Building on our earlier link about measuring the impact of features, how can we keep track of the overall health of the product? That’s where a North Star Metric comes in.
Julia Sholtz writes and introduction to North Star Metrics in the analytics provider Amplitude’s blog:
Your North Star Metric should be the key measure of success for your company’s product team. It defines the relationship between the customer problems your product team is trying to solve and the revenue you aim to generate by doing so.
How is it done? The first step is to figure out the “game” your business is playing: how your business engages with customers:
- The Attention Game: How much time are your customers willing to spend in your product?
- The Transaction Game: How many transactions does your user make on your platform?
- The Productivity Game: How efficiently and effectively can someone get their work done in your product?
They have a whole resource section on this topic that’s worth exploring.
