Strategy
North Star Metric
This exercise helps teams define a single, key success metric that reflects customer value. We'll brainstorm metrics, map them to customer value, and identify leading indicators. The goal? Selecting a North Star Metric to guide product decisions.
Duration
45 mins
Group Size
4-8
Category
Strategy
Difficulty
Easy
Participants will identify the metric that best captures customer value. The team will align on the definition of success. The exercise focuses product development and establishes leading indicators to track progress.
- Defined North Star Metric.
- Clear success measure.
- Focused optimization efforts.
The North Star Metric must reflect customer value, not just business goals. Revenue alone is usually not a good North Star Metric, as it's a lagging indicator. Good examples: Airbnb = nights booked, Facebook = daily active users, Spotify = time spent listening. Avoid "franken-metrics" that combine too many things. The team should be able to explain the North Star Metric in 30 seconds. Supporting metrics break down how to improve the North Star Metric. Some debate is healthy, as it indicates engagement. Once selected, use the North Star Metric to ruthlessly prioritize features. Revisit if the product strategy shifts significantly. Sometimes, teams struggle to narrow down the options; in these cases, try dot-voting after the discussion.
Start the conversation
Be the first to share your thoughts, experiences, or questions!