How to decompose North Star into input metrics?

Decomposition of the North Star Metric (NSM) into input metrics is the process of breaking down the main product metric into smaller, manageable indicators that directly influence the NSM. This helps to understand which specific user actions or internal processes lead to the growth of the key metric.

Example approach:

1. Define the North Star Metric — the primary metric reflecting the product's value to the user (e.g., number of active users, usage time, number of transactions).
2. Identify key factors influencing the NSM — these will be the input metrics. For example, for the NSM "daily active users," input metrics could be:
   • Number of new registrations
   • User retention rate
   • Frequency of using key features
3. For each input metric, determine ways to measure and improve it.

Thus, decomposition helps focus on specific actions and improvements that lead to the growth of the North Star Metric.