Product & metrics
North Star Metric
By Rubén García · 3 min
A single metric reflecting the value customers get and predicting future revenue.
A framework popularized by Amplitude. Examples: completed bookings (Airbnb) or projects created, never vanity metrics like visits.
A good North Star meets three conditions: it measures the value customers get, reflects product strategy and is a leading indicator of revenue.
It comes with input metrics teams can move day to day, like activation or usage frequency, so each team knows how it contributes to the shared goal.
The common mistake is picking revenue or visits: revenue lags and visits don't guarantee customers get value.
