North Star Metric
The single metric that best captures the core value a company delivers to customers.
Definition
A north star metric is the one number that a company rallies around because it best reflects customer value and predicts long-term growth. For Airbnb it is nights booked; for Slack it is messages sent. It aligns the entire company, from engineering to sales, around a shared definition of success.
Why it matters
Knowing your company's north star metric helps you understand what leadership considers most important. Teams that move the north star metric tend to get more resources, headcount, and equity refresh grants.
Example
A fintech company picks 'monthly active transacting users' as its north star. The product team is measured on features that increase transactions, not just sign-ups. Growth from 50K to 200K monthly transactors drives the Series B.