What is a North Star Metric

Definition

A North Star Metric is the single number a business watches because it counts the value customers actually get, not what the business takes from them. In Amplitude's North Star Framework the metric sits with a few input metrics, typically three to five, that most directly move it and that the team can act on. The term is usually credited to Sean Ellis and the growth community. Amplitude notes that Airbnb's North Star is widely cited as nights booked. For a small business it can be simple: clients who booked their next visit before leaving.

Why it matters

Revenue alone can rise for a while from price increases or one off sales while customers get less, and a follower count can rise while nobody books. A metric built on what customers confirm, such as a booked next visit, shows the value that later turns into revenue. Its inputs turn it into daily work: answer enquiries faster, keep more first visits, offer the next visit at the desk.

Directly related: KPI, Vanity metrics, Retention.

Improvement tips

• Pick the number that counts value the customer confirms, such as visits booked, rather than accounts, followers or revenue.
• Name three to five input metrics that move it and that someone on your team can act on this week.
• Review the choice once customers arrive in numbers, and change it if it stops tracking what they value.

Common mistakes

• Choosing a number nobody can move through their own work, so it becomes a report instead of a guide.
• Watching several "north stars" at once, so no decision has one clear test.