North Star Metric Examples

North Star Metric Examples

What does North Star Metric mean?

North Star Metric (NSM) should be treated as the most important measurement for the long-term success of your business and as a focus for growth. Your North Star Metric should reflect the value that your business delivers to your customers. Your entire company should experience growth when you deliver value to your customers. The more value that your customers receive, the longer they will stay loyal, and even become brand ambassadors who refer more business.

For your team, your NSM will be their guiding metric. All their work and efforts will be focused on the common goal, ensuring that your entire team is aligned to this single metric.

What is a North Star Metric?

Here are some popular North Star Metrics for popular industries.

North Star Metrics for eCommerce Businesses

  • Number of Purchases Per Month
  • Number of Repeat Purchases Per Month
  • Number of Returning Customers Per Month
  • Customer Order Value (COV)
  • Customer Lifetime Value (CLV)

North Star Metrics for SAAS Companies

  • Number of Free Subscribers Per Month
  • Number of Paying Subscribers Per Month
  • Number of Interactions by Subscribers
  • Subscriber Retention Rate

Other Widely Used North Star Metrics

  • Daily Active Users (DAUs)
  • Monthly Active Users (MAUs)
  • Average Revenue Per User (ARPU)
  • Number of Actions Taken Per Customer
  • Hours Engaged Per Day

How do you choose your North Star Metric?

Explore and figure out, which metric, if your team works together to increase, would deliver more value to your customers. By increasing this metric, you will get your business flywheel to spin faster – growth and revenue will follow.

Examples of North Star Metrics

BrandNorth Star Metric
NetflixTime spent watching content per month
FacebookDaily active users (DAU)
SpotifyMonthly active users (MAU)
AirbnbNumber of nights booked
SlackNumber of paid teams
MiroNumber of collaborative boards
TypeformAnnual Recurring Revenue (ARR)
UberNumber of rides taken
DropboxNumber of files stored
LinkedInNumber of professional connections
ZoomNumber of meeting minutes
AmplitudeWeekly Learning Users (WLUs)

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