Strategy & economics

North star metric

Also known as: NSM · lead metric

The single metric that best captures a product's delivered value — chosen because moving it should move revenue, retention, and growth together.

A north star metric is the one leading indicator a company rallies around — usually a measure of delivered value (not revenue itself). For Airbnb: nights booked. For Spotify: time spent listening. For Slack: messages sent within teams above the paid threshold. A good north star is a leading indicator (moves before revenue does), captures actual value delivered (not vanity metrics like signups), and is sensitive to product + lifecycle interventions (you can move it). The alternative — chasing revenue as the primary metric — is a trailing indicator and disconnects the team from the underlying customer behaviour. Lifecycle programs calibrate against the north star because it's the metric most directly movable by retention work.

See also

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