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07 · Marketing · Measurement

North Star Metric

Defines one customer-value metric and supporting input metrics with clear measurement assumptions.

north-starkpimeasurementcustomer-valuemarketing

North Star Metric Framework — PM Skills · Original SKILL.md

---
name: north-star-metric
description: "Define a North Star Metric and 3-5 supporting input metrics that form a metrics constellation. Classify the business game (Attention, Transaction, Productivity) and validate against 7 criteria for an effective North Star. Use when choosing a North Star Metric, setting up a metrics framework, learning about the North Star Framework, or deciding what to measure."
---
# North Star Metric

Identify 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.

## Domain Context

NSM 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).

NSM **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.

Free resource: [The North Star Framework 101 (PDF)](https://learn.productcompass.pm/nsm101)

## When to Use

- Defining your company's key metric framework
- Setting up a metrics tracking system
- Choosing what to measure and optimize for
- Evaluating potential North Star candidates
- Triggers: North Star metric, north star, key metric, what to measure, metrics framework, OMTM

## The Three Business Games

Before identifying your North Star, classify your business into one of these three games:

- **Attention Game**: How much time do customers spend using your product? (Examples: Facebook, Spotify, YouTube, TikTok)
- **Transaction Game**: How many transactions occur between customers and your platform? (Examples: Amazon, Uber, Airbnb, PayPal)
- **Productivity Game**: How efficiently can someone complete their work or achieve their goals? (Examples: Canva, Dropbox, Loom, Notion)

## Prompt

You are a metrics strategist specializing in North Star metrics and growth measurement frameworks.

Given the following business context: $ARGUMENTS

**Step 1: Classify the Business Game**
Determine which game this company plays: Attention, Transaction, or Productivity.

**Step 2: Identify the North Star Metric**
Suggest a single metric that meets all seven criteria for an effective North Star:

1. **Easy to Understand**: Clear definition that everyone in the organization comprehends
2. **Customer-Centric**: Reflects value delivered to customers, not just revenue or activity
3. **Sustainable Value**: Indicates habits and long-term customer engagement
4. **Vision Alignment**: Represents meaningful progress toward the company's vision and mission
5. **Quantitative**: Measurable with clear, numeric tracking
6. **Actionable**: Teams can directly influence it through product, marketing, and operational changes
7. **Leading Indicator**: Predicts future business success and revenue growth

**Step 3: Identify Input Metrics**
Define 3-5 Input Metrics (also called leading indicators) that most directly influence and drive the North Star Metric. Each input metric should:
- Be easier to move in the short term
- Directly contribute to the North Star outcome
- Help identify where optimization efforts should focus

## Tips for Best Results

- Provide details about your business model and revenue model
- Share your company's vision, mission, or long-term goals
- Include current metrics you're tracking
- Mention key customer segments and use cases
- Describe the primary value you deliver to customers

---

### Further Reading

- [The North Star Framework 101](https://www.productcompass.pm/p/the-north-star-framework-101)
- [AARRR (Pirate) Metrics: The 5-Stage Framework for Growth](https://www.productcompass.pm/p/aarrr-pirate-metrics)
- [The Google HEART Framework: Your Guide to Measuring User-Centric Success](https://www.productcompass.pm/p/the-google-heart-framework)
- [The Ultimate List of Product Metrics](https://www.productcompass.pm/p/the-ultimate-list-of-product-metrics)

When to use

Choosing what to measure across product value, retention and growth.

What you get

A candidate North Star, three to five inputs, definitions and a validation plan.

How it works

Clarify the value customers receive, evaluate candidate metrics and identify data needed to validate predictive value.

Requirements

Business context, customer-value hypothesis and available metric definitions. Linked framework PDFs are optional, not prerequisites.

Starting prompt

Define a North Star metric for [BUSINESS]. Explain numerator, denominator, time window and available data. Treat links to retention or revenue as hypotheses until validated.

Not for

Assuming that a framework proves causality, deploying tracking code or replacing financial reporting.

What M11 added

M11 added task routing, evidence requirements, explicit scope boundaries and curated pack/relationship placement around the unchanged original skill.

Original authorship remains with phuryn/pm-skills · Original source ↗

Original license & copyright

MIT License

Copyright (c) 2026 Pawel Huryn

Permission is hereby granted, free of charge, to any person obtaining a copy
of this software and associated documentation files (the "Software"), to deal
in the Software without restriction, including without limitation the rights
to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
copies of the Software, and to permit persons to whom the Software is
furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all
copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
SOFTWARE.

Source SHA-256: 00242397486a88bb7e91a1d6c99e29fd51bdc9a1cd5def9771988fb40c195fb8
Snapshot checked: 2026-09-28T10:51:36.060481+00:00

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