What is a North Star Metric?

When growth is broken down to actual value delivered to customers it becomes clear that this is not just a marketing responsibility.

Most teams within an organization play some role in delivering value to customers. Sales and marketing attract new customers into the funnel, but the product and customer support teams play a key role in ensuring prospects and customers are able to experience the core value of a product.

Coordinating these siloed teams to work together on growth initiatives can be very challenging without a metric that focuses them around a common goal.

Once you understand your North Star Metric, it’s important to document the variables that work together to move this metric. These variables generally include parts of the customer lifecycle such as new user signups, new user activations, and improving engagement/retention of users.

By understanding the relationship between these interdependent variables and your current conversion rates, you’ll gain insights into potential high leverage opportunities for growing your NSM.