North Star Metric (NSM)

The North Star Metric (NSM) is a single metric that drives all of the growth team’s activities. It’s the KPI that the company should always focus on and strive for achieving. Optimizing your efforts to grow this metric is key to driving sustainable growth across your full customer base. Once you have set your company’s NSM, you can then determine the different variables that relates to and affect this NSM. These variables generally include parts of the customer lifecycle such as website visits, user activations, and user retention. When all of this is determined, you can then start to optimizing the different variables in order to ultimately improve your company’s NSM.