North Star Metric
A North Star metric is the one measurement that’s most predictive of a company’s long-term success. To qualify as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress. (Mixpanel)
North Star Metric is the value your customer gets int return for the price they pay.
Avoid using Revenue as your NSM, it is a consequence.
Your entire company has the same focus. At the team level, you still focus on a different number, but ultimately everyone has the same goal. (Ward van Gasteren - Growth Hacking Expert)
Keep in mind that North Star Metic is an Output Metric and be achieved there are a lot of Input Metrics behind it.
Also do not confuse North Star Metric (NSM) for One Metric That Matters (OMTM). OMTM makes much more sense whe applied to a team as a focus in a given period of time (short-term). It should be connected somehow to the North Star to contribute to achieving it in the long-term.
Some examples:
| Company | North Star Metric |
|---|---|
| Medium | Total reading time users spend in a week/month |
| Netflix | Time spent by subscribers streaming content |
| Airbnb | Number of nights booked |
| Slack | Number of messages sent |
| Spotify | Time spent listening to music |
| Quora | Questions Answered |
| Lyft | Rider per week |
References
Recommended Books
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Lean Analytics - by Alistair Croll, Benjamin Yoskovitz Use Data to Build a Better Startup Faster 
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Measure What Matters - by John Doerr How Google, Bono, and the Gates Foundation Rock the World with OKRs
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