How to formulate a North Star Metric for a product?

North Star Metric (NSM) is a key metric that reflects the core value of the product for users and serves as a guiding star for the entire team.

To formulate an NSM:

1. Identify the core value that the product provides to users.
2. Choose a metric that directly reflects the usage of this value.
3. Ensure that the metric is measurable, understandable, and influences business goals.

Example: for a streaming service, the NSM could be "the number of hours of video watched per month per active user" — this reflects engagement and the value of the service.

It is important that the NSM is a focus for all teams and helps in making decisions aimed at growth and product improvement.