North Star Metrics 101
Over the past several years, @johncutlefish went through 100s of North Star Workshops with real companies at @Amplitude_HQ
Want to know a secret?
John distilled 4 patterns for North Star Metrics & 8–12 patterns for Input Metrics (see details below) 🧵👇
North Star Metric Pattern #1
COUNT OF ACCOUNTS
w/ behaviours x, y, z + time component
Paid customers (Airtable uses “Weekly Paid Seats”), or Paid teams (Slack uses “Number of Paid Teams,” Dropbox uses “Teams using Dropbox Business”).
North Star Metric Pattern #2
COUNT OF HUMANS
w/ behaviours x, y, z + time component
Duolingo and Strava, for example, both focus on engagement (e.g. DAU and MAU, respectively) because they have a large free-user base that eventually migrates to paid
North Star Metric Pattern #3
COUNT OF A KEY VALUE PRODUCING/GENERATING ACTION
w/ time component
Miro uses “number of collaborative boards”. The core of its growth strategy is inter-organization virality.
North Star Metric Pattern #4
COUNT OF INTERACTIONS BETWEEN HUMANS
Works for community-based products, and even marketplaces like Airbnb, though the interaction there = transaction.
The North Star Metric formalises the strategy & can change if the strategy does
Shopify focuses on active merchants vs. number of transactions.
This is because rather than solely collecting a take-rate, the company also charges a subscription fee.
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That’s a wrap!