north-star-metric

1# North Star Metric
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3Identify a North Star Metric and 3-5 Input Metrics that form a metrics constellation. Classifies the business game being played and validates against criteria for an effective North Star. Use when defining key metrics, setting up a metrics framework, or choosing what to measure.
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5## Domain Context
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7NSM is **NOT**: multiple metrics, a revenue/LTV metric (must be customer-centric), an OKR (that's a goal-setting technique), or a strategy (but choosing the right NSM is a strategic choice).
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9NSM **IS**: a single, customer-centric KPI that reflects the value customers get from the product and serves as a leading indicator of long-term business success. You can use Key Results (OKRs) to express expected change in NSM.
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11Free resource: [The North Star Framework 101 (PDF)](https://learn.productcompass.pm/nsm101)
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13## When to Use
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15- Defining your company's key metric framework
16- Setting up a metrics tracking system
17- Choosing what to measure and optimize for
18- Evaluating potential North Star candidates
19- Triggers: North Star metric, north star, key metric, what to measure, metrics framework, OMTM
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21## The Three Business Games
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23Before identifying your North Star, classify your business into one of these three games:
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25- **Attention Game**: How much time do customers spend using your product? (Examples: Facebook, Spotify, YouTube, TikTok)
26- **Transaction Game**: How many transactions occur between customers and your platform? (Examples: Amazon, Uber, Airbnb, PayPal)
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