What Is Your “North Star Metric?” (And How to Find It)

A north star metric is a crucial tool for companies to measure the success of their apps by encapsulating the core value delivered to customers, as initially coined by Sean Ellis. This singular metric aligns product teams by providing a clear, common goal that informs all decisions and helps measure the progress of product initiatives. By focusing on a north star metric, businesses can make strategic decisions, implement new systems, and create changes that push metrics in the right direction, ensuring alignment with business goals and user satisfaction. Notable examples of successful north star metrics include Zoom's weekly hosted meetings, Facebook's monthly active users, Netflix's watch time, Spotify's time spent listening, Airbnb's number of nights booked, and Slack's messages sent within the organization. Although typically one north star metric is used to maintain focus, complex apps may require multiple metrics to account for diverse audiences. Product analytics tools like Mixpanel and Amplitude assist in identifying and monitoring these metrics, ultimately enhancing user experience and driving growth.