North Star metric
The North Star metric is a single KPI that directly reflects the core value a product delivers to its customers.
A north star metric (NSM) is not just a number; it's the strategic compass for a company's product team. It's the direct link between the customer problems the product team is asked to solve and the revenue the business intends to achieve.
For example, a potential North Star Metric for Spotify could be "Time Spent Listening." This metric reflects user engagement with the platform, which can drive revenue through subscriptions and advertisements.
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