What is the scale of the North Star? (+8 Steps to Discover Your NSM)

What Is the North Star Metric?

The North Star Metric (NSM) is the single metric that best captures the core value your company delivers to customers.

It acts as a compass. When this number grows, your business grows.

For example:

Spotify focuses on time spent listening.

Airbnb tracks nights booked.

Facebook uses Monthly Active Users (MAU).

Each of these metrics reflects real engagement and value — not just surface-level numbers.

The idea is simple:

If customers experience more value, they stay longer, buy more, and refer others.

Why Revenue Is a Weak North Star Metric

Revenue tells you how much customers pay.

The North Star Metric tells you how much value they receive.

If you optimize only for revenue, you may unintentionally prioritize short-term gains over long-term relationships.

Strong companies understand that revenue is the result of delivering value consistently — not the other way around.

North Star Metric vs. OMTM (One Metric That Matters)

It’s common to confuse the North Star Metric with the One Metric That Matters (OMTM), but they serve different purposes.

North Star Metric

Long-term focus (years)

Used by the entire company

Rarely changes

Represents core customer value

OMTM

Short-term focus (2–6 months)

Used by a specific team

Changes frequently

Supports improvement of the NSM

Think of the NSM as your destination.

The OMTM is the current step helping you get there.

How to Choose the Right North Star Metric (8-Step Checklist)

Selecting the wrong metric can lead to misaligned teams and misleading growth. Use this checklist to evaluate your choice:

1. It Reflects Customer Success

Your metric should connect directly to the moment customers achieve their desired outcome using your product.

2. It Measures Real Value

It must reflect what customers truly gain — not just internal performance or marketing activity.

3. It Is Measurable

Avoid vague concepts like “satisfaction.” Choose clear, trackable actions.

4. It Is Time-Based

Measure it daily, weekly, or monthly. Avoid lifetime cumulative totals.

5. It Is Mostly Within Your Control

External factors should not heavily distort it.

6. It Directly Reflects Growth

If this number increases, your business must also be growing.

7. It Impacts the Whole Company

Every department should be able to influence it in some way.

8. It Provides Frequent Feedback

You should be able to track progress regularly — ideally weekly or daily.

Real-World Examples of North Star Metrics

Here are additional examples from well-known companies:

Amazon → Monthly purchase frequency

LinkedIn → Monthly Active Users

Uber → Weekly rides

Slack → Daily Active Users

Quora → Questions answered

HubSpot → Weekly active teams

WhatsApp → Messages sent

Each example focuses on usage and engagement — clear signals of customer value.

Frequently Asked Questions

Can a company have more than one North Star Metric?

In most cases, no. A company should have one unifying metric.

The only exception is when the company offers fundamentally different products that deliver completely different types of value.

Does the North Star Metric change over time?

It should remain stable unless your company fundamentally changes its value proposition.

What Is a North Star Strategy?

A North Star Strategy means aligning all strategic decisions with improving the North Star Metric.

It ensures:

Clear direction

Team alignment

Sustainable long-term growth

Final Thoughts

The North Star Metric is not just another KPI.

It is a decision-making framework.

When chosen correctly, it:

Aligns teams

Clarifies priorities

Encourages customer-first thinking

Drives sustainable growth

If your company is serious about scaling in a healthy and predictable way, defining your North Star Metric is the best place to start.