Why 1 Metric Matters

It feels like the phrase “data driven” is the new “synergy” when it comes to growth. We are not going to say being data driven is a bad thing. We have built our business on using data to make the right decision to grow many different businesses in different industries.

However, there is such a thing as too much data and data for the sake of data.

That is why every company should have 1 metric that represents the health of an organization..

Sometimes referred to as the”North Star Metric,” many companies completely ignore this rule in favor of tracking vanity metrics or collecting data for the sake of data.


How to Pick Your North Star Metric:


Each business has its own “North Star Metric.” So, it is important that you choose something that represents success for your product/service.  

With SAAS companies, we are too quick to pick the“Number of Users” as the North Star Metric. Which sounds obvious, but what if 95% of your users login once and never return?

Simply tracking “Number of Users”, will not tell you if people are returning or if you are really growing.

Get specific with the behavior you expect to see from people. If you expect people to use your SAAS product daily, perhaps a better metric would be “the number of people who have signed in for at least 10 consecutive working days.”

If we saw growth in that metric, our hypothetical company could be certain that they are growing. Whereas, static or falling numbers show us that “churn” is a big problem.

If you are unsure on how you could track a metric like, The number of people who have signed in for at least 10 consecutive working days, ask your developer and they should be able to setup the correct reporting for you.


Remember, when choosing your North Star Metric:

  • It must represent the overall health of your business.
  • Think of specific behaviors or actions that would constitute success for your product or service.
  • Ask your developer to ensure that the correct data logging is taking place.


By Dan Wheatley, Co-Founder

CEO/Co-Founder of Straight Talk Consulting, a business consultancy that gets our hands dirty. We work with organisations to achieve product market fit before transitioning into scalable and repeatable growth

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