Glossary · StrategyTOFU
North star metric
The short answer
A north star metric is the single measure that best captures the core value customers get from your product and, because of that, best predicts long-term growth.
It aligns teams: marketing, product and sales all work to move the same number.
Examples
- Food delivery — orders delivered per week
- Subscription D2C — active subscribers
- B2B SaaS — weekly active teams using the core feature
- Marketplace — successful transactions
- Content platform — engaged reading or viewing time
A good north star
- Reflects value delivered to customers
- Leads to revenue
- Is measurable frequently
- Can be influenced by teams
- Is hard to game
In practice
The north star should be reported weekly next to the marketing scorecard, so channel teams can see whether their work is moving the number the business cares about. If a campaign increases sign-ups but not the north star, it hasn't really worked.
North-star examples
| Business | North-star metric |
|---|---|
| D2C subscription | Active subscribers retained for 3+ months |
| Fintech app | Monthly transacting users |
| SaaS | Weekly active teams completing key workflow |
| Marketplace | Successful transactions per month |
| Edtech | Learners completing lessons weekly |
North-star metrics in practice
A food-delivery app picks weekly orders per active customer as its north star; marketing, product and operations all work to grow it.
Choosing a north star
- Reflects customer value
- Leads to revenue
- Can be influenced by teams
Common mistakes
- Choosing revenue alone
- Too many north stars
- Metrics teams can't influence
Frequently asked questions
Should revenue be the north star?
Revenue is an outcome. A good north star is usually the customer behaviour that drives revenue.
Can a business have more than one north star?
It can have supporting metrics, but one north star keeps teams aligned. If you need several, they usually belong underneath a single top-level measure.
How often should the north star change?
Rarely — only when the business model or strategy changes significantly.
Can a company have more than one north star?
Usually one, supported by input metrics that teams own.
Can a north-star metric change?
Yes — as the business evolves, the metric that best reflects value may change.
Related terms
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