North star metric
Framework metric. Which one number sums up value?
What is the north star metric?
A north star metric is the single measure a team picks to capture the value users get from the product, chosen so that growing it tends to grow revenue too.
Input metric: a metric a team can move directly that feeds the north star, such as activation rate.
How to calculate North star metric
North star = Users doing the core action × How often they do it, in a set period- Users doing the core action
- active users who did the action that delivers value
- How often
- average number of times each of them did it in the period
Where definitions differ
| Variant | Formula | When to use it |
|---|---|---|
| Breadth form | Weekly users doing the core action | Simple and hard to game. |
| Depth form | Weekly core actions | Rewards frequency as well as reach. |
| Input metrics | Activation, retention, frequency | The levers that move the north star; teams own these. |
North star metric calculator
Example inputs: change them to your own numbers. The examples only make the calculator show a worked answer; they are not benchmarks or targets. Runs in your browser; nothing you type is sent anywhere.
- Weekly users doing the core action
- 18,000
- Weekly core actions
- 54,000
What makes a good north star metric?
It reflects value delivered to users, moves before revenue does, and can be influenced by product and marketing teams. Installs and raw revenue fail the first test, which is why they are rarely chosen.
How North star metric differs by vertical
| EdTech | Weekly learners who complete at least one lesson. |
|---|---|
| Fintech | Monthly transacting users, or value transacted per month. |
| OTT and streaming | Weekly viewing hours, or weekly viewers who finish an episode. |
| Gaming | Daily players who finish a session or match. |
Common mistakes
- Choosing a vanity metric such as installs or app opens.
- Changing the north star every quarter, so no trend builds up.
Questions
What is a north star metric for an app?
It is the one number a team uses to judge whether users are getting value, such as weekly learners completing a lesson. It sits above the funnel metrics that feed it.
Can revenue be a north star metric?
It can, but revenue usually lags value and can be raised in ways that hurt users. Most teams pick a usage measure that tends to lead revenue.
What is the north star metric for an EdTech app?
A common choice is weekly learners who complete at least one lesson, because it combines reach and real learning. Course-based apps sometimes use weekly course progress instead.
What is the difference between a metric and a KPI?
A metric is any measured quantity; a KPI is a metric a team has chosen as a target for judging performance. Most metrics here become KPIs only for the teams whose work moves them.
Do I need an MMP to measure these metrics?
Not for all of them. Engagement and monetisation metrics come from product analytics and billing data, while metrics split by ad channel, such as CPI, ROAS or retention by source, need installs attributed to campaigns.
Are the calculator's example inputs benchmarks?
No. The example inputs only make the calculator show a worked answer when the page loads; they are not typical, good or target values. Replace them with your own numbers.