Product

North Star Metric

The single metric that best captures the value a product delivers.

A north star metric is the one number that best represents the core value a product delivers to users — and that, when it grows, the business grows with it. It aligns teams around outcomes rather than vanity metrics.

Choosing the right north star (e.g. weekly active teams, nights booked) focuses design and product decisions on genuine value, not just signups.

Key characteristics

  • The single metric that best captures the core value a product delivers to users.
  • Aligns the whole company around one number that predicts long-term growth.
  • Should reflect customer value, not vanity (e.g. "nights booked", not "page views").
  • Supported by a set of input metrics teams can directly influence.

Example

Airbnb's classic north star is "nights booked" — it ties directly to value for guests and hosts and to revenue, so teams optimise inputs that move it.

Frequently asked questions

What makes a good north star metric?

It captures delivered customer value, correlates with revenue and retention, is measurable, and is something teams can actually influence through their work.

Can a company have more than one north star?

The point is focus, so most pick one top-level metric. Different teams then own input metrics that feed it, keeping everyone aligned without diluting the headline goal.

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