Let’s talk product metrics—the numbers that help you figure out whether your product is winning or, well, not. As a product manager, you can’t just guess if users love your app or if your new feature is working. You need metrics to track how well your product is doing.

But what exactly are product metrics? And why does everyone keep talking about this magical thing called a North Star Metric? Don’t worry, we’re about to break it all down in a way that makes sense, even if you're just getting started in product management.

What Are Product Metrics?

Think of product metrics as the report card for your product. They’re the numbers and data points that tell you if your product is meeting its goals, making users happy, and growing. They help you answer important questions like:

• How many people are using my product?
• How often are they coming back?
• Are they completing key actions, like making a purchase or signing up?

Metrics let you see what’s working and what needs improvement. If your product were a game, metrics would be the scoreboard showing if you’re winning or losing.

What Is a North Star Metric?

Now, let’s talk about the North Star Metric. Just like the North Star guides sailors across the sea, this metric guides your entire product team toward a single goal. It’s the one key metric that reflects the value your product delivers to users.

Your North Star Metric should answer the question: What is the most important outcome our product should achieve?

Here’s the trick: it’s not about vanity metrics like the number of app downloads or website visits. It’s about measuring how your product is actually helping users and creating value. For example:

• For Spotify, the North Star Metric might be time spent listening to music, because that shows people are enjoying the app.
• For Airbnb, it could be nights booked, because that shows the platform is delivering its core value of connecting travellers with hosts.

How to Set Metrics for Your Product

Setting the right metrics for your product isn’t as hard as it sounds. You just need to focus on the goals that matter most to your users and your business. Here’s a simple guide to help you set the right metrics:

1. Identify Your Product’s Core Value

Start by asking yourself: What problem is my product solving? If you’re building an app for students to manage their study schedules, the core value is helping them stay organized and succeed academically. Your metrics should measure how well you’re delivering that value.

2. Break It Down Into Actionable Metrics

Now that you know the core value, think about how to measure it. Let’s say you’re managing a food delivery app. Some key metrics could be:

• Daily active users: How many people are using the app every day?
• Orders per user: Are people coming back and ordering regularly?
• Delivery time: How fast are orders being delivered?

These metrics give you a clear picture of how users are engaging with your product.

3. Choose Your North Star Metric

This is the big one—the metric that represents your product’s ultimate success. Using the food delivery app example, your North Star Metric might be the total number of successful orders, because it shows both user engagement and business growth.

4. Track and Adjust

Metrics aren’t set in stone. Once you’ve chosen your North Star Metric and supporting metrics, monitor them regularly. If your North Star Metric is lagging, dig into your other metrics to figure out why. Maybe your delivery times are too slow, or users aren’t finding the app easy to navigate.

5. Focus on the Right Numbers

Not all numbers are important. Avoid getting caught up in vanity metrics—those shiny numbers that look impressive but don’t actually tell you how your product is performing. For example, having 1 million downloads sounds great, but if no one’s using the app after they download it, that number doesn’t mean much.

Final Thoughts

Product metrics are your compass, guiding you toward building a product that delivers real value to users. And your North Star Metric is the brightest light, helping you stay focused on what matters most. Remember, you don’t need a million metrics—just a few key ones that tell you if your product is helping people and growing the way it should.

So, set your metrics, keep an eye on that North Star, and steer your product toward success!

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