Running any business can be a complex ecosystem of many moving parts. Making them all work together in unison can seem more frustrating than the daily life of Sisyphus, but finding the useful takeaways and giving them structure is the key to success. That structure is rarely as simple as a single number defining direction or executive decision. However, actually having an overarching metric that gives direction and aligns all the other metrics together can be infinitely useful.
Your company has a defined mission to meet a need and a unique value proposition to meet that need better than anyone else (at least you should). The North Star metric gives you a direction that is in line with the value you offer to your customers. That direction is the single largest driver of sustainable long-term growth -- and is inevitably linked to your customers’ engagement with your product. The key steps of that engagement help your team build your growth model.
Defining The North Star Metric
The North Star metric concept originally emerged from Silicon Valley, and is best utilized by companies that invest in long-term sustainable growth. It focuses on the product and the core value it delivers to customers. The value your customers receive from your product is measured by key steps in the consumer lifecycle. Very often (especially in technology and SaaS companies), the North Star is related to the acquisition of new users and the engagement of existing users.