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North Star Metric - Guide (with examples)

The north star metric is a metric that helps growth marketing teams measure and improve their progress.


There is no single silver bullet for successful marketing. However, if you want to achieve sustainable growth, growth hackers will establish a north star metric. This is a metric that you can use to measure your progress and ensure that all your marketing efforts are moving you closer to your ultimate goal. In this blog post, we'll discuss what a north star metric is and how you can use it to achieve growth in your business.

North Star Metric

What is North Star Metric?


In business, the north star metric is a measure of progress that is closely aligned with a company's mission and core values. It is used by growth hackers as a guide to make decisions and track progress towards achieving long-term goals. This should be something that is impactful and meaningful to the company, and it should be closely aligned with the company's strategy.


For example, if a company's mission is to provide outstanding customer service, then the north start metric could be the measure of customer satisfaction. Tracking the NSM can help companies stay focused on what is important, and it can help them make better decisions about where to allocate resources.


Why is North Star Metric important?


North Star Metric is a popular framework for measuring and tracking progress for growth marketing teams. The NSM helps teams to focus on a single metric that represents the key driver of growth for their business. This allows teams to track their progress towards their goal and identify areas where they need to improve. Also, provide a valuable way for team members to communicate their progress and success to others. By focusing on a north star metric, growth hacking teams can ensure that they are making progress towards their goals and driving real results for their business.


Qualities of a Good North Star Metric


There are a few qualities that make a good north star metric.


First, it should lead to revenue. This means that it should be closely tied to the company's bottom line and directly influence sales.


Second, it should accurately reflect customer value. This provides insights into what customers care about most and how they are engaging with the product. This, in turn, helps businesses make decisions that will improve the customer experience and drive business growth.


Third, it should be measurable. The metric should be something that can be tracked and quantified over time.


Finally, it should be understandable. The metric should be clear and easy to explain to the growth team.


North Star Metric vs KPI (Key Performance Indicators)


North Star Metric (NSM) and Key Performance Indicators (KPIs) are both important tools for measuring progress and determining success. However, they are not the same thing.


NSMs are higher-level goals that reflect the overall mission of a company or organization. In contrast, KPIs are specific, tangible measures that can be used to track progress towards a north star metric.


For example, if a company's NSM is to increase customer satisfaction, then a KPI might be the percentage of customers who say they are "very satisfied" with their experience. By tracking both NSMs and KPIs, companies can get a clear picture of their progress and identify areas where they need to continue to improve.


How do Growth Marketers determine the company's North Star Metric?


A company's north star metric reflects the company's overarching purpose and mission. It is a metric that should be regularly monitored and reported on, as it provides insights into the growth and direction of the business. There are several steps that businesses can take to determine their NSM.


First, businesses should start by defining their company's purpose. This can be done by drafting a mission statement that articulates the company's core values and principles.


Once the company's purpose has been established, it should be used to guide the development of goals and objectives. From there, measurable metrics should be selected that will track progress towards these goals.


Finally, businesses should choose one metric that embodies the company's purpose and mission, and focus on improving this metric over time. This NSM will provide valuable insights into the company's performance and help to ensure that it remains focused on its core mission.


How do growth marketers use the North Star Metric to achieve business goals?


North Star Metric can be used to measure and track the progress of your business goals. It provides a clear and concise way to communicate your goals to others, as well as to yourself. North Star Metric can be used to track any goal, whether it's financial, operational, or customer-related. The NSM is particularly useful for setting and achieving long-term goals. When used properly, it can help you stay on track and make progress towards your goals. North Star Metric can be an important tool for any business owner or manager who wants to achieve their business goals. By setting and tracking your north star metric, you can increase your chances of success.


What are some common pitfalls when using the North Star Metric for growth marketing teams?


There are a few pitfalls to avoid when using the north star metric for growth marketing teams.

Firstly, it can be easy to become fixated on one particular metric and lose sight of the bigger picture.

Secondly, if the metric is not aligned with the company's overall goals, it can actually do more harm than good.

Finally, if the metric is not regularly reviewed and updated, it can become outdated and ineffective.


By avoiding these pitfalls, growth marketing teams can make sure that the north star metric is a valuable tool for measuring and driving growth.

North Star Metric Examples


The north star metric is a metric that helps growth marketing teams measure and improve their progress. It has been used successfully by many companies and here are a few examples:

Airbnb’s North Star Metric


Airbnb is focused on its mission to make it easy for people to find a place to stay. The company uses nights booked as its north star metric because they believe that this metric is the best way to measure progress towards their mission. Airbnb has found that nights booked are a good proxy for other measures, such as customer satisfaction, brand awareness, and good leading indicator of future growth. Airbnb uses this data to inform its decision-making and to track progress towards its goals. The company is constantly experimenting with new ways to increase its north star metric, such as through product innovation and marketing initiatives. Airbnb's focus on nights booked has helped it become one of the most successful companies in the world.


Facebook’s North Star Metric


Facebook’s north star metric is Daily Active Users (DAUs). Facebook defines a DAU as a person who logs into Facebook and visits their News Feed each day. Facebook’s mission is to give people the power to share and make the world more open and connected. The company believes that DAUs are the best way to measure whether Facebook is achieving its mission. Facebook has consistently reported strong DAU growth, even as it faces challenges from other social media platforms.


Zoom’s North Star Metric


Zoom’s north star metric is the average weekly hosted meeting. This number represents Zoom’s growth as a company and how well it is doing. The Zoom team is constantly monitoring this number to make sure that it is growing. The company’s goal is to make sure that this number keeps increasing so that Zoom can keep its place as the leading video conferencing platform.


Slack’s North Star Metric


Slack’s north star metric is the number of messages sent. Slack believes that the more people use their product to communicate, the more value people will get from Slack. The number of messages sent is a good proxy for engagement and usage. Slack also looks at other measures such as active users, daily active users, weekly active users, retention, and satisfaction but ultimately the number of messages sent is Slack’s north star metric.


Hubspot’s North Star Metric


Hubspot’s north star metric is the number of weekly active teams. This metric is important because it allows Hubspot to track how many teams are using their platform on a weekly basis. Additionally, this metric helps Hubspot to identify which teams are the most active and engaged with their platform. This information is valuable because it allows Hubspot to focus its resources on the teams that are most likely to achieve success.


Shopify’s North Star Metric


Shopify’s north star metric is the number of active merchants. Shopify’s mission is to make eCommerce better for everyone, and they believe that by supporting entrepreneurs and helping them grow their businesses, they can create a positive impact on the world. Shopify is focused on building the best platform for entrepreneurs to sell their products, and they believe that their NSM is the best way to measure their progress towards their mission. In addition to the number of active Shopify merchants, Shopify also tracks the gross merchandise volume (GMV) of all Shopify merchants. GMV is the total value of all sales made through Shopify, and it is used to measure the overall growth of the Shopify ecosystem. While Shopify’s NSM is the number of active Shopify merchants, they believe that GMV is a good metric to track as well because it shows how much money is being spent through Shopify merchants.


Uber’s North Star Metric


Uber's north star metric is the number of rides taken per week. Uber uses this metric to track its progress and growth. The company's ultimate goal is to increase the number of Uber rides taken each week. To do this, Uber needs to continue to grow its customer base and encourage more people to use Uber on a regular basis. Uber also needs to ensure that its drivers are providing a good experience to riders so that riders will continue to use Uber and recommend it to others. By focusing on increasing the number of Uber rides taken each week, Uber can continue to grow its business and reach its ultimate goal.


FAQ on North Start Metric by Growth Hackers


Can growth hackers have more than one North Star metric?


North Star metrics is a key tool for driving growth and measuring success in startups and other fast-paced businesses. The north star metric is the one metric that best captures the core value that your company delivers to its customers. For most companies, there can only be one north star metric. However, there are some exceptions. For companies with multiple products or services, it may make sense to have separate north star metrics for each product or service. Additionally, companies that serve both B2C and B2B customers may also have separate NSM for each customer type. Ultimately, the decision of whether or not to have more than one north star metric depends on the specific business model and goals of the company.


Can a North Star Metric be a driving factor for your product strategy?


North star metrics is a key tool for driving product strategy. North Star metrics are the one metric that best captures the core value that your product delivers to users. North star metrics can be used to inform product decisions, such as what features to build or how to prioritize initiatives. NSM can also be used to track progress over time and identify areas of improvement. When setting north star metrics, it is important to involve stakeholders from across the organization, including marketing, sales, customer success, and product. Once north star metrics have been set, they should be reviewed on a regular basis to ensure they are still aligned with business goals and provide meaningful insights.


How does North Star Metric differ from Object Key Result (OKR)?

North Star metrics and Object Key Results are both important measures of success for businesses, but they differ in a few key ways. North star metrics measure progress towards the overall mission or goals of a company, while Object key results are more specific measures that relate to individual objectives. North star metrics are typically longer-term measures, while Object key results are more short-term. North star metrics are also more abstract, while Object key results are more concrete. Despite these differences, North star metrics and Object key results both play an important role in assessing and driving business success.