THE SAAS GLOSSARY

North Star metric: Measuring what matters for your startup

Updated: May 29th, 2025
North Star metric: Measuring what matters for your startup

Contents

What is a North Star metric?

A North Star metric (NSM) is the one metric that's most predictive of a startup's long-term success. Everything in the startup should be done to move that single metric forward.

The NSM should (A) keep people in the company focused on what matters, and (B) align their actions with moving the company forward towards its vision.

Examples of North star metrics for SaaS companies

SaaS company

North Star metric

Spotify

Time spent listening

Univid

Number of webinars

HubSpot

Number of weekly active teams