What’s a North Star Metric in Product Management & Why You need one!

I have been learning more and more about product management lately.. usually during my free time on weekdays or on weekends.. I love reading about how people decide the road maps of their company’s products or “components” of a product..

What is a North Star Metric (Picture Credits: Amplitude)

Last week I came across this term called “North Star”.. and honestly.. I was confused.. I had been working like Analyst from quite a while now and I have never heard about it! woah! So.. I did the whole research over internet and have compiled my findings in this story.. so you don't have to :P

So lets get started..

What is North Star Metric?

The North Star Metric or we can say NSM is a metric that any company uses as a focus for their growth. This number best reflects the amount of value that your company brings to your customers.

A metric to be qualified as a “North Star,” a metric must do three things: lead to revenue, reflect customer value, and measure progress.

Types of North Star Metric

Broadly, there are six categories of North Star Metrics:

1. Revenue :
   The amount of money being generated — the focus of ~50% of companies.
2. Customer growth (e.g. paid…