A naukri.com initiative
Medium
1d
173
Image Credit: Medium
Setting North Star Metrics & Leading Indicators
- Identifying which metrics to track can be a challenge for product managers, as not all numbers are relevant to their product. A North Star metric, which describes the core value your product provides to users, can help guide the selection of leading indicators and other metrics. To establish a North Star metric, product managers must articulate the basic facets of their product. They can then isolate the core interaction, such as the cycle of uploading a video and receiving feedback, which becomes the North Star metric. Leading indicators are metrics that your team directly influences, which are predictive of how your product will perform. These metrics should be thought of as driving North Star metric performance. Finally, knowing your product's growth phase will help you determine which metrics matter most at the current time.
- North Star metrics should be based on the core value a product delivers to its users, not just any ol' number. For example, if you build a product that allows people to upload videos of themselves exercising and receive feedback from professional athletes, then the number of feedback cycles could become your North Star metric.
- Product managers need to know which metrics to track and which are irrelevant. Using a North Star metric can help. A North Star metric is the one core metric that best describes the value a product delivers to its users — feedback cycles in the exercise app example above.
- Leading indicators are metrics that the product team directly influences and that are predictive of how the product will perform. So if the product team drives up these metrics, then the North Star metric will get better.
- To help determine which metric to focus on, consider where your product is in terms of growth. For a product that has just launched, focus on indicators that get users on to, and using, your product.
- A North Star metric is the core metric of a product that best displays value to the end user. When thinking about North Star metrics, it is important to also know which metrics to track that can impact the North Star metric performance. These are called Leading metrics.
- Leading Indicators are metrics that the product teams directly influence and predict the performance of the North Star Metric. Knowing the product phase and understanding where the product is more valuable can help determine which North Star and Leading indicators to track.
- A North Start Metric is the keystone metric for your business – it's the one metric that determines everything. It's the metric that makes or breaks your business, whether or not users stick around or churn out.
- North Star metrics should be based on the core value a product delivers to its user. A North Star metric is a business metric that drives growth and is focused on the customer. Examples include weekly active users and monthly recurring revenue, among others.
- Product managers can make creating a North Star metric easier by following these guidelines: understand your product's primary value, identify the critical customer interaction, and then link those to a key metric. From there, Leading Indicators can be determined to guide progress towards improving the North Star metric.
Read Full Article
10 Likes
For uninterrupted reading, download the app