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North Star Metric (NSM)

The North Star Metric is the single most important metric that best reflects a company’s long-term growth. It focuses teams on delivering value to customers and avoiding distractions.

Every business has many metrics, but the North Star Metric keeps everyone aligned. For Spotify, it could be 'time spent listening.' For Airbnb, it might be 'nights booked.'

This metric captures the core value users get, helping teams stay focused on what really drives growth and customer happiness.