Guide To Select Your North Star Metric

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Guide To Select Your North Star Metric
26 Nov 2021
5 min read

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A north star metric is a vital indicator of a company's product team's success. It establishes the link between the customer issues that the product team is attempting to resolve. Revenue isn't a North Star metric, however. So, are you interested in learning how to make your own North Star Metric? Yes? You've come to the ideal location to learn! #ThinkWithNiche

How Does North Star Metric Work?

A North Star measure is partitioned into more modest pointers that drive individual responsibility and possession. A significant number of these sub-measurements are group explicit and noteworthy, permitting individual supporters to see an immediate connection between their everyday obligations and the North Star. Organizations ought to be comparatively allowed to analyze and change their NSMs to guarantee that they are, as yet, pointing the correct way.

Difference Between NSM And OMTM

The North Star Metric (NSM) is the figure on which your entire firm is focused to achieve long-term growth over an indefinite length of time. It's meant to be long-term guidance. One Metric That Matters (OMTM) is the number on which one team concentrates for a period of 2 to 6 months to achieve rapid growth. The acronym OMTM stands for "one metric that matters right now" and is a leadership strategy for resolving a short-term issue.

How To Select Your Metric?

To determine your North Star metric, you must first determine what is genuinely critical to the company.

  • Decide On A Core Metric For Your Business.

Every product has a metric that is referred to as the Core Metric. This is the single measure that identifies the basic functionality of your product. This primary measure should define the occurrence that occurs when your company fulfills its promise.

  • Define Onboarded

The first time a user encounters your key metric, or the promise of your business, is referred to as "onboarding." This User Onboarding process is critical to the success of your product, which is why defining what "Onboarded" means as a team becomes critical. Then, your core measure becomes an ongoing metric, and you must figure out how many times it must be completed to demonstrate better engagement and begin to enhance retention.

  • Look For Common Conversion Activities

The acts that characterize the behavior of accounts that cause users to return to your product or become sticky, and have a medium to high positive influence on retention, are known as Common Conversion Activities.

  • Find Out What Your North Star Metric is

With the information above, we can now decide on a data-backed measure that will ensure improved retention and, as a result, assist the firm to expand in all aspects, such as enhanced LTV (Customer Lifetime Value), lower churn, and the capacity to generate more expansion income, among other things.

  • Checklist Of A Good North Star Metric

If done correctly, your North Star Metric should be near to the point at which the consumer receives the desired outcome from your product/service/software. That is the moment when someone on Instagram feels heard.

Not only do you keep a watch on your marketing KPIs, but you also keep an eye on all of your different Pirate Metrics/AARRR, such as retention and referral, with a decent NSM.

Your North Star Metric is constrained by time. An excellent North Star Metric is based on a certain period, such as an hour, day, week, or month. You want to be able to see how much you've progressed over time.

Your North Star metric should result in actual expansion. Something isn't quite right if your North Star statistic is improving over time, yet your income isn't. You've probably picked something unrelated to your real development.

It quantifies the point at which a consumer recognizes the value of your product. It is the foundation of your existing product strategy. Your NSM should be a leading (rather than a lagging) indicator of a future business result that matters to your firm.


While the North Star metric may be extremely beneficial to any business, don't be disheartened if you can't get it set up soon. It necessitates an in-depth understanding of your target market and product, as well as how your consumers engage with it. Your understanding of your client journey will improve as your product matures, and you'll be able to create a better, more useful North Star metric.


TWN In-Focus