Four Sequential North Star Metrics for PLG
Two interesting observations surfaced with regards to the metrics focus of the growth team.
First, high performing growth teams focused on a single metric at a time, which they often referred to as the North Star Metric. Second, the North Star Metric evolved as the venture scaled. The sequence through which the metric evolved is illustrated and described below.
- North Star Metric #1: Establish Flow of Free Users for Experimentation (i.e. new users per day)
- North Star Metric #2: Prove Free User Retention (i.e. New User->WAU%)
- North Star Metric #3: Prove Scalable Quality User Acquisition (i.e. Cost per Quality User)
- North Star Metric #4: Prove Monetization (i.e. Quality User->Paid User% AND ACV)
[Link below for full breakdown]
Most relevant during:
PMF phase
GTM Fit phase
Scale phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
