You’re building a product. Exciting, right? But how do you know if it’s working? How do you know if users love it? Or if you’re wasting time on features no one uses?
This is where product metrics come in. They are your compass. They show direction. But here’s the thing — not every metric is helpful. Some can even mislead you. That’s why you need a solid, honest, no-nonsense metric. You need a North Star that works.
What’s a North Star Metric?
A North Star Metric is the one number that tells you if your product is really delivering value. It helps your team focus on what matters most. Instead of chasing dozens of stats, everyone can rally behind one clear goal.
Let’s break down what makes a great North Star Metric:
- Reflects core value: It shows the real value users are getting from your product.
- Drives growth: It naturally leads to user growth and business success.
- Accessible and clear: Everyone on your team should understand it.
Sound simple? It’s not always. Many teams pick the wrong North Star. Let’s look at some common pitfalls.
North Star Metrics That Mislead
Here are some examples of bad North Star Metrics. These may look good at first glance, but they can send you in the wrong direction.
Total Signups
“Look! We’ve got 100,000 users!”
Sure. But are they active? Do they care? Total signups are a vanity metric. They tell you nothing about engagement or value.
Page Views
Who doesn’t love big numbers?
But page views could mean confusion. Maybe users keep refreshing the page because they can’t find what they need. More views doesn’t always mean more love.
Number of Features Launched
“We shipped 12 new features this quarter!”
But did those features move the needle? Launching things is fun, but your North Star should focus on impact, not activity.
Great North Star Metrics (That Don’t Lie)
Let’s talk about North Stars that actually work. Ones that reflect true user value. Here are a few examples by type of product:
1. Social App: Daily Active Users
If you’re building a social network, you want people coming back. A good metric might be:
- Daily Active Users posting or reacting.
This shows that users find it worth their time. They’re not just lurking — they’re engaging.
2. E-Commerce Site: Purchases Per Active User
Instead of tracking traffic, track behavior that brings value. A great metric might be:
- Average purchases per weekly active user.
This measures intent, interest, and trust, all in one go.
3. SaaS Tool: Time to First Value
New users ditch slow tools. Focus on a North Star like:
- Percent of users completing a key task within 10 minutes.
This helps you see if people ‘get it’ fast. If they don’t, maybe your onboarding needs work.
4. Streaming Platform: Minutes Watched Per User
A user watching more means they’re enjoying your content. This can be your North Star:
- Minutes watched per weekly user.
Way better than just counting app downloads.
How to Choose Your North Star Metric
Choosing the right North Star isn’t easy. But here’s a process to guide you.
- Understand your user’s “Aha!” moment.
- Map the journey to that moment.
- Look for the action that represents value delivered.
- Test and refine over time.
Take Slack, for example. Their North Star wasn’t signups. It was when a team sends a certain number of messages. That showed engagement and value — a good sign the team would stick around.
Tips to Avoid North Star Pitfalls
Even with a good metric, you can still fall into traps. Keep these in mind:
Don’t Overcomplicate
Your North Star should be one number. Not three. Not a formula. One number that matters.
Don’t Let It Drift
If your metric changes every quarter, your team won’t trust it. Stick to one and give it time to work.
Don’t Ignore Context
Your North Star is powerful, but it’s not the full picture. Pair it with supporting metrics. Think of them as guardrails.
Examples from the Wild
Still unsure? Here are some real companies and what metrics they used successfully:
- Airbnb: Number of nights booked. Shows people are finding and using the platform to travel.
- Spotify: Minutes listened. Proves engagement with music — their core value.
- Facebook: Monthly active users. Demonstrates social stickiness with real connections.
In each case, the metric tracks value to the user first. Revenue and growth follow naturally.
What If You Pick the Wrong Metric?
Don’t stress. You can fix it. Here’s what you do:
- Stop and reflect: Is your metric driving the right behavior?
- Talk to users: Are they feeling the value you’re claiming?
- Test alternatives: Try tracking different core actions and see what correlates with retention and satisfaction.
The key is to always focus on user value. Products that serve users well will win in the long run.
Wrap-Up: Make Your Metric Shine
Your North Star Metric isn’t just a number. It’s your team’s purpose expressed simply. It gives clarity. Direction. Motivation.
Choose with care. Make sure it reflects real value. Then track it like your product’s life depends on it — because sometimes, it does.
And remember:
- Don’t chase vanity.
- Stick to value.
- Let your North Star light the way.
Now go build something amazing. 🌟
