The Three Criteria
A valid North Star Metric must satisfy all three:
- Measures value delivered: It captures the moment a customer receives the core value of your product — not a proxy like signups or page views
- Predicts long-term revenue: Higher values of this metric should correlate strongly with higher revenue 3–6 months later
- The whole team can influence it: Engineering, product, marketing, and sales can all take actions that move this number
North Star Examples by Business Model
Indian Startup North Star Examples
- B2B SaaS: Weekly Active Teams (Slack model) · Monthly Reports Generated · Active Integrations per Account
- D2C / E-commerce: Monthly Orders per Active Customer · Repeat Purchase Rate · Average Order Value × Frequency
- Marketplace: Successful Transactions per Month · GMV · Listings with ≥1 Inquiry
- FinTech / Lending: Monthly Active Borrowers · Loan Applications Completed · Active Credit Lines
- EdTech: Weekly Learning Hours · Course Completion Rate · Assessments Passed
- HealthTech: Consultations Completed · Active Care Plans · DAU with ≥1 Health Log
Common North Star Mistakes
- Choosing a vanity metric: App downloads, website visitors, and social followers are not North Star metrics — they don't predict revenue or measure value delivered
- Revenue as North Star: Revenue is a lagging indicator. Choose a leading metric that predicts revenue — by the time revenue drops, it's too late to act
- Too broad: "Customer satisfaction" is too vague to run experiments against. It must be quantifiable and measurable weekly
- Too narrow: A metric only one team influences (e.g., only the ML team can move it) won't align the company