Finding your North Star Metric

Lenny Rachitsky

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Finding your North Star Metric

Broadly, there are six categories of North Star Metrics:

  1. Revenue (e.g. ARR, GMV):
  2. The amount of money being generated — the focus of ~50% of companies.
  3. Customer growth (e.g. paid users, marketshare):
  4. The number of users who are paying — the focus of ~35% of companies.
  5. Consumption growth (e.g. messages sent, nights booked):
  6. The intensity of usage of your product, beyond simply visiting your site — the focus of ~30% of companies.
  7. Engagement growth (e.g. MAU, DAU)
  8. The number of users who are simply active in your product — the focus of ~30% of companies.
  9. Growth efficiency (e.g. LTV/CAC, margins)
  10. The efficiency at which you spend vs. make money — the focus of ~10% of companies.
  11. User experience (e.g. NPS)
  12. The measure of how enjoyable and easy to use customers find the product experience, overall — the focus of ~10% of companies.


So what are the optimal North Star Metric(s) for startups? I surveyed current and past employees at over 40 of today’s most successful growth-stage companies to compile the table below; the findings provide a helpful framework for organizations seeking their own guiding metrics. [See original article for breakdown]

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