North Star Metric: 6 steps to discover your NSM

What is a North Star Metric?

A north star metric must have these three factors:

Linkedin’s initial NSM was the number of endorsements given because it was a relationship-building factor between the users. But LinkedIn soon realized that endorsements were falsified and they changed their NSM to monthly active users (MAU).
Spotify’s NSM is the time spent listening on the platform. This NSM measures the value that customers get from the platform.
HubSpot is a CRM and its NSM is the number of weekly active teams. It captures the new accounts that are getting value and providing a signal of future trial conversion and subscription revenue. Hence this metric indicates or predicts the future revenue.
Intercom is a messaging platform with the vision to build a suite of products that makes easy communication with the users of your business. It offers services for both B2B and B2C segments. Their NSM is the number of customer interactions.
Slack helps in-office collaboration with the mission to keep teams organized and its NSM is messages sent within the organization.
Quora north star metric is the number of questions answered, which is aligned with their mission of being a knowledge-sharing platform.

Airbnb has the number of nights booked as their NSM because it perfectly combines the booker’s and owner’s value.