What is the North Star?
- One measurable indicator that’s able to stand for a product’s long-term growth
- Most important and representing metric
- Not related directly to money
- Gives value for the company (hence, growing revenue and profit)
- Gives value for the customer
- Should be the most common denominator that is good for both the customer and the company and expresses fulfilling the product’s vision
What is the importance of the North Star?
- Alignment: The right North Star metric gives the entire company a singular focus
- Focus on Impact: It helps teams prioritize customer experience, which leads to improved acquisition and retention
- Prioritization: It tells you which activities, features, experiences, etc. matter most, and which don’t
- Transparency: It makes it clear at a glance how the company is doing
- Accountability: It enables teams to be held properly accountable for the outcomes they achieve