Glossary

North Star Metric

A North Star Metric is the single measurement that best captures the value a company delivers to its customers. It gives everyone in the business one shared goal to work towards, rather than a scatter of separate targets or vanity metrics.

A good North Star Metric is easy to understand, tied to customer value, and something the team can actually influence through their work. Here are some examples from well-known companies:

  • Airbnb: nights booked
  • Spotify: time spent listening
  • WhatsApp: messages sent
  • Fitbit: steps taken

See also: Vanity metrics

Read more: How You Can Use SMART KPIs