A north star metric is the key measure of success for a product team.

It defines the relationship between client problems and revenue the business aims to generate.

It gives the team clarity and alignment on what needs to be optimized, it communicates the impact and progress to the rest of the company and it holds a product accountable to a particular outcome.

Most companies measure their product teams by how much they ship, when instead they should have an impact driven approach.

A good north star metric measures customer value, represents product strategy and is a leading indicator of revenue.

Facebook example: In its early days, Facebook chose “# users adding 7 friends in first 10 days” as their key metric.

A company may have 1-3 core product metrics, not more. Learn more on how to choose them here.

Credits: Dan Martell on Twitter

TO DO: Identify product’s north star metric to define relationship product has with business revenue.

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