the most?”\u003c/p\u003e"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"“An effective north star metric is a product manager’s best friend. It provides cross-functional alignment on goals and tasks, and an objective barometer for success when a product ships. Even products that generate direct revenue require an alternative product metric that tells a more holistic story of what’s going on. When your north star metric is clear, product ideation becomes a lot easier. Instead of asking yourself 'What should I build next?' you should be asking 'What feature or product is most likely to move this metric the most?”"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Measuring progress against your North Star metric over time","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Companies also need \u003ca href=\"https://mixpanel.com/topics/user-analytics-overview/\"\u003ethe right analytics tools\u003c/a\u003e to measure progress toward their North Star metric and sub-metrics. Without user-friendly analytics that teams can access at a whim, companies can’t tell whether they’re succeeding and can’t course-correct. "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Most teams find \u003ca href=\"https://mixpanel.com/content/guide-to-product-analytics/intro/\"\u003eproduct analytics\u003c/a\u003e (or \u003ca href=\"https://mixpanel.com/topics/user-analytics-overview/\"\u003euser analytics)\u003c/a\u003e vital to measuring their North Star metric. Product analytics provide user-level insights that most analytics platforms—especially free ones—don’t capture. More specifically, user analytics can:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/introduction-unified-user-profiles/\"\u003eTrack individual users across platforms\u003c/a\u003e\u003c/li\u003e\u003cli\u003eGenerate reports and dashboards\u003c/li\u003e\u003cli\u003e\u003ca href=\"https://mixpanel.com/automatic-insights/\"\u003eUse machine learning to detect anomalies in the dat\u003c/a\u003e\u003c/li\u003e\u003cli\u003eOffer a user-friendly interface so the whole team can access insights\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"With powerful analytics, any team can easily see both how their own metrics are fitting into their company’s North Star metric and whether or not they need to course-correct to better support the North Star metric."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreQuote","name":"core/quote","attributes":{"__typename":"CoreQuoteAttributes","citation":"\u003cstrong\u003eShreyas Doshi\u003c/strong\u003e - Lead PM at Stripe; Former Lead PM at Twitter, Google, Yahoo","value":"\u003cp\u003e“Great PMs understand that their specific product’s context is a more important factor for defining metrics than any industry best practices. Creating a north star metric has its benefits–chiefly, simplicity in measuring progress and communicating it within and outside the team responsible for the product.“\u003c/p\u003e"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"“Great PMs understand that their specific product’s context is a more important factor for defining metrics than any industry best practices. Creating a north star metric has its benefits–chiefly, simplicity in measuring progress and communicating it within and outside the team responsible for the product.“"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Example of using product analytics for a North Star metric","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Let’s use the cycling and running app Strava as an example, theory-crafting based on what a product designer and Strava user would do."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Strava is a SaaS company that offers a free plan but generates most of its revenue from monthly subscribers that share certain attributes:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eThey most frequently use the same features.\u003c/li\u003e\u003cli\u003eThe features that subscribers use the most are the features responsible for renewed subscriptions.\u003c/li\u003e\u003cli\u003eHence, these features keep the monthly revenue flowing.\u003c/li\u003e\u003cli\u003eAnd, these are the features users view as valuable enough to pay for. \u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Strava’s North Star metrics should thus tie directly into the features the paying customers use, and Strava can (and should) use product analytics to find the answers to these questions:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eHow often are paying customers using a certain feature?\u003c/li\u003e\u003cli\u003eHow often are paying customers sharing their use of that feature with non-paying customers?\u003c/li\u003e\u003cli\u003eWhat’s driving paying customers to keep using these features?\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Product teams can then experiment and see if their ideas can increase the use of a paid feature and also the number of free users trying that feature. They can use product analytics to inform the answers to these questions:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eHow can Strava get non-paying customers to try paid features?\u003c/li\u003e\u003cli\u003eOnce a free user starts a trial, how can Strava get users to renew?\u003c/li\u003e\u003cli\u003eWhat can Strava measure in the product as an indicator that will lead to new paying customers?\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Then, once Strava establishes its North Star metrics, it can use a platform like Mixpanel to monitor those metrics, with the focus being on whether the North Star metrics are improving and why."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Can companies aim for more than one North Star?","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Companies typically have only one North Star metric. However, a single north star can be limiting, especially if your company has multiple core products with separate goals—ie, a music streaming service looking for both more music subscribers and paid podcasts. As such, we prefer the softer framing of a “focus metric” working in conjunction with other key performance indicators (KPIs)."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"For more on how to find your focus metric, click \u003ca href=\"https://mixpanel.com/content/guide-to-product-metrics/full-report/\"\u003ehere\u003c/a\u003e. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Ready to find your North Star?","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"North Star metrics can be an effective strategy for aligning all teams around a singular goal, provided they’re not taken too literally, are supported by a flexible culture, and measured with analytics tools that helps teams tell whether it’s still guiding the way."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Remember that your ultimate goal is growth and success, and sometimes you will need to pivot and hence rejigger or reframe your North Star metric (or focus metrics) to reflect your company’s new mission. In that sense, it’s always okay to backstep and rethink things, as the last thing you want is to be chasing the wrong star. 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is a North Star metric?","date":"2018-12-10T21:15:00","modified":"2024-09-19T14:16:02","slug":"north-star-metric","seo":{"__typename":"PostTypeSEO","metaDesc":"","metaKeywords":"","opengraphAuthor":"","opengraphDescription":"A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress. If a metric hits those three points, and every department contributes to improving it, the company will grow sustainably—or so the theory goes.","twitterDescription":"","twitterTitle":"","twitterImage":null,"schema":{"__typename":"SEOPostTypeSchema","articleType":[],"pageType":["WebPage"]},"opengraphUrl":"https://thesignalprod.wpenginepowered.com/north-star-metric/","opengraphImage":{"__typename":"MediaItem","mediaDetails":{"__typename":"MediaDetails","sizes":[{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-150x150.png","width":"150","height":"150","name":"thumbnail"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-300x169.png","width":"300","height":"169","name":"medium"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-768x432.png","width":"768","height":"432","name":"medium_large"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1024x577.png","width":"1024","height":"577","name":"large"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1536x865.png","width":"1536","height":"865","name":"1536x1536"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1200x676.png","width":"1200","height":"676","name":"genesis-block-theme-featured-image"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-1400x788.png","width":"1400","height":"788","name":"genesis-block-theme-featured-image-wide"},{"__typename":"MediaSize","sourceUrl":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/04/Screen-Shot-2021-06-24-at-4.40.20-PM-300x169.png","width":"300","height":"169","name":"genesis-block-theme-logo"}]}}},"categories":{"__typename":"PostToCategoryConnection","nodes":[{"__typename":"Category","slug":"analytics"}]},"tags":{"__typename":"PostToTagConnection","nodes":[],"edges":[]},"author":{"__typename":"NodeWithAuthorToUserConnectionEdge","node":{"__typename":"User","name":"Mark Simborg","description":"Editor @ Mixpanel","avatar":{"__typename":"Avatar","height":96,"width":96,"url":"https://thesignalprod.wpenginepowered.com/wp-content/uploads/2024/09/cropped-1715612566243-96x96.jpeg"},"databaseId":11,"seo":{"__typename":"SEOUser","metaDesc":""}}},"editorBlocks":[{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress. If a metric hits those three points, and every department contributes to improving it, the company will grow sustainably—or so the theory goes."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Why is a North Star metric important?","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Teams use North Star \u003ca href=\"https://mixpanel.com/topics/lean-product-development-metrics/\"\u003emetrics\u003c/a\u003e to get everyone in a company focused on one goal. Ninety percent of the world’s data has been created \u003ca href=\"https://www.mediapost.com/publications/article/291358/90-of-todays-data-created-in-two-years.html\"\u003ein just the past few years\u003c/a\u003e and the profusion of analytical possibilities allow every department, every team, and even every contributor to chase their own metrics. If each team defines goals differently, they can work against each other and duplicate effort."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"When startup investor \u003ca href=\"https://earthsky.org/brightest-stars/polaris-the-present-day-north-star\"\u003eSean Ellis\u003c/a\u003e coined the term “North Star metric,” he intended it to reduce administration, simplify meetings, and align teams around the singular goal of growth. The term North Star metric—drawn from the common name for Polaris, the star that lies directly above the Earth’s Northern pole—is mostly rhetorical. Companies with complex business models can have multiple North Stars, and any given North Star metric is composed of sub-metrics anyway. Any company that literally foreswore all metrics in favor of just one, such as recurring revenue, would almost certainly fail. The North Star metric is, simply, an exercise in simplifying the overall company strategy into terms all can remember, understand, and apply."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"When the Egyptians built the pyramids, the Earth had a different North Star—\u003ca href=\"https://earthsky.org/brightest-stars/polaris-the-present-day-north-star\"\u003eThuban\u003c/a\u003e—but it’s crept out of alignment, just as Polaris will in time. Companies should feel equally free to reevaluate their North Star metrics to make sure they still point the right direction, and amend them when they prove flawed."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Benefits of a North Star metric","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"A North Star metric is meant to be a guide. It’s a compass pointing you in the right direction and keeping you focused on your primary goal of company growth and success based on what makes your customers happiest and keeps them coming back for more. "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Specifically, having a North Star metric provides the benefits of:"}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"1. Alignment","level":4}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Although different teams will have their own sub-goals and -metrics to focus on, having a North Star metric means the whole company will be aligned around the same goal and will be able to map their team’s goal to the North Star metric. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"2. Transparency","level":4}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"A North Star metric, since it measures company progress, can give everyone in your company a bird’s eye view of how the company is doing overall. This, in turn, can assuage employees who may be worried about the company’s future and thereby improve employee retention and reduce turnover. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"3. Customer focus","level":4}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Since your North Star Metric is the number that best reflects the value your company brings to its customers, it helps you stay focused on improving the customer experience in all ways, which has its own obvious benefits as far as bottom-line revenue and retention."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Fostering company-wide alignment, transparency, and a focus on the customer, your North Star is really the fuel to your growth engine. You can also see it as a type of glue or string that channels all the disparate goals and metrics from the various teams into a singular focus that drives your company to success. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"North Star Metric versus The One Metric That Matters","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"It’s important not to confuse a North Star metric with \"The One Metric That Matters\" (OMTM), a concept from the book \u003ca href=\"http://leananalyticsbook.com/one-metric-that-matters/\"\u003eLean Analytics\u003c/a\u003e. A North Star metric is a long-term guide, while the OMTM is for specific teams and projects over a fixed period of time (two to six months). "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"That said, using OMTMs can be beneficial for keeping projects on track, and OMTMs can fit nicely into North Star metrics and work to bolster the North Star metric by accelerating short-term goals and success. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"How a North Star metric works","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"In daily use, a North Star metric is broken down into smaller metrics that drive accountability and ownership at the individual level. Many of these sub-metrics are team-specific and actionable, so individual contributors can draw a clear connection between their daily duties and the North Star. "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Take, for example, an \u003ca href=\"https://mixpanel.com/solutions/retail-e-commerce/\"\u003ee-commerce company\u003c/a\u003e with the North Star metric “the number of new customers purchasing each week.” A merchandise buyer at that company could contribute to that parent goal by increasing sales in their category, whereas a web developer would contribute by reducing page load time. Both contribute, but in their own way. North Star metrics must also reflect \u003ca href=\"https://mixpanel.com/blog/2018/08/27/build-more-useful-products-journey-maps/\"\u003ethe customer journey\u003c/a\u003e, and measure whether users’ journeys are successful. In the case of the e-commerce company, measuring purchases indicates that buyers have completed their journey, and improving pieces of the journey—discovery, browsing, and checkout—speed customers along and drive more revenue."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Examples of North Star metrics","level":2}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eE-commerce\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eNumber of weekly customers completing their first order\u003c/li\u003e\u003cli\u003eValue of daily purchases\u003c/li\u003e\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/how-to-calculate-lifetime-value/\"\u003eCustomer lifetime value (CLV)\u003c/a\u003e\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eConsumer tech\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/daily-active-users/\"\u003eNumber of daily active users (DAU)\u003c/a\u003e\u003c/li\u003e\u003cli\u003eNumber of messages sent per day\u003c/li\u003e\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/what-is-customer-retention\"\u003eRetention\u003c/a\u003e\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eB2B SaaS\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eNumber of trial accounts with over 3 users in their first week\u003c/li\u003e\u003cli\u003ePercentage year-two retention\u003c/li\u003e\u003cli\u003eMonthly-recurring revenue (MRR)\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eMedia\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eSignups and retention\u003c/li\u003e\u003cli\u003eNumber of daily active visitors\u003c/li\u003e\u003cli\u003eTotal read time\u003c/li\u003e\u003cli\u003eTotal watch time\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"\u003cstrong\u003eFintech\u003c/strong\u003e","level":4}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eTotal assets under management\u003c/li\u003e\u003cli\u003eNumber of daily active users\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"How to find a North Star metric for your product","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"To find their North Star metric, companies must decide what is truly essential to the business. Companies are complex and succeed and fail for lots of reasons. But what are the pillars to the business that are, as an architect might say, load-bearing and that would ruin the company if they alone failed (ie — they’re “too big to fail”)? "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"For many teams, those pillars are \u003ca href=\"https://mixpanel.com/blog/2018/02/01/product-teams-need-ux-research/\"\u003emaking customers happy\u003c/a\u003e, \u003ca href=\"https://mixpanel.com/blog/2018/08/27/develop-measure-user-adoption-strategy/\"\u003egenerating profit\u003c/a\u003e, and \u003ca href=\"https://mixpanel.com/blog/2018/08/01/behavioral-analytics-guide/\"\u003emeasuring progress\u003c/a\u003e toward those goals. A metric that simply makes money without satisfying customers will fail in the long run, as will a company that satisfies customers without being profitable. And a metric that doesn’t measure progress in a way that allows teams to act on its insights and change their behaviors isn’t useful. A North Star metric must reflect all three factors, tailored to each business. Some methods for feeling out a North Star metric:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eAsk \"What is essential to the business’s functioning?\" Prioritize a list.\u003c/li\u003e\u003cli\u003eAsk \"What \u003ca href=\"https://mixpanel.com/topics/important-user-engagement-metrics-apps/\"\u003eKPIs and metrics\u003c/a\u003e measure the top few, key factors?\"\u003c/li\u003e\u003cli\u003eAsk \"What metric encapsulates all of the above?\"\u003c/li\u003e\u003cli\u003eBuild a metric hierarchy with the North Star metric on top of the pyramid.\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Like a seed, North Star metrics need fertile ground to grow. Companies that select a North Star need the right culture and infrastructure. Without cross-silo relationships and a willingness to prioritize the company good above the team good, some employees may reject the North Star metric, especially if they must change their behavior significantly, or if, like many sales teams, their compensation structure presents a conflict of interest."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreQuote","name":"core/quote","attributes":{"__typename":"CoreQuoteAttributes","citation":"\u003cstrong\u003eAkio Bandle\u003c/strong\u003e - Sr. Product Manager at ZipRecruiter","value":"\u003cp\u003e“An effective north star metric is a product manager’s best friend. It provides cross-functional alignment on goals and tasks, and an objective barometer for success when a product ships. Even products that generate direct revenue require an alternative product metric that tells a more holistic story of what’s going on. When your north star metric is clear, product ideation becomes a lot easier. Instead of asking yourself 'What should I build next?' you should be asking 'What feature or product is most likely to move this metric the most?”\u003c/p\u003e"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"“An effective north star metric is a product manager’s best friend. It provides cross-functional alignment on goals and tasks, and an objective barometer for success when a product ships. Even products that generate direct revenue require an alternative product metric that tells a more holistic story of what’s going on. When your north star metric is clear, product ideation becomes a lot easier. Instead of asking yourself 'What should I build next?' you should be asking 'What feature or product is most likely to move this metric the most?”"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Measuring progress against your North Star metric over time","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Companies also need \u003ca href=\"https://mixpanel.com/topics/user-analytics-overview/\"\u003ethe right analytics tools\u003c/a\u003e to measure progress toward their North Star metric and sub-metrics. Without user-friendly analytics that teams can access at a whim, companies can’t tell whether they’re succeeding and can’t course-correct. "}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Most teams find \u003ca href=\"https://mixpanel.com/content/guide-to-product-analytics/intro/\"\u003eproduct analytics\u003c/a\u003e (or \u003ca href=\"https://mixpanel.com/topics/user-analytics-overview/\"\u003euser analytics)\u003c/a\u003e vital to measuring their North Star metric. Product analytics provide user-level insights that most analytics platforms—especially free ones—don’t capture. More specifically, user analytics can:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003e\u003ca href=\"https://mixpanel.com/topics/introduction-unified-user-profiles/\"\u003eTrack individual users across platforms\u003c/a\u003e\u003c/li\u003e\u003cli\u003eGenerate reports and dashboards\u003c/li\u003e\u003cli\u003e\u003ca href=\"https://mixpanel.com/automatic-insights/\"\u003eUse machine learning to detect anomalies in the dat\u003c/a\u003e\u003c/li\u003e\u003cli\u003eOffer a user-friendly interface so the whole team can access insights\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"With powerful analytics, any team can easily see both how their own metrics are fitting into their company’s North Star metric and whether or not they need to course-correct to better support the North Star metric."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreQuote","name":"core/quote","attributes":{"__typename":"CoreQuoteAttributes","citation":"\u003cstrong\u003eShreyas Doshi\u003c/strong\u003e - Lead PM at Stripe; Former Lead PM at Twitter, Google, Yahoo","value":"\u003cp\u003e“Great PMs understand that their specific product’s context is a more important factor for defining metrics than any industry best practices. Creating a north star metric has its benefits–chiefly, simplicity in measuring progress and communicating it within and outside the team responsible for the product.“\u003c/p\u003e"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"“Great PMs understand that their specific product’s context is a more important factor for defining metrics than any industry best practices. Creating a north star metric has its benefits–chiefly, simplicity in measuring progress and communicating it within and outside the team responsible for the product.“"}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":""}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Example of using product analytics for a North Star metric","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Let’s use the cycling and running app Strava as an example, theory-crafting based on what a product designer and Strava user would do."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Strava is a SaaS company that offers a free plan but generates most of its revenue from monthly subscribers that share certain attributes:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eThey most frequently use the same features.\u003c/li\u003e\u003cli\u003eThe features that subscribers use the most are the features responsible for renewed subscriptions.\u003c/li\u003e\u003cli\u003eHence, these features keep the monthly revenue flowing.\u003c/li\u003e\u003cli\u003eAnd, these are the features users view as valuable enough to pay for. \u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Strava’s North Star metrics should thus tie directly into the features the paying customers use, and Strava can (and should) use product analytics to find the answers to these questions:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eHow often are paying customers using a certain feature?\u003c/li\u003e\u003cli\u003eHow often are paying customers sharing their use of that feature with non-paying customers?\u003c/li\u003e\u003cli\u003eWhat’s driving paying customers to keep using these features?\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Product teams can then experiment and see if their ideas can increase the use of a paid feature and also the number of free users trying that feature. They can use product analytics to inform the answers to these questions:"}},{"__typename":"CoreList","name":"core/list","attributes":{"__typename":"CoreListAttributes","values":"\u003cli\u003eHow can Strava get non-paying customers to try paid features?\u003c/li\u003e\u003cli\u003eOnce a free user starts a trial, how can Strava get users to renew?\u003c/li\u003e\u003cli\u003eWhat can Strava measure in the product as an indicator that will lead to new paying customers?\u003c/li\u003e"}},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreListItem","name":"core/list-item"},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Then, once Strava establishes its North Star metrics, it can use a platform like Mixpanel to monitor those metrics, with the focus being on whether the North Star metrics are improving and why."}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Can companies aim for more than one North Star?","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Companies typically have only one North Star metric. However, a single north star can be limiting, especially if your company has multiple core products with separate goals—ie, a music streaming service looking for both more music subscribers and paid podcasts. As such, we prefer the softer framing of a “focus metric” working in conjunction with other key performance indicators (KPIs)."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"For more on how to find your focus metric, click \u003ca href=\"https://mixpanel.com/content/guide-to-product-metrics/full-report/\"\u003ehere\u003c/a\u003e. "}},{"__typename":"CoreHeading","name":"core/heading","attributes":{"__typename":"CoreHeadingAttributes","content":"Ready to find your North Star?","level":2}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"North Star metrics can be an effective strategy for aligning all teams around a singular goal, provided they’re not taken too literally, are supported by a flexible culture, and measured with analytics tools that helps teams tell whether it’s still guiding the way."}},{"__typename":"CoreParagraph","name":"core/paragraph","attributes":{"__typename":"CoreParagraphAttributes","content":"Remember that your ultimate goal is growth and success, and sometimes you will need to pivot and hence rejigger or reframe your North Star metric (or focus metrics) to reflect your company’s new mission. In that sense, it’s always okay to backstep and rethink things, as the last thing you want is to be chasing the wrong star. 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