North Star Metric (NSM)
What is a North Star Metric?
The single most important key indicator that best captures the core value your product delivers to its customers.
A North Star Metric (NSM) simplifies company strategy down to a single overarching focal point. It aligns the entire organization around delivering customer value above all else. If your NSM grows, it should guarantee that your business is fundamentally succeeding.
For example, Airbnb's North Star might be 'Nights Booked', while Spotify's might be 'Time spent listening to music'. OKRs are strictly used as the quarterly engines driving the organization toward that long-term North Star.
For example, Airbnb's North Star might be 'Nights Booked', while Spotify's might be 'Time spent listening to music'. OKRs are strictly used as the quarterly engines driving the organization toward that long-term North Star.
Vanity Metric
Registered user accounts (does not equal delivered value).
North Star Metric
Daily Active Users who complete a core workflow.
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