I have been thinking a lot about aligning product teams with product strategy. Here’s a post about one tool in the alignment arsenal. The North Star.

What’s a North Star Metric Anyway?

A North Star Metric (NSM) is the one metric that matters most. It represents the core value your product delivers to users and serves as your guiding light for long-term success. It keeps your team aligned, focused, and moving in the right direction. Simple as that.

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Why Bother With a North Star Metric?

Having a North Star Metric means you’re not chasing random numbers that look good but don’t really matter. Here’s why it’s a game-changer:

1. Keep Your Eye on the Prize

Forget vanity metrics. Your NSM ensures you’re tracking what really moves the needle for users and the business.

2. Get Everyone on the Same Page

From product to marketing to ops, everyone should be rowing in the same direction. A solid NSM helps teams sync up.

3. Build for the Long Haul

Short-term wins are great, but sustainable growth is the goal. A good NSM makes sure you’re scaling in the right way.

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How to Pick a North Star Metric That Works

A great NSM should be simple, actionable, and tied to real business outcomes. Here’s how you figure it out:

1. Understand Your Core Value

Ask yourself: What’s the main reason people use our product? Your NSM should reflect the value users get from it.

2. Connect It to Growth

If your NSM improves but your business isn’t growing, you’ve got the wrong metric. Pick something that’s directly tied to success.

3. Make It Measurable

If you can’t track it, you can’t improve it. Your NSM should be easy to monitor and analyze.

4. Don’t Ignore Other Metrics

A North Star Metric is important, but it’s not the only thing you should track. Pair it with other KPIs for a complete picture.

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Real-World North Star Metrics

Some of the biggest companies out there rely on their North Star Metrics to guide growth:

• Airbnb → Nights booked (measures marketplace health and user value)
• Spotify → Minutes streamed (tracks engagement and content value)
• Slack → Messages sent per user (measures engagement and product dependency)

Each of these metrics is directly linked to user experience and business success. They’re not just numbers—they tell the story of product value.

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Picking the Wrong North Star Metric? Here’s What Happens

Messing up your NSM can lead to some bad decisions. Avoid these common pitfalls:

1. Chasing Vanity Metrics

Page views, downloads, or social media followers might look great, but they don’t necessarily mean you’re delivering value.

2. Making It Too Complex

If it takes a whole team just to calculate your NSM, it’s too complicated. Keep it simple.

3. Ignoring User Experience

A metric focused purely on revenue might drive bad decisions—like aggressive upselling—that hurt user trust.

4. Choosing a Short-Term Fix

A good NSM isn’t about short-term wins. It should reflect the bigger picture and long-term success.

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How to Use a North Star Metric to Actually Get Results

Having an NSM is one thing. Making it work for you is another. Here’s how to put it to good use:

1. Let It Guide Your Decisions

Use your NSM to prioritize product updates, marketing campaigns, and operational strategies.

2. Track It Like a Hawk

Measure your NSM over time to understand trends and make data-driven decisions.

3. Keep Everyone in the Loop

Make sure the whole company knows what the NSM is and why it matters.

4. Be Willing to Adapt

If your NSM isn’t driving the right behaviors, change it. Business evolves, and so should your metric.

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Wrapping Up

A well-chosen North Star Metric keeps teams focused, drives meaningful growth, and ensures your product delivers real value. But remember, it’s not set in stone.

Bottom Line

As a team, stay focused; Stay aligned; Keep moving towards success. Your North Star Metric is your roadmap, make sure it’s taking you where you actually want to go.

Don’t have an NSM, let’s talk about setting one.