The North Star Metric (NSM) helps a company identify the single key metric that best captures the core value it delivers to customers while simultaneously driving long-term growth.<\/p>\n\n
It’s not about picking a vanity metric for a report. It’s about finding the compass that guides decisions across product, marketing, sales, customer support, and management.<\/p>\n\n
In this article, we will explore what a North Star Metric is, why it’s important, how it differs from a KPI, how to define it, and how to combine it with email marketing to drive a more focused strategy.<\/p>\n\n
<\/p>\n\n
What is a North Star Metric?<\/strong><\/h2>\n\nA North Star Metric<\/strong> is the primary metric that best represents the value a company provides to its customers and serves as a guiding light for sustainable growth.<\/p>\n\nSimply put: it’s the metric that tells you if your business is moving in the right direction.<\/p>\n\n
The concept comes from Polaris, which has been used for centuries as a navigational reference. In a business, the North Star works similarly: it ensures all teams know exactly which direction to row.<\/p>\n\n
A strong North Star Metric doesn’t just measure activity. It measures value.<\/p>\n\n
For example, a learning app shouldn’t focus solely on registered users. That metric can grow even if users learn nothing. It would be much more valuable to measure completed lessons, active learning time, or users who maintain a weekly routine.<\/p>\n\n
This difference is crucial.<\/p>\n\n
A metric like “new sign-ups” might indicate successful acquisition. However, a North Star should reflect whether users are receiving actual value from the product or service.<\/p>\n\n
Therefore, a good NSM usually meets three conditions:<\/p>\n\n
\n- It is tied to the value the customer receives.<\/li>\n\n\n\n
- It is directly linked to business growth.<\/li>\n\n\n\n
- It can be tracked consistently and is actionable.<\/li>\n<\/ul>\n\n
If a metric grows but fails to improve the customer experience or drive the business forward, it’s likely not a good North Star.<\/p>\n\n![\"\"](\"https:\/\/mailrelay.com\/wp-content\/uploads\/2018\/03\/mision-vision-y-valores-de-una-empresa.png\")
<\/figure>\n\nWhy is it important to have an NSM in your company?<\/strong><\/h2>\n\nHaving an NSM is essential because it cuts through the noise.<\/p>\n\n
In any company, each department typically has its own metrics. Marketing looks at leads. Sales looks at closed deals. Product looks at usage. Customer support looks at satisfaction. Management looks at revenue.<\/p>\n\n
All these metrics are useful, but without a shared goal, teams can easily pull in different directions.<\/p>\n\n
The North Star Metric serves to align everyone.<\/p>\n\n
This doesn’t mean the marketing team stops tracking campaigns or sales stops tracking opportunities. It simply means that all these secondary metrics must ultimately contribute to one overarching goal.<\/p>\n\n
For instance, if a SaaS platform’s NSM is “active users who complete a key action weekly”, marketing must attract high-potential users, product must streamline that action, customer support must resolve blockers, and sales needs to close accounts that fit this behavioral profile.<\/p>\n\n
An NSM also drives better decision-making. Whenever there are doubts about what to prioritize, you can ask yourself: “Does this help move our North Star?”.<\/p>\n\n
If the answer is no, it’s probably not that important.<\/p>\n\n
Its main benefits are:<\/p>\n\n
\n- Alignment:<\/strong> All teams work toward the same goal.<\/li>\n\n\n\n
- Focus:<\/strong> It prevents chasing too many metrics simultaneously.<\/li>\n\n\n\n
- Sustainable growth:<\/strong> The company measures real value, not just short-term spikes.<\/li>\n\n\n\n
- Better decision-making:<\/strong> It helps prioritize projects, campaigns, and resources effectively.<\/li>\n\n\n\n
- Customer-centricity:<\/strong> It forces you to focus on the actual value the user receives.<\/li>\n\n\n\n
- Transparency:<\/strong> The entire team understands exactly what growth means for the business.<\/li>\n<\/ul>\n\n
A strong North Star doesn’t replace strategy. It distills it into an easily understandable metric.<\/p>\n\n
<\/p>\n\n
What is the difference between a KPI and a North Star Metric?<\/strong><\/h2>\n\nA KPI and a North Star Metric are not the same thing, although both are used for measurement.<\/p>\n\n
A KPI<\/strong> (Key Performance Indicator) measures the result of a specific action, channel, team, or campaign.<\/p>\n\nFor example:<\/p>\n\n
\n- Email open rates.<\/li>\n\n\n\n
- Number of leads generated.<\/li>\n\n\n\n
- Conversion rate.<\/li>\n\n\n\n
- Customer Acquisition Cost (CAC).<\/li>\n\n\n\n
- Monthly sales.<\/li>\n\n\n\n
- Organic traffic.<\/li>\n\n\n\n
- Customer retention.<\/li>\n<\/ul>\n\n
All these data points are important, but they cannot all be the North Star.<\/p>\n\n
The North Star Metric<\/strong> is highly strategic. It represents the core value the company delivers to the customer and acts as a global guide for growth.<\/p>\n\nHere is the main difference:<\/p>\n\n
\n- A KPI measures a specific slice of performance.<\/li>\n\n\n\n
- A North Star Metric measures the overall direction of the business.<\/li>\n<\/ul>\n\n
For instance, in an email marketing campaign, the open rate is a KPI. Clicks are also a KPI. The conversions generated by that campaign are another KPI.<\/p>\n\n
But if your company is an online learning platform, your North Star might not be any of those metrics. It could be “number of students completing a valuable lesson each week”.<\/p>\n\n
KPIs help you understand if your tactics are working. The North Star helps you ensure the company is delivering value and growing healthily.<\/p>\n\n
Ideally, your KPIs should feed into your NSM.<\/p>\n\n
In other words, the metrics tracked by marketing, sales, product, and customer support should act as levers that help move the primary metric.<\/p>\n\n![\"\"](\"https:\/\/mailrelay.com\/wp-content\/uploads\/2025\/09\/email-marketing.jpg\")
<\/figure>\n\nOther articles that may interest you:<\/p>\n\n
\n- Customer letters: Types and how to write them effectively<\/a><\/li>\n\n\n\n
- Content Marketing Examples<\/a><\/li>\n\n\n\n
- Manychat: What it is and how to set it up with Instagram and WhatsApp<\/a><\/li>\n\n\n\n
- 360 Marketing: Campaigns, where to run them, how to create them, and examples<\/a><\/li>\n\n\n\n
- Internal Newsletters: Examples and how to create your own<\/a><\/li>\n<\/ul>\n\n
How to define your North Star Metric<\/strong><\/h2>\n\nDefining your North Star Metric<\/strong> requires more than just picking your favorite data point.<\/p>\n\nYour NSM must stem from one key question: What is the core value we deliver to our customers, and how can we measure it?<\/p>\n\n
From there, you can follow these steps.<\/p>\n\n
Identify the core value your customer receives<\/strong><\/h3>\n\nThe first step is understanding why your customers use your product or service.<\/p>\n\n
Don’t think about revenue, visits, or leads just yet. Think about value.<\/p>\n\n
What does your brand help the customer achieve? Do they save time? Sell more? Learn something? Get entertained? Manage their work better? Find a faster solution?<\/p>\n\n
For example, in a streaming platform, the value isn’t in signing up. It’s in watching content. In an email marketing tool, the value isn’t just in creating an account. It’s in sending campaigns that get delivered, opened, and generate results.<\/p>\n\n
Your North Star must be closely tied to that moment of value.<\/p>\n\n
Connect that value to business growth<\/strong><\/h3>\n\nA good North Star Metric should benefit the customer while also directly linking to company growth.<\/p>\n\n
If the metric improves, the business should improve too.<\/p>\n\n
For instance, if a SaaS tool measures “users who complete a key action every week”, that metric is highly likely tied to retention, satisfaction, and future renewals.<\/p>\n\n
In contrast, if it only tracks “registered users”, growth might look impressive on paper, even if most of those users never return.<\/p>\n\n
An NSM should protect against this kind of false positive.<\/p>\n\n
It shouldn’t be a vanity metric. It must be a metric that proves real value and growth potential.<\/p>\n\n
Analyze the customer journey<\/strong><\/h3>\n\nThe next step is to review the customer journey.<\/p>\n\n
From the moment a person discovers your brand until they become a loyal customer, there are several key milestones: acquisition, activation, usage, purchase, repeat purchase, referral, or renewal.<\/p>\n\n
Your North Star should be placed at the exact point where the customer experiences the core value.<\/p>\n\n
For example, in an ecommerce store, it could be the first completed purchase or the number of repeat customers. In a productivity app, it could be the number of completed tasks. In an educational platform, it could be the number of lessons finished.<\/p>\n\n
Not all businesses deliver value at the same stage. Therefore, no two North Star Metrics will be exactly alike.<\/p>\n\n
Choose a metric that is measurable and easy to understand<\/strong><\/h3>\n\nA North Star Metric must be crystal clear.<\/p>\n\n
If the team doesn’t understand it, it won’t align their decision-making.<\/p>\n\n
It needs to be explainable in a single sentence and measurable on a recurring basis. Furthermore, the data must be available frequently enough to take timely action.<\/p>\n\n
For example:<\/p>\n\n
\n- Active customers making a weekly purchase.<\/li>\n\n\n\n
- Users who complete a key action per month.<\/li>\n\n\n\n
- Hours of content consumed by active users.<\/li>\n\n\n\n
- Projects completed within the platform.<\/li>\n\n\n\n
- Sent campaigns with real engagement.<\/li>\n\n\n\n
- Lessons completed by active students.<\/li>\n<\/ul>\n\n
The important thing is that it is neither an abstract concept nor an untrackable metric.<\/p>\n\n
If you need three meetings just to explain what it means, it’s probably not a good North Star.<\/p>\n\n
Break down the NSM into secondary metrics<\/strong><\/h3>\n\nThe North Star doesn’t work alone.<\/p>\n\n
To improve it, you need to understand the secondary metrics driving it. These are often called input metrics.<\/p>\n\n
For instance, if your NSM is “customers who complete their first weekly purchase”, some secondary metrics might be:<\/p>\n\n
\n- Product page visits.<\/li>\n\n\n\n
- Add-to-cart events.<\/li>\n\n\n\n
- Completed checkout rate.<\/li>\n\n\n\n
- Abandoned cart recovery emails.<\/li>\n\n\n\n
- Website load time.<\/li>\n\n\n\n
- Clicks on promotional campaigns.<\/li>\n\n\n\n
- Repeat purchases from existing customers.<\/li>\n<\/ul>\n\n
These metrics give every team a clear idea of how they can contribute.<\/p>\n\n
Marketing can boost acquisition. Product can enhance the user experience. Sales can improve conversions. Customer support can remove friction.<\/p>\n\n
The NSM sets the course. Secondary metrics tell you how to get there.<\/p>\n\n
Assign ownership and review the metric frequently<\/strong><\/h3>\n\nA North Star Metric only works if it is actively used.<\/p>\n\n
Defining it in a slideshow and forgetting about it is not enough.<\/p>\n\n
You must assign owners, track its progress, and tie it to day-to-day decisions.<\/p>\n\n
For example, if a marketing campaign boosts leads but doesn’t improve activation, it might not be helping the North Star. Conversely, if a new feature drives higher recurring usage, it’s almost certainly contributing.<\/p>\n\n
The review cadence will depend on the business. It could be weekly, monthly, or quarterly. The key is reviewing it often enough to drive meaningful decisions.<\/p>\n\n
Adjust the North Star as the business evolves<\/strong><\/h3>\n\nThe North Star Metric shouldn’t change every month, but it doesn’t have to be permanent either.<\/p>\n\n
If your company pivots its business model, launches a new flagship product, or enters a different market, the NSM may need to be updated.<\/p>\n\n
An early-stage startup might focus on activation. A more mature company might prioritize retention or customer lifetime value. A multi-product enterprise might need one overarching primary metric alongside supporting metrics.<\/p>\n\n
The bottom line is that your North Star must continue to reflect the real value you deliver.<\/p>\n\n
Once it stops doing that, it’s time for a review.<\/p>\n\n
<\/p>\n\n
Best North Star Metric examples: Success stories<\/strong><\/h2>\n\nExamples make it easier to understand how a North Star Metric works in practice.<\/p>\n\n
There is no universal metric that works for every company. Each business must find its own based on its value proposition, revenue model, and customer behavior.<\/p>\n\n
Netflix: Watch time<\/strong><\/h3>\n\nFor a platform like Netflix, a watch-time metric makes perfect sense.<\/p>\n\n
Users get value by finding content they care about and watching it. When they consume more content, they perceive more value, stick with their subscription, and recommend the platform.<\/p>\n\n
This is why a North Star tied to viewing hours reflects delivered value much better than simply counting registered users.<\/p>\n\n
Spotify: Listening hours<\/strong><\/h3>\n\nSpotify measures its core value through listening time or hours streamed.<\/p>\n\n
The more a user listens, the more integrated the platform becomes into their daily routine. This directly correlates with retention, satisfaction, and recurring usage.<\/p>\n\n
It’s not just about having users. It’s about getting those users to engage with the product consistently.<\/p>\n\n
Airbnb: Nights booked<\/strong><\/h3>\n\nAt Airbnb, tracking nights booked is a highly accurate reflection of platform value.<\/p>\n\n
For travelers, it means securing accommodation. For hosts, it means generating income. For Airbnb, it means the platform successfully matches supply with demand.<\/p>\n\n
It’s a metric that effortlessly merges customer value with business growth.<\/p>\n\n
Amazon: Completed purchases<\/strong><\/h3>\n\nIn an ecommerce giant like Amazon, completed purchases are a crystal-clear signal of value.<\/p>\n\n
The user finds what they need, trusts the platform, and completes the transaction. This metric is inextricably tied to user experience, product catalog, pricing, logistics, and repeat buying.<\/p>\n\n
That’s why a purchase-driven North Star can bring incredibly diverse teams into total alignment.<\/p>\n\n
Duolingo: Completed lessons<\/strong><\/h3>\n\nDuolingo provides a great example of an educational product’s NSM.<\/p>\n\n
Value isn’t generated at sign-up, but through learning and building a habit. Therefore, tracking completed lessons provides a much better picture of true user progress.<\/p>\n\n
If users are consistently completing lessons, the platform is fulfilling its promise: helping them learn languages through steady practice.<\/p>\n\n
Ecommerce: Repeat customers<\/strong><\/h3>\n\nFor a small or medium-sized ecommerce business, a solid North Star might be “customers who make repeat purchases within a specific timeframe”.<\/p>\n\n
Why?<\/p>\n\n
Because repeat purchasing typically indicates high satisfaction, deep trust, and strong perceived value. It’s not just about winning customers once; it’s about keeping them coming back.<\/p>\n\n
Furthermore, this metric can be seamlessly connected to email marketing, customer service, logistics, product quality, and targeted promotions.<\/p>\n\n
<\/p>\n\n
The importance of pairing your strategy with email marketing<\/strong><\/h2>\n\nYour North Star Metric tells you where your company needs to grow.<\/p>\n\n
But to actually move the needle, you need concrete channels and tactics.<\/p>\n\n
This is where email marketing plays a massive role.<\/p>\n\n
Email lets you guide the user through multiple journey stages: activation, education, conversion, retention, reactivation, and loyalty.<\/p>\n\n
For example, if your North Star is “users who complete a key weekly action”, you can use email marketing to send gentle reminders, explain the process, share best practices, and re-engage users who dropped off halfway.<\/p>\n\n
If your NSM revolves around repeat buying, you can leverage segmented campaigns, personalized recommendations, timely promotions, post-purchase emails, and loyalty-driven workflows.<\/p>\n\n
If your North Star is tied to education, you can deploy learning sequences, progress reminders, supplemental content, or motivational check-ins.<\/p>\n\n
Email marketing is an exceptional tool for driving secondary metrics such as:<\/p>\n\n
\n- New user activation.<\/li>\n\n\n\n
- Clicks on key features.<\/li>\n\n\n\n
- Cart recovery.<\/li>\n\n\n\n
- Repeat purchases.<\/li>\n\n\n\n
- Retention rates.<\/li>\n\n\n\n
- Recurring usage.<\/li>\n\n\n\n
- Reactivation of dormant users.<\/li>\n\n\n\n
- Campaign engagement.<\/li>\n\n\n\n
- Event and webinar attendance.<\/li>\n<\/ul>\n\n
The key is to never send emails without a clear strategy.<\/p>\n\n
Every campaign should tie back to a specific metric and, whenever possible, the overarching North Star.<\/p>\n\n
<\/p>\n\n
Can a company have more than one North Star Metric?<\/strong><\/h2>\n\nIdeally, a company should stick to one primary North Star Metric.<\/p>\n\n
The rationale is simple: if you follow too many north stars, you quickly lose your sense of direction.<\/p>\n\n
The true power of an NSM is its simplicity. It ensures that every team understands the ultimate goal and exactly how they fit into the bigger picture.<\/p>\n\n
However, there are scenarios where a company might genuinely need more than one key metric.<\/p>\n\n
This usually happens in complex enterprises operating multiple products, serving diverse customer segments, or managing fundamentally different revenue models.<\/p>\n\n
For instance, a platform running a marketplace, a SaaS product, and a paid community might require one global North Star alongside distinct primary metrics for each business unit.<\/p>\n\n
In such cases, it is highly recommended to maintain a strict hierarchy:<\/p>\n\n
\n- One overarching company-wide North Star Metric.<\/li>\n\n\n\n
- Supporting metrics tailored to specific products, channels, or teams.<\/li>\n\n\n\n
- Input metrics designed to push each primary metric forward.<\/li>\n\n\n\n
- Tactical KPIs for day-to-day operations.<\/li>\n<\/ul>\n\n
This structure prevents you from losing focus while retaining enough granularity to make informed decisions.<\/p>\n\n
In short: yes, a company can have more than one NSM if its business model demands it. But if you’re just starting out, it’s vastly better to pick just one and learn how to optimize around it.<\/p>\n\n
<\/p>\n\n
Mailrelay: Up to 80,000 free emails for your 360 digital marketing campaigns<\/strong><\/h2>\n\nDefining your North Star Metric is merely the first step.<\/p>\n\n
Next, you need concrete actions to actually move the needle.<\/p>\n\n
And email marketing is arguably one of the most effective channels to make that happen.<\/p>\n\n
With Mailrelay, you can build email marketing campaigns, newsletters, automated flows, and highly targeted communications to guide your users through their entire journey: from initial touchpoint to activation, purchase, loyalty, and reactivation.<\/p>\n\n
If your North Star Metric is tied to retention, repeat purchases, activation, or recurring usage, email is your best tool for keeping the relationship with your contacts alive.<\/p>\n\n
With Mailrelay you get:<\/p>\n\n
Simply put: it’s the metric that tells you if your business is moving in the right direction.<\/p>\n\n
The concept comes from Polaris, which has been used for centuries as a navigational reference. In a business, the North Star works similarly: it ensures all teams know exactly which direction to row.<\/p>\n\n
A strong North Star Metric doesn’t just measure activity. It measures value.<\/p>\n\n
For example, a learning app shouldn’t focus solely on registered users. That metric can grow even if users learn nothing. It would be much more valuable to measure completed lessons, active learning time, or users who maintain a weekly routine.<\/p>\n\n
This difference is crucial.<\/p>\n\n
A metric like “new sign-ups” might indicate successful acquisition. However, a North Star should reflect whether users are receiving actual value from the product or service.<\/p>\n\n
Therefore, a good NSM usually meets three conditions:<\/p>\n\n
- \n
- It is tied to the value the customer receives.<\/li>\n\n\n\n
- It is directly linked to business growth.<\/li>\n\n\n\n
- It can be tracked consistently and is actionable.<\/li>\n<\/ul>\n\n
If a metric grows but fails to improve the customer experience or drive the business forward, it’s likely not a good North Star.<\/p>\n\n
<\/figure>\n\nWhy is it important to have an NSM in your company?<\/strong><\/h2>\n\n
Having an NSM is essential because it cuts through the noise.<\/p>\n\n
In any company, each department typically has its own metrics. Marketing looks at leads. Sales looks at closed deals. Product looks at usage. Customer support looks at satisfaction. Management looks at revenue.<\/p>\n\n
All these metrics are useful, but without a shared goal, teams can easily pull in different directions.<\/p>\n\n
The North Star Metric serves to align everyone.<\/p>\n\n
This doesn’t mean the marketing team stops tracking campaigns or sales stops tracking opportunities. It simply means that all these secondary metrics must ultimately contribute to one overarching goal.<\/p>\n\n
For instance, if a SaaS platform’s NSM is “active users who complete a key action weekly”, marketing must attract high-potential users, product must streamline that action, customer support must resolve blockers, and sales needs to close accounts that fit this behavioral profile.<\/p>\n\n
An NSM also drives better decision-making. Whenever there are doubts about what to prioritize, you can ask yourself: “Does this help move our North Star?”.<\/p>\n\n
If the answer is no, it’s probably not that important.<\/p>\n\n
Its main benefits are:<\/p>\n\n
- \n
- Alignment:<\/strong> All teams work toward the same goal.<\/li>\n\n\n\n
- Focus:<\/strong> It prevents chasing too many metrics simultaneously.<\/li>\n\n\n\n
- Sustainable growth:<\/strong> The company measures real value, not just short-term spikes.<\/li>\n\n\n\n
- Better decision-making:<\/strong> It helps prioritize projects, campaigns, and resources effectively.<\/li>\n\n\n\n
- Customer-centricity:<\/strong> It forces you to focus on the actual value the user receives.<\/li>\n\n\n\n
- Transparency:<\/strong> The entire team understands exactly what growth means for the business.<\/li>\n<\/ul>\n\n
A strong North Star doesn’t replace strategy. It distills it into an easily understandable metric.<\/p>\n\n
<\/p>\n\n
What is the difference between a KPI and a North Star Metric?<\/strong><\/h2>\n\n
A KPI and a North Star Metric are not the same thing, although both are used for measurement.<\/p>\n\n
A KPI<\/strong> (Key Performance Indicator) measures the result of a specific action, channel, team, or campaign.<\/p>\n\n
For example:<\/p>\n\n
- \n
- Email open rates.<\/li>\n\n\n\n
- Number of leads generated.<\/li>\n\n\n\n
- Conversion rate.<\/li>\n\n\n\n
- Customer Acquisition Cost (CAC).<\/li>\n\n\n\n
- Monthly sales.<\/li>\n\n\n\n
- Organic traffic.<\/li>\n\n\n\n
- Customer retention.<\/li>\n<\/ul>\n\n
All these data points are important, but they cannot all be the North Star.<\/p>\n\n
The North Star Metric<\/strong> is highly strategic. It represents the core value the company delivers to the customer and acts as a global guide for growth.<\/p>\n\n
Here is the main difference:<\/p>\n\n
- \n
- A KPI measures a specific slice of performance.<\/li>\n\n\n\n
- A North Star Metric measures the overall direction of the business.<\/li>\n<\/ul>\n\n
For instance, in an email marketing campaign, the open rate is a KPI. Clicks are also a KPI. The conversions generated by that campaign are another KPI.<\/p>\n\n
But if your company is an online learning platform, your North Star might not be any of those metrics. It could be “number of students completing a valuable lesson each week”.<\/p>\n\n
KPIs help you understand if your tactics are working. The North Star helps you ensure the company is delivering value and growing healthily.<\/p>\n\n
Ideally, your KPIs should feed into your NSM.<\/p>\n\n
In other words, the metrics tracked by marketing, sales, product, and customer support should act as levers that help move the primary metric.<\/p>\n\n
<\/figure>\n\nOther articles that may interest you:<\/p>\n\n
- \n
- Customer letters: Types and how to write them effectively<\/a><\/li>\n\n\n\n
- Content Marketing Examples<\/a><\/li>\n\n\n\n
- Manychat: What it is and how to set it up with Instagram and WhatsApp<\/a><\/li>\n\n\n\n
- 360 Marketing: Campaigns, where to run them, how to create them, and examples<\/a><\/li>\n\n\n\n
- Internal Newsletters: Examples and how to create your own<\/a><\/li>\n<\/ul>\n\n
How to define your North Star Metric<\/strong><\/h2>\n\n
Defining your North Star Metric<\/strong> requires more than just picking your favorite data point.<\/p>\n\n
Your NSM must stem from one key question: What is the core value we deliver to our customers, and how can we measure it?<\/p>\n\n
From there, you can follow these steps.<\/p>\n\n
Identify the core value your customer receives<\/strong><\/h3>\n\n
The first step is understanding why your customers use your product or service.<\/p>\n\n
Don’t think about revenue, visits, or leads just yet. Think about value.<\/p>\n\n
What does your brand help the customer achieve? Do they save time? Sell more? Learn something? Get entertained? Manage their work better? Find a faster solution?<\/p>\n\n
For example, in a streaming platform, the value isn’t in signing up. It’s in watching content. In an email marketing tool, the value isn’t just in creating an account. It’s in sending campaigns that get delivered, opened, and generate results.<\/p>\n\n
Your North Star must be closely tied to that moment of value.<\/p>\n\n
Connect that value to business growth<\/strong><\/h3>\n\n
A good North Star Metric should benefit the customer while also directly linking to company growth.<\/p>\n\n
If the metric improves, the business should improve too.<\/p>\n\n
For instance, if a SaaS tool measures “users who complete a key action every week”, that metric is highly likely tied to retention, satisfaction, and future renewals.<\/p>\n\n
In contrast, if it only tracks “registered users”, growth might look impressive on paper, even if most of those users never return.<\/p>\n\n
An NSM should protect against this kind of false positive.<\/p>\n\n
It shouldn’t be a vanity metric. It must be a metric that proves real value and growth potential.<\/p>\n\n
Analyze the customer journey<\/strong><\/h3>\n\n
The next step is to review the customer journey.<\/p>\n\n
From the moment a person discovers your brand until they become a loyal customer, there are several key milestones: acquisition, activation, usage, purchase, repeat purchase, referral, or renewal.<\/p>\n\n
Your North Star should be placed at the exact point where the customer experiences the core value.<\/p>\n\n
For example, in an ecommerce store, it could be the first completed purchase or the number of repeat customers. In a productivity app, it could be the number of completed tasks. In an educational platform, it could be the number of lessons finished.<\/p>\n\n
Not all businesses deliver value at the same stage. Therefore, no two North Star Metrics will be exactly alike.<\/p>\n\n
Choose a metric that is measurable and easy to understand<\/strong><\/h3>\n\n
A North Star Metric must be crystal clear.<\/p>\n\n
If the team doesn’t understand it, it won’t align their decision-making.<\/p>\n\n
It needs to be explainable in a single sentence and measurable on a recurring basis. Furthermore, the data must be available frequently enough to take timely action.<\/p>\n\n
For example:<\/p>\n\n
- \n
- Active customers making a weekly purchase.<\/li>\n\n\n\n
- Users who complete a key action per month.<\/li>\n\n\n\n
- Hours of content consumed by active users.<\/li>\n\n\n\n
- Projects completed within the platform.<\/li>\n\n\n\n
- Sent campaigns with real engagement.<\/li>\n\n\n\n
- Lessons completed by active students.<\/li>\n<\/ul>\n\n
The important thing is that it is neither an abstract concept nor an untrackable metric.<\/p>\n\n
If you need three meetings just to explain what it means, it’s probably not a good North Star.<\/p>\n\n
Break down the NSM into secondary metrics<\/strong><\/h3>\n\n
The North Star doesn’t work alone.<\/p>\n\n
To improve it, you need to understand the secondary metrics driving it. These are often called input metrics.<\/p>\n\n
For instance, if your NSM is “customers who complete their first weekly purchase”, some secondary metrics might be:<\/p>\n\n
- \n
- Product page visits.<\/li>\n\n\n\n
- Add-to-cart events.<\/li>\n\n\n\n
- Completed checkout rate.<\/li>\n\n\n\n
- Abandoned cart recovery emails.<\/li>\n\n\n\n
- Website load time.<\/li>\n\n\n\n
- Clicks on promotional campaigns.<\/li>\n\n\n\n
- Repeat purchases from existing customers.<\/li>\n<\/ul>\n\n
These metrics give every team a clear idea of how they can contribute.<\/p>\n\n
Marketing can boost acquisition. Product can enhance the user experience. Sales can improve conversions. Customer support can remove friction.<\/p>\n\n
The NSM sets the course. Secondary metrics tell you how to get there.<\/p>\n\n
Assign ownership and review the metric frequently<\/strong><\/h3>\n\n
A North Star Metric only works if it is actively used.<\/p>\n\n
Defining it in a slideshow and forgetting about it is not enough.<\/p>\n\n
You must assign owners, track its progress, and tie it to day-to-day decisions.<\/p>\n\n
For example, if a marketing campaign boosts leads but doesn’t improve activation, it might not be helping the North Star. Conversely, if a new feature drives higher recurring usage, it’s almost certainly contributing.<\/p>\n\n
The review cadence will depend on the business. It could be weekly, monthly, or quarterly. The key is reviewing it often enough to drive meaningful decisions.<\/p>\n\n
Adjust the North Star as the business evolves<\/strong><\/h3>\n\n
The North Star Metric shouldn’t change every month, but it doesn’t have to be permanent either.<\/p>\n\n
If your company pivots its business model, launches a new flagship product, or enters a different market, the NSM may need to be updated.<\/p>\n\n
An early-stage startup might focus on activation. A more mature company might prioritize retention or customer lifetime value. A multi-product enterprise might need one overarching primary metric alongside supporting metrics.<\/p>\n\n
The bottom line is that your North Star must continue to reflect the real value you deliver.<\/p>\n\n
Once it stops doing that, it’s time for a review.<\/p>\n\n
<\/p>\n\n
Best North Star Metric examples: Success stories<\/strong><\/h2>\n\n
Examples make it easier to understand how a North Star Metric works in practice.<\/p>\n\n
There is no universal metric that works for every company. Each business must find its own based on its value proposition, revenue model, and customer behavior.<\/p>\n\n
Netflix: Watch time<\/strong><\/h3>\n\n
For a platform like Netflix, a watch-time metric makes perfect sense.<\/p>\n\n
Users get value by finding content they care about and watching it. When they consume more content, they perceive more value, stick with their subscription, and recommend the platform.<\/p>\n\n
This is why a North Star tied to viewing hours reflects delivered value much better than simply counting registered users.<\/p>\n\n
Spotify: Listening hours<\/strong><\/h3>\n\n
Spotify measures its core value through listening time or hours streamed.<\/p>\n\n
The more a user listens, the more integrated the platform becomes into their daily routine. This directly correlates with retention, satisfaction, and recurring usage.<\/p>\n\n
It’s not just about having users. It’s about getting those users to engage with the product consistently.<\/p>\n\n
Airbnb: Nights booked<\/strong><\/h3>\n\n
At Airbnb, tracking nights booked is a highly accurate reflection of platform value.<\/p>\n\n
For travelers, it means securing accommodation. For hosts, it means generating income. For Airbnb, it means the platform successfully matches supply with demand.<\/p>\n\n
It’s a metric that effortlessly merges customer value with business growth.<\/p>\n\n
Amazon: Completed purchases<\/strong><\/h3>\n\n
In an ecommerce giant like Amazon, completed purchases are a crystal-clear signal of value.<\/p>\n\n
The user finds what they need, trusts the platform, and completes the transaction. This metric is inextricably tied to user experience, product catalog, pricing, logistics, and repeat buying.<\/p>\n\n
That’s why a purchase-driven North Star can bring incredibly diverse teams into total alignment.<\/p>\n\n
Duolingo: Completed lessons<\/strong><\/h3>\n\n
Duolingo provides a great example of an educational product’s NSM.<\/p>\n\n
Value isn’t generated at sign-up, but through learning and building a habit. Therefore, tracking completed lessons provides a much better picture of true user progress.<\/p>\n\n
If users are consistently completing lessons, the platform is fulfilling its promise: helping them learn languages through steady practice.<\/p>\n\n
Ecommerce: Repeat customers<\/strong><\/h3>\n\n
For a small or medium-sized ecommerce business, a solid North Star might be “customers who make repeat purchases within a specific timeframe”.<\/p>\n\n
Why?<\/p>\n\n
Because repeat purchasing typically indicates high satisfaction, deep trust, and strong perceived value. It’s not just about winning customers once; it’s about keeping them coming back.<\/p>\n\n
Furthermore, this metric can be seamlessly connected to email marketing, customer service, logistics, product quality, and targeted promotions.<\/p>\n\n
<\/p>\n\n
The importance of pairing your strategy with email marketing<\/strong><\/h2>\n\n
Your North Star Metric tells you where your company needs to grow.<\/p>\n\n
But to actually move the needle, you need concrete channels and tactics.<\/p>\n\n
This is where email marketing plays a massive role.<\/p>\n\n
Email lets you guide the user through multiple journey stages: activation, education, conversion, retention, reactivation, and loyalty.<\/p>\n\n
For example, if your North Star is “users who complete a key weekly action”, you can use email marketing to send gentle reminders, explain the process, share best practices, and re-engage users who dropped off halfway.<\/p>\n\n
If your NSM revolves around repeat buying, you can leverage segmented campaigns, personalized recommendations, timely promotions, post-purchase emails, and loyalty-driven workflows.<\/p>\n\n
If your North Star is tied to education, you can deploy learning sequences, progress reminders, supplemental content, or motivational check-ins.<\/p>\n\n
Email marketing is an exceptional tool for driving secondary metrics such as:<\/p>\n\n
- \n
- New user activation.<\/li>\n\n\n\n
- Clicks on key features.<\/li>\n\n\n\n
- Cart recovery.<\/li>\n\n\n\n
- Repeat purchases.<\/li>\n\n\n\n
- Retention rates.<\/li>\n\n\n\n
- Recurring usage.<\/li>\n\n\n\n
- Reactivation of dormant users.<\/li>\n\n\n\n
- Campaign engagement.<\/li>\n\n\n\n
- Event and webinar attendance.<\/li>\n<\/ul>\n\n
The key is to never send emails without a clear strategy.<\/p>\n\n
Every campaign should tie back to a specific metric and, whenever possible, the overarching North Star.<\/p>\n\n
<\/p>\n\n
Can a company have more than one North Star Metric?<\/strong><\/h2>\n\n
Ideally, a company should stick to one primary North Star Metric.<\/p>\n\n
The rationale is simple: if you follow too many north stars, you quickly lose your sense of direction.<\/p>\n\n
The true power of an NSM is its simplicity. It ensures that every team understands the ultimate goal and exactly how they fit into the bigger picture.<\/p>\n\n
However, there are scenarios where a company might genuinely need more than one key metric.<\/p>\n\n
This usually happens in complex enterprises operating multiple products, serving diverse customer segments, or managing fundamentally different revenue models.<\/p>\n\n
For instance, a platform running a marketplace, a SaaS product, and a paid community might require one global North Star alongside distinct primary metrics for each business unit.<\/p>\n\n
In such cases, it is highly recommended to maintain a strict hierarchy:<\/p>\n\n
- \n
- One overarching company-wide North Star Metric.<\/li>\n\n\n\n
- Supporting metrics tailored to specific products, channels, or teams.<\/li>\n\n\n\n
- Input metrics designed to push each primary metric forward.<\/li>\n\n\n\n
- Tactical KPIs for day-to-day operations.<\/li>\n<\/ul>\n\n
This structure prevents you from losing focus while retaining enough granularity to make informed decisions.<\/p>\n\n
In short: yes, a company can have more than one NSM if its business model demands it. But if you’re just starting out, it’s vastly better to pick just one and learn how to optimize around it.<\/p>\n\n
<\/p>\n\n
Mailrelay: Up to 80,000 free emails for your 360 digital marketing campaigns<\/strong><\/h2>\n\n
Defining your North Star Metric is merely the first step.<\/p>\n\n
Next, you need concrete actions to actually move the needle.<\/p>\n\n
And email marketing is arguably one of the most effective channels to make that happen.<\/p>\n\n
With Mailrelay, you can build email marketing campaigns, newsletters, automated flows, and highly targeted communications to guide your users through their entire journey: from initial touchpoint to activation, purchase, loyalty, and reactivation.<\/p>\n\n
If your North Star Metric is tied to retention, repeat purchases, activation, or recurring usage, email is your best tool for keeping the relationship with your contacts alive.<\/p>\n\n
With Mailrelay you get:<\/p>\n\n
- Content Marketing Examples<\/a><\/li>\n\n\n\n
- Customer letters: Types and how to write them effectively<\/a><\/li>\n\n\n\n
- Focus:<\/strong> It prevents chasing too many metrics simultaneously.<\/li>\n\n\n\n
- Alignment:<\/strong> All teams work toward the same goal.<\/li>\n\n\n\n