What is a North Star Metric? - Deepstash
What is a North Star Metric?

What is a North Star Metric?

Curated from: blog.growthhackers.com

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Drive Your Company’s Sustainable Growth with a North Star Metric

Drive Your Company’s Sustainable Growth with a North Star Metric

The North Star Metric (NSM) is a powerful concept that has emerged in recent years from Silicon Valley companies with breakout growth. It helps teams move beyond driving fleeting, surface-level growth to instead focus on generating long-term retained customer growth.

The North Star Metric is the single metric that best captures the core value that your product delivers to customers. Optimizing your efforts to grow this metric is key to driving sustainable growth across your full customer base.


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Finding Your North Star Metric

To uncover your North Star Metric you must understand the value your most loyal customers get from using your product. Then you should try to quantify this value in a single metric. 

There may be more than one metric that works, but try to boil it down to a single NSM.


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Focusing Your Team with 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.


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Using Your North Star Metric to Drive Growth

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.


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