North Star Metric
A North Star Metric (NSM) is the single, primary metric a company uses to measure the core value it delivers to customers — and by extension, predict long-term business health and growth.
In depth
The concept, popularized by Sean Ellis (who coined 'growth hacking'), argues that optimizing for the right metric aligns every team around genuine user value — not just revenue. Revenue metrics (like MRR) are outcomes of value delivered; the North Star Metric measures the value itself.
Good North Star Metrics are: measurable, leading indicators of revenue, reflective of core user value, and something the whole team can influence.
Examples: - Spotify: Time Listened - Airbnb: Nights Booked - Facebook: Daily Active Users - Slack: Messages Sent - HubSpot: Contacts Managed - Duolingo: Daily Active Learners - Notion: Blocks Created
Anti-patterns: vanity metrics (total signups, page views) that don't reflect real engagement or value delivery.
Real example
A food delivery app chooses 'Successful Deliveries Per Week' as its NSM. This captures user value (food arrives on time), business health (restaurants and users are transacting), and is actionable — every team (logistics, UX, ops) has a clear impact path.
Tools & calculators
Related terms
MRR (Monthly Recurring Revenue)
Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue generated from all active subscriptions. It's the north star metric for SaaS companies.
Product-Market Fit (PMF)
Product-market fit (PMF) is the degree to which a product satisfies a strong market demand — the state where your product is so valuable that users naturally recommend it and return to it.
DAU / WAU / MAU (Active Users)
DAU (Daily Active Users), WAU (Weekly Active Users), and MAU (Monthly Active Users) measure how many unique users performed a meaningful action in your product within the given time period.
Product-Market Fit (PMF)
Product-Market Fit (PMF) is the degree to which a product satisfies a strong, existing market demand — evidenced by users who actively seek it out, return to it, and recommend it to others without being asked.
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