north-star-metric

# 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) - **...