This lesson introduces the North Star Metric Framework. The framework helps teams align around a common goal and make informed decisions that drive sustainable growth.
A North Star Metric is a single, critical metric that represents your product strategy and is a leading indicator of long-term business success.
The North Star Metric Framework includes Input Metrics, which are the variables that directly influence your North Star Metric, and the Business Goal, which is your organization's long-term aim.
By tracking and analyzing Input Metrics, teams can identify opportunities to improve the user experience and drive growth.
Aligning the North Star Metric with the Business Goal ensures that teams are focused on scalable, sustainable growth.
FoodFleet, a fictional app that connects users with local restaurants, uses "Weekly Users Completing Orders" as its North Star Metric. This metric captures the essence of what the app is all about: not just passive usage, but active engagement.
FoodFleet also tracks a variety of Input Metrics, such as Weekly User Sign-Ups, Daily Active Users, Monthly Retention Rate, Restaurant Interaction, Order Completion Rate, and NPS Score. By analyzing these Input Metrics, FoodFleet can identify bottlenecks or growth opportunities. For instance, if the Order Completion Rate is low, this could be an indicator to improve the user experience or the variety of available menu items.
The North Star Metric Framework is a powerful tool that can help mobile app product teams achieve their goals. By understanding and implementing this framework, teams can align around a common goal, make informed decisions, and drive sustainable growth.