What is the North Star Metric and why is it needed?

North Star Metric (NSM) is a key product metric that reflects the core value the product provides to users. It serves as a guiding light for the entire team and helps focus on what truly matters for growth and success.

Why NSM is needed:

• It unites the team around a single goal
• It allows measuring progress and the effectiveness of changes
• It helps make decisions oriented towards long-term growth

Example: for a streaming service, the NSM could be "hours watched per month," as it is directly related to user engagement and revenue.

It is important that the NSM:

• Is simple to understand
• Is connected to user value
• Is measurable and impactful on business results