No results found for your search
This is an awesome article on the North Star Metric from Sandhya Hegde at Amplitude. Not surprisingly I reached out to her to do a webinar together as soon as I read this. We've got something brewing!
I really liked this post.
It has some concepts that have been covered by other retention related posts I've read but this one took it further with the Coverage/Precision/Recall framework to find potential leading indicators which is something I haven't seen before. This puts you one step close to building a predictive growth model for your business.
Hi Sean, Really loved your concept of North star metric because they are way too many metrics and it's become totally overwhelming to understand what is actually going on. So, it is very important to find your few critical metrics ( KPIs) to measure success and growth.
I basically like to pick 2 Key performance indicators ( North star metrics) in each of the 3 buckets - Acquisition, behavior, and outcomes to understand the complete journey from start to end.
1. Acquisition - How good my/your company is acquiring the users.
2. Behavior - what the customers are doing once they visited the website.
3. Outcome - what is the impact of it on our business.
6 KPIs to understand the complete success of a business. Solving for the complete journey and 100% of the customers, not just the 2-3% of the customers( the average conversion rate.)
We recently wrote a post about it, in which we also did workout examples of 3 websites ( E-commerce and Non- E-commerce) and showed the process of finding the right KPIs( The North star metric) for any kind of businesses. If it might be of your interest, you can check out here - https://www.lifewithdata.com/2018/04/what-is-kpi-24-examples-of-most.html
Please let me know your thoughts about it.
Thanks, for reading it.
It’s funny, as soon as I saw the original article I knew this would spark an interesting conversation. I think a good NSM can point to growth all along the funnel, can align a team, and inform sub-metrics that inspire effective testing. I also think it can be incredibly difficult to hone in on the perfect NSM, and if you can’t find one you may have to work around a few metrics that your team can rally around. Also, your NSM may have to evolve over time as you grow. Clearly, you have to be careful about over-emphasizing your NSM, but I have found it to be a valuable tool in our growth efforts.
I have a ton of respect for each of the authors so it’s not surprising that they would write such a thought provoking article. Thanks guys for getting me thinking… Despite 20+ years of helping to build the early growth engines in several companies that have gone on to exceed billion dollar valuations (Dropbox, LogMeIn, Eventbrite, Lookout…), I still feel like I’m just scratching the surface in terms of truly understanding growth. Fortunately, it’s this mindset that has allowed me to keep improving my understanding of growth over time. So hopefully some discussion about the article will be welcome and beneficial for all of us.
OMTM vs NSM
In the article, the authors use North Star Metric and One Metric that Matters interchangeably. I define a North Star Metric (NSM) as the single best metric for tracking accumulated user value for a product over a time period. In other words, it is a company-wide metric for tracking sustainable growth. The concept of One Metric that Matters (OMTM), as I understand it, is not the same thing as North Star Metric. I first learned about OMTM from the book Lean Analytics by Alistair Croll and Ben Yoskovitz. They define OMTM as the “one metric that matters — right now.” In other words, what is the one metric that is most broken at this moment in the company or for a given team? I think this is a useful concept to bring focus to a team. But without combining it with an NSM it can lead to some potentially haphazard chasing of metrics. North Star Metric is important because without expanding value, growth of any other metric is unsustainable.
As a side note, I’ve always disliked the phrase OMTM because I agree that it seems to indicate that there is only one metric that matters. Again, that was not the intention of the authors of Lean Analytics.
My full response is pretty long, so here's a link that I posted on the GrowthHackers Blog: https://blog.growthhackers.com/does-a-north-star-metric-oversimplify-growth-7c8428b0307f
This is a must watch panel for the core of what goes into generating sustainable growth.
It's also a great complement to @edbaker's fireside chat with @sean at #GHConf17 where he reiterated the central theme & importance of identifying a north star metric (https://blog.growthhackers.com/what-is-a-north-star-metric-b31a8512923f)
Super smart group on this panel. Highly recommend watching this.
I just sent you an invitation on LinkedIn - I'm looking forward to chatting with you!
Hey Justin - Any chance we could connect on the phone or by email to chat. I'd just love an outside perspective and I'm sure I'll reach out to Sean as well but happy to connect with you too!
I completely agree. With metric overload, it can sometimes be overwhelming to know where to put your efforts. This has helped bring a lot of clarity to my startup and ensure that efforts are being utilized properly. Thank you for the share and glad this was helpful!
Join over 70,000 growth pros from companies like Uber, Pinterest & Twitter
Use the feedback box below if you have a question, comment or general feedback.
Your feedback has been sent.