Choosing your North Star Metric

A North Star metric is a business-specific measure intended to predict long-term success by linking customer value, progress, and revenue, with companies typically using one to three metrics depending on their size and goals. Examples include Facebook’s monthly active users, Airbnb’s nights booked, new subscriber or account totals for sales-focused businesses, first completed orders for user activation, mobile orders delivered for e-commerce, and active trial users for SaaS firms. A useful framework combines a product vision with a measurable outcome, commonly focused on transactions, productivity, or customer attention, while broader metric categories include revenue, customer and consumption growth, engagement, growth efficiency, and user experience. Unlike OKRs, which organize quarterly objectives across organizational levels, a North Star metric provides an ongoing central measure that aligns work toward the company’s vision. Effective adoption also requires clear responsibilities, communication, collaboration, and incentives that support shared business goals.

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