North Star Metric

A North Star Metric is a key performance indicator (KPI) that represents the primary measure of success for a business or product. It's the one metric that contains the core value delivered to customers and aligns with the long-term vision of the company. This metric helps guide decision making and prioritization efforts across the organization.

For example, for a social media platform, the North Star Metric might be Daily Active Users (DAU), as this reflects how engaged users are with the platform. For an e-commerce company, it could be Monthly Recurring Revenue (MRR), indicating the company's ability to generate consistent revenue from its customers.

The North Star Metric should be simple, easy to understand, and directly related to the value proposition of the business and its mission. It serves as a guiding light for the entire organization, focusing efforts on what truly drives long term success.

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