Every business wants to grow. That’s the dream, right? But growth needs direction. That’s where the beloved “North Star” metric comes in. It’s supposed to point your team toward true success. But sometimes, this magical metric becomes a little… confusing. Or worse, harmful.
Let’s dive into what can go wrong with North Star metrics and how to fix them. And don’t worry — we’ll keep it fun and easy to follow.
What Is a North Star Metric Anyway?
Your North Star metric is the one number that best captures the core value your product delivers to customers.
Sounds simple, right? Here are a few examples:
- For Spotify: Minutes of music streamed
- For Airbnb: Nights booked
- For Slack: Messages sent
This metric helps align everyone — from engineers to marketers — around what truly matters.
But here’s the catch. Pick the wrong metric or use it the wrong way, and you could end up driving into a ditch.
Common Pitfalls
1. Picking the Wrong Metric
The most common mistake? Choosing a metric that’s easy to measure but doesn’t reflect customer value.
Imagine this: A food delivery app picks “number of orders placed” as its North Star. Seems reasonable, right? But what if users are only ordering once and never coming back? You won’t know.
The Fix: Choose a metric that shows long-term value. Like “repeat orders per user.” That shows people are getting value and returning.
2. Following One Number Blindly
Some teams obsess over only the North Star number. Every feature, campaign, and decision is made to move that single line. That’s dangerous.
Why? Because not all changes that boost your North Star metric are good for the product.
For example: You might increase “messages sent” in an app by spamming users with notifications. The number goes up — but users leave angry.
The Fix: Use guardrail metrics. These are supporting numbers that make sure progress is healthy. Think of them like bumpers in bowling. They keep you on the right track.
3. Ignoring Different Teams’ Needs
Let’s be real. Your marketing team and your engineering team might care about different things. A single shared North Star might not give them all they need to grow.
The Fix: Start with a shared North Star at the company level. Then, let each team have its own version. These team-level metrics feed into the big one. That way, everyone stays aligned, but also has something to own.
When North Star Becomes a Black Hole
A bad North Star metric can suck energy away from what really matters. Here’s how to know if it’s gone wrong:
- The team works hard, but customer happiness isn’t improving.
- Lots of users sign up, but nobody sticks around.
- You’re chasing a metric, not solving a problem.
You want a North Star that lights the way. Not one that blinds you.
Better Ways to Use Your North Star
Okay, now for the good stuff. Let’s re-align your compass.
1. Make It User-Centric
Your North Star should show how much real value your user is getting. Not just how many people sign up. Ask yourself: “If this number goes up, does that mean our users are happier and more successful?”
2. Make It Measurable — But Not Manipulatable
Yes, your North Star should be measurable. But it shouldn’t be too easy to game.
Let’s say your metric is “app downloads.” Great, you can run ads and boost numbers fast. But that doesn’t mean people love your app. And it doesn’t mean they’ll come back.
Look for a deeper signal — like “7-day retention” or “feature adoption.” Those tell a better story.
3. Keep It Simple
If it takes a ten-slide PowerPoint to explain your North Star, it’s too complicated. Good North Stars are clear, specific, and memorable.
And nobody forgets a great North Star. Imagine someone walking through the office shouting it. Would people cheer or squint in confusion?
4. Revisit Periodically
Businesses grow. Products change. So can your North Star metric.
Don’t stick with a metric just because you picked it two years ago. Revisit it regularly. Ask: Is this still the right guiding light for where we are now?
Modern companies evolve fast. Your North Star should evolve with you.
Mini Case Studies
Spotify
Spotify’s North Star focuses on “time spent listening.” But that metric comes with guardrails. They track engagement, satisfaction, and churn along with it. That’s how they stay user-focused.
LinkedIn focused too hard on the number of connections for a while. So people started adding strangers aimlessly. Oops. They later shifted to measuring “meaningful connections and engagement.” Smarter.
Duolingo
Duolingo tracks “number of active learning users” as their North Star. Want to know the secret sauce? They don’t just track logins — they measure actual learning sessions. Tiny distinction, big difference.
Bonus Tips
- Mix metrics with mission. Your number should reflect your “why.”
- Avoid vanity. Big-looking numbers are tempting. But do they tell the truth?
- Align incentives. Reward teams based on real progress, not just numbers that look good in a chart.
- Talk about it. A lot. Your team should hear about the North Star regularly in standups, dashboards, and even emails.
Final Thoughts
North Star metrics can be magical. They bring clarity, focus, and alignment. But they’re not magic. And like any tool, they can be used wrong.
A bad metric can lead your team into murky waters. A good one? It lights up your path like a beacon on a stormy night.
Pick wisely. Revisit often. And always remember: metrics are a means, not the mission.
Now go lead your team to that shining goal. Just don’t forget to pack a map, a compass, and a lot of common sense.
