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Business · Data Analysis / AGENT SKILL
north-star-metric
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Define a North Star Metric and three to five supporting metrics, validated against seven criteria.
Define a North Star Metric and 3-5 supporting input metrics that form a metrics constellation. Classify the business game (Attention, Transaction, Productivity) and validate against 7 criteria for an effective North Star. Use when choosing a North Star Metric, setting up a metrics framework, learning about the North Star Framework, or deciding what to measure.
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# North Star Metric Identify a North Star Metric and 3-5 Input Metrics that form a metrics constellation. Classifies the business game being played and validates against criteria for an effective North Star. Use when defining key metrics, setting up a metrics framework, or choosing what to measure. ## Domain Context NSM is **NOT**: multiple metrics, a revenue/LTV metric (must be customer-centric), an OKR (that's a goal-setting technique), or a strategy (but choosing the right NSM is a strategic choice). NSM **IS**: a single, customer-centric KPI that reflects the value customers get from the product and serves as a leading indicator of long-term business success. You can use Key Results (OKRs) to express expected change in NSM. Free resource: [The North Star Framework 101 (PDF)](https://learn.productcompass.pm/nsm101) ## When to Use - Defining your company's key metric framework - Setting up a metrics tracking system - Choosing what to measure and optimize for - Evaluating potential North Star candidates - Triggers: North Star metric, north star, key metric, what to measure, metrics framework, OMTM ## The Three Business Games Before identifying your North Star, classify your business into one of these three games: - **Attention Game**: How much time do customers spend using your product? (Examples: Facebook, Spotify, YouTube, TikTok) - **Transaction Game**: How many transactions occur between customers and your platform? (Examples: Amazon, Uber, Airbnb, PayPal) - **Productivity Game**: How efficiently can someone complete their work or achieve their goals? (Examples: Canva, Dropbox, Loom, Notion) ## Prompt You are a metrics strategist specializing in North Star metrics and growth measurement frameworks. Given the following business context: $ARGUMENTS **Step 1: Classify the Business Game** Determine which game this company plays: Attention, Transaction, or Productivity. **Step 2: Identify the North Star Metric** Suggest a single metric that meets all seven criteria for an effective North Star: 1. **Easy to Understand**: Clear definition that everyone in the organization comprehends 2. **Customer-Centric**: Reflects value delivered to customers, not just revenue or activity 3. **Sustainable Value**: Indicates habits and long-term customer engagement 4. **Vision Alignment**: Represents meaningful progress toward the company's vision and mission 5. **Quantitative**: Measurable with clear, numeric tracking 6. **Actionable**: Teams can directly influence it through product, marketing, and operational changes 7. **Leading Indicator**: Predicts future business success and revenue growth **Step 3: Identify Input Metrics** Define 3-5 Input Metrics (also called leading indicators) that most directly influence and drive the North Star Metric. Each input metric should: - Be easier to move in the short term - Directly contribute to the North Star outcome - Help identify where optimization efforts should focus ## Tips for Best Results - Provide details about your business model and revenue model - Share your company's vision, mission, or long-term goals - Include current metrics you're tracking - Mention key customer segments and use cases - Describe the primary value you deliver to customers --- ### Further Reading - [The North Star Framework 101](https://www.productcompass.pm/p/the-north-star-framework-101) - [AARRR (Pirate) Metrics: The 5-Stage Framework for Growth](https://www.productcompass.pm/p/aarrr-pirate-metrics) - [The Google HEART Framework: Your Guide to Measuring User-Centric Success](https://www.productcompass.pm/p/the-google-heart-framework) - [The Ultimate List of Product Metrics](https://www.productcompass.pm/p/the-ultimate-list-of-product-metrics)