Startup Metrics
North Star metrics, startup KPIs, and growth
Startup Metrics
Metrics that matter for startups: what to track, how to define them, and how to use them.
North Star metric
A North Star metric is the single best measure of value delivered to customers. It should:
- Reflect real value (not vanity)
- Be actionable (you can influence it)
- Be understandable across the company
Examples: weekly active users, revenue per user, retention rate, or activation rate.
Key startup metrics
| Metric | What it measures |
|---|---|
| Activation | % of signups who reach a meaningful first action |
| Retention | % of users who come back over time (D1, D7, D30) |
| Revenue | MRR, ARR, ARPU, LTV |
| Cohort behavior | How groups behave over time |
| Funnel conversion | Drop-off between stages |
Cohort analysis
Cohort analysis groups users by when they started (e.g. signup week) and tracks their behavior over time. It answers:
- Do newer cohorts retain better or worse?
- When does churn typically happen?
- Is the product improving over time?
Pirate metrics (AARRR)
- Acquisition — How do users find you?
- Activation — Do they have a good first experience?
- Retention — Do they come back?
- Referral — Do they invite others?
- Revenue — Do they pay?
Use these as a lens to find where to focus next.