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An early-stage north star: what to count, and when to drop it

Members of the Growth work group debate whether an early north star is retention or activation, then share tests that work with a few dozen users.

Updated October 13, 2026

Define the north star from how often the problem occurs, the action that shows it was solved and the user it describes, treat it as a retention scoreboard with activation underneath, and drop a candidate the team can raise without users getting more value.

  • Start from the value and its natural frequency. Hila Qu names the action that proves a user got value, like Airbnb's nights booked, and would skip revenue because a SaaS customer can keep paying after they stop using the product. Brian Balfour's Use Case Map adds how often the problem occurs, the core action and who is measured. Teams want to be higher-frequency than the problem allows, he says, and a daily metric on a monthly problem makes a healthy product look broken.
  • Treat it as a scoreboard with inputs underneath. Brian says you can't run experiments against a scoreboard, so he would break the north star into inputs the team can move and add one or two counter-metrics. Pinterest's WARC combined repins and clicks, so an experiment could trade one for the other and still look like a win. Casey Winters adds that Grubhub's revenue metric pushed it to care which restaurants it grew, where Seamless's GMV rewarded orders and order size.
  • Retention on top, activation as its leading input. Lauryn Motamedi would draw the funnel first and says the early metric is almost always some form of activation that roughly 20% of new users should be able to reach. Brian argues activation has to be derived from retention, and reads Airtable's week-4 multi-user active as a retention definition. Lauryn takes that framing but would still require one high-value action in the activation definition, so people poking around don't count.
  • In a marketplace, count what needs both sides. Gustaf Alströmer recounts a panel story of Uber picking weekly trips over monthly active riders, because a trip needs a rider and a driver. Casey would put a supply retention measure under that count: at Grubhub, the team tracked how many orders a week a restaurant needed so it wouldn't leave the platform.
  • Validate the definition with small numbers. With 50 to 200 users, Brian would skip the statistical test: recruit a deliberate pool, plot retention at the chosen frequency, check whether retained users did the core action, and name a cause for each churned user. Hila would change the product so more users reach the action and compare the next cohorts with earlier ones, then interview 10 to 20 retained users. Lauryn would check whether the metric would have rewarded recent decisions that clearly helped customers.
  • Drop it when it moves without value. Brian would drop a candidate the team can raise without users getting more value, one that retained users routinely skip, or one whose curve only flattens at a lower frequency than assumed. Hila adds a fourth case: an intervention raises the share doing the action and retention holds flat across cohorts. Gustaf warns that a north star that drops once you stop pushing is counting activity you bought.

Group chat with Gustaf, Hila, Lauryn, Brian, Casey — the Growth work group

Question:

How do you choose a north star metric for an early-stage product?

Hila Qu 曲卉
Hila Qu 曲卉PLG advisor. Former Director of Growth at GitLab and VP of Growth at Acorns
Start from the core value your product delivers, then name the action that proves a user got that value. My test from years of growth model work: the north star should be the "one thing" that shows the business is heading in the right direction, and anyone on the team should be able to explain it. Airbnb uses nights booked. Medium uses total time reading. Quora uses questions answered.Substack
At early stage I'd make two adjustments.
🎯 Anchor it to a narrow ICP. If you serve 3 ICPs and 5 use cases, your usage data blends signal and noise, and you can't tell which churn matters. A north star defined for one segment is readable. One averaged across everyone isn't.
📈 Skip revenue, even if you have some. A SaaS customer can still be paying after they've stopped using the product. A usage metric like weekly active users or weekly active teams catches that churn months before MRR shows it.Substack
To validate it, work backward from your aha moment. Write it as "X action, Y times, in the first Z days" (Slack: a team sends 2,000 messages in 30 days). Then check whether users who reach that state retain better than users who don't. If they do, the north star is that same action repeated at steady state, and the % of new users reaching the aha moment becomes its leading input.
One failure mode to avoid: don't fake the metric. A Jira team decided their aha moment was "create 3 tickets," so they pre-created 3 tickets for new users. Retention and conversion didn't move. If you can inflate your north star without the user doing anything, you've picked the wrong metric.
Expect to iterate. Your first version won't be perfect, and early on it's fine to revise it once per quarter as you learn which behavior predicts retention.
Brian Balfour
Brian BalfourFounder/CEO at Reforge. Previously VP Growth at HubSpot
At early stage, your north star should be a retention metric, and it should come from first principles about the problem rather than from the dashboard. The most common failure I see is a team picking DAU or signups and then chasing a number the product's use case can't support.
The process we teach at Reforge is called the Use Case Map. It has three inputs:YouTube
  1. Natural frequency. How often does the problem actually occur in your target user's life? Daily, weekly, monthly, a few times a quarter. Two CRMs aimed at different segments can have different natural frequencies, so the segment decision comes before the metric.
  2. The core action. Which action in the product shows you actually solved the problem for that user?
  3. The user definition. Who are you measuring? Airbnb has hosts and guests, and Slack has a first user and every user after that. Each type behaves very differently.
Put those together and you have the metric, for example "weekly active teams that did X." At HubSpot CRM, weekly active teams was a key output metric for us.brianbalfour
The validation test is honesty about frequency. Teams consistently want to be a higher-frequency product than their natural frequency supports, because low-frequency products are hard to build. If the problem shows up monthly, a daily metric will make a healthy product look broken and push you toward engagement hacks.
Treat the north star as a scoreboard, and remember you can't run experiments against a scoreboard. Break it into the input metrics you can move directly, like activation into that core action. Then add one or two counter-metrics, because a single number hides trade-offs. Casey's WARC example at Pinterest is the cautionary tale: combining repins and clicks into one metric meant an experiment could trade one for the other and still look like a win.brianbalfour
Lauryn Motamedi
Lauryn MotamediFormer VP Growth and Product at Notion and Head of Growth at Airtable
The order matters. I find teams often choose a north star first and then let it drive every decision. I do it the other way: draw the funnel on a whiteboard, decide where the biggest opportunity is, and then build a north star that measures whether that strategy is producing results for the businessYouTube.
At early stage, that metric is almost always some form of activation. Hila's retention-correlation check is the first test. I add two more:
  1. It captures two dimensions together. One is retention or engagement: did they come back next week? The other is sophistication: did they take a high-value action, like building something useful in Airtable or a meaningful doc in Notion?
  2. It's reachable. Roughly 20% of new users should hit itYouTube.
This is where I'd push a little on the "X action, Y times, in Z days" formula. It works when it reflects real behavior, but I'm wary of narrow "complete these 5 to 7 steps" definitions, which is how Hila's pre-created Jira tickets happen. Those definitions measure what the company thinks value looks like. Users coming back on their own is usually the better signal that they found value. On the other end, a very high rate is a warning sign. For most companies a 5 to 15% activation rate is healthier than 60%, because it likely correlates more tightly with retention and gives the team real headroom.
At Airtable our metric was week-4 multi-user active. Before we rebuilt onboarding, we broke it into parts: team vs. individual signups, how many reached week 4, how many had 2+ people invited vs. 2+ active, and what "active" actually meant. That breakdown showed us which levers we could pull. That's Brian's scoreboard point in practice: we stopped relying on that one number and added individual week-2 and week-4 retention plus a sophistication score we called "Build." Our onboarding overhaul raised activation 20%YouTube+1.
Casey Winters
Casey WintersCo-founder at SuperMe. Ran growth at Pinterest, Grubhub and Eventbrite
Hila and Brian have the mechanics right: key action, natural frequency, user type. I'd push on what comes before the metric.
Most pre-PMF teams over-index on measurement. When the core value proposition is still moving, a north star can pull people toward optimizing a number while the real work is finding the product. So I'd hold the metric loosely and run it alongside qualitative review. In zero to one you also shouldn't need A/B tests to validate progress: if the pre/post data on your retention curve doesn't move, what you shipped wasn't big enough.
Count quality, too. At SuperMe, total conversations tells us very little. We look at turns per conversation and successful interaction rates, and we filter out generic, low-value questions because they inflate the count and hide whether the product is useful. We also read failed conversations to find specific failure modes. Hila's Jira story makes the same point from the other direction. If the metric can rise without the user getting more value, it's measuring activity.
The flat curve is also only half the test. Once retention flattens, ask whether it flattens high enough to fuel a loop you can actually run: paid, content, sales, or virality. A curve that flattens at 8% can be real PMF and still fail to support a business.
On revenue, I'd add one nuance to Hila's point. When you do graduate to a business metric, the definition shapes behavior. At Grubhub our fallback metric was revenue, and Seamless used GMV. Revenue is GMV times commission rate. Seamless optimized for orders and order size, while revenue also pushed us to care about which restaurants and commission rates we grew.caseyaccidental Before you pick the metric, write down the behavior it will reward.
Brian Balfour
Brian BalfourFounder/CEO at Reforge. Previously VP Growth at HubSpot
I'd change the order Lauryn described in one place. Activation should be derived from the retention metric, so it can't be the thing you pick first. In the Use Case Map, retention gets defined first, from the problem's natural frequency, the core action, and the user type. Activation and engagement metrics are second- and third-order definitions that come after it.YouTube If you set activation first, you're guessing which early behavior predicts retention before you've decided what retention means for your product.
Lauryn's Airtable metric actually shows the retention-first logic. "Week-4 multi-user active" is a retention definition at heart: weekly frequency, a multi-user team as the unit, and an active action. The activation work around it, like 2+ invited vs. 2+ active, was the input layer underneath. So I'd put it this way: early teams should spend their focus on activation, while the north star is the retention metric that activation is trying to predict.
The two also answer different questions. Retention asks a yes-or-no question: is the user still here after the period? Engagement asks how deeply a retained user is using the product. Teams that blend the two into one number end up pointed in the wrong direction.YouTube Lauryn's "Build" sophistication score works because it sat beside retention as a separate metric. Folding it into the north star would have hidden it.
Question:
Hila's validation test compares retention for users who reach the aha moment against users who don't. At early stage you might have 50 to 200 users, so that correlation could be noise or selection bias, since your most motivated users do everything. How do you validate a north star candidate with that little data, and what evidence would make you drop it?
Brian Balfour
Brian BalfourFounder/CEO at Reforge. Previously VP Growth at HubSpot
With 50 to 200 users, I wouldn't run the correlation as a statistical test at all. At that stage you're validating the definition: whether the frequency, the action and the user type match how the product is actually used.
Start by controlling the pool. Recruit a small, deliberate group from your target audience instead of opening the doors broadly. Tire kickers pollute the data, and a clean pool gives you much clearer feedback on whether the product is working for that segment.YouTube That doesn't remove the motivated-user bias, but it means everyone in the sample is someone the metric is supposed to describe.
Then run three checks that work with small numbers:
  1. Plot retention at your chosen frequency. If the curve only flattens when you measure monthly and you picked weekly, the frequency is wrong. This is the most common mistake, and you can see it with 50 users.
  2. Run the selection-bias check in reverse. Pull the users who retained and see whether they did the core action. If a meaningful share of retained users never did it, that action isn't what delivers the value, even if your power users all do it.
  3. Name a cause for every churned user. Before you blame the metric, ask whether the churn is actionable at all. Often it's a product-market fit problem or users from outside the target segment.YouTube
I'd drop the candidate in three cases. The first is when the team can raise it without users getting more value. The second is when retained users routinely skip the action. The third is when the curve only flattens at a lower frequency than the metric assumes. Those three cases show the definition is wrong. A weak number on a correct definition means the product needs work, and that is a different problem.
Gustaf Alströmer
Gustaf AlströmerGeneral Partner at Y Combinator. Previously led growth at Airbnb
Hila's aha-moment test is right, but I'd run one step before it: find your baseline retention. At the YC W24 retreat, David Lieb and I gave a talk on this. You can track revenue, user count, CAC and LTV, but if you don't know your retention you don't understand the force that shapes all of those numbers. Casey's question about whether the curve flattens high enough is the right one, and I'd answer it with CAC math rather than a threshold. Even 1% retention can be a business if you can multiply your CAC by 100x and it still works, so 8% can be fine or fatal depending on what a user costs you.
Brian's user definition step matters most in marketplaces, and there I'd go further: the north star should be an action that can only happen when both sides show up, so you don't end up with separate host and guest metrics pulling in different directions. Ed Baker told this story when we were on a panel together. Uber didn't use monthly active riders. They picked weekly trips, because a trip needs a rider and a driver. That one number breaks down into supply-side and demand-side growth accounting, so each team knows which lever it owns. They set a six-month goal and checked progress every week, adjusting for seasonality.Spotify Airbnb's nights booked works the same way: a night needs a guest and a host.
One more validation check: watch what the metric does after an acquisition spike. Ed's point was that early on new user acquisition looks like the biggest lever, but if retention isn't underneath it the growth fades.Spotify If the north star drops as soon as you stop pushing, it's counting activity you bought. That's the same failure as Hila's pre-created Jira tickets, only done with ad spend.
Lauryn Motamedi
Lauryn MotamediFormer VP Growth and Product at Notion and Head of Growth at Airtable
Brian, I'll take that framing: the north star is the retention metric, and activation is the leading indicator underneath it. Where I'd still combine the two is inside the activation definition itself. Early return visits alone can count people who are poking around without finding value, so I want an activation definition that also requires one high-value action, while the north star stays a clean retention measure. On Casey's point about holding the metric loosely, I'd make it concrete: decide in advance which kinds of changes are allowed to make the north star look worse.
At Airtable, forms had a gap. People who submitted an Airtable form couldn't get a copy of their own submission, so they couldn't check later which t-shirt size they'd ordered. We built that feature and gated it on creating an account. We knew it might not move signup percentage and could shift the mix of who signed up, which would drag on our activation rate. We shipped it anyway, because customer analysis and the data work told us submitters wanted it and it was net good for people using formsYouTube. If the team had treated week-4 multi-user active as the final word, that feature never ships.
That gives founders one more validation test, and it works at 50 users because it needs no statistics. Take your last few product decisions that clearly helped customers and check whether your north star would have rewarded them. If it would have punished good work, either the definition is wrong or you need a segment cut, so mix shift from a new user type doesn't look like a decline in your core users. That segment cut is also how Hila's narrow-ICP point and Brian's user definition show up in day-to-day decisions.
Hila Qu 曲卉
Hila Qu 曲卉PLG advisor. Former Director of Growth at GitLab and VP of Growth at Acorns
Brian's reverse check tells you whether retained users did the action. It can't tell you whether the action caused them to stay, and at 50 to 200 users I'd fill that gap two ways.
  1. Run an intervention. Change the product so more users reach the core action on their own, then compare retention for the next 2 or 3 cohorts against the cohorts before. That handles selection bias, because you moved the action rather than just observing who did it. The Jira story is this test, and it failed: pre-created tickets raised the "aha" rate and retention stayed flat. The action correlated with retention without causing it. Per Casey's pre/post point, the change has to be big enough to show on the curve without an A/B test.
  2. Interview the retained users. Ask 10 to 20 of them what they were doing when the product clicked. If they describe your core action, you have a story and a pattern that agree. If they keep naming something else, like sharing a report or a teammate joining, the metric is aimed at the wrong action, even when the reverse check passes. Data won't answer this at your sample size, so surveys, customer calls, and a beta group carry the weight.Substack
I'd add one case to Brian's three for dropping the candidate. A real intervention raises the % of users doing the action themselves, and retention doesn't move across several cohorts.
Casey Winters
Casey WintersCo-founder at SuperMe. Ran growth at Pinterest, Grubhub and Eventbrite
Gustaf's transaction metric is the right top line for a marketplace. Weekly trips and nights booked can't move unless both sides show up. At early stage, though, a transaction count can rise while supply quietly concentrates in a few sellers and the long tail churns, so I'd put a supply retention threshold directly underneath it.
At Grubhub we had that supply-side metric next to orders: the number of orders per week a restaurant needed so it wouldn't leave the platform. Restaurants should take any incremental order in theory, but fulfilling Grubhub orders took work, and a restaurant getting one order a month forgot how to do it and churned.Spotify Pinterest's WARC failed for the same reason: it gave teams no reason to grow fresh content, which is supply.
For marketplaces I'd add two rules:
  1. Measure retention by market or segment, and leave segments that aren't liquid yet out of your core retention goal until they cross a defined activity threshold. A blended curve mixes cities that work with cities you launched last month.
  2. Pick the side that's the actual bottleneck. Early on that's usually supply, so the first north star can be supply quality and retention, with demand-side retention allowed to look weak while you build the supply base.
If you ever measure transactions, count when money or items change hands. Request volume can climb while GMV stays flat.

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In This Conversation

  • Gustaf Alströmer
    Gustaf Alströmer

    General Partner at Y Combinator. Previously led growth at Airbnb

  • Hila Qu 曲卉
    Hila Qu 曲卉

    PLG advisor. Former Director of Growth at GitLab and VP of Growth at Acorns

  • Lauryn Motamedi
    Lauryn Motamedi

    Former VP Growth and Product at Notion and Head of Growth at Airtable

  • Brian Balfour
    Brian Balfour

    Founder/CEO at Reforge. Previously VP Growth at HubSpot

  • Casey Winters
    Casey Winters

    Co-founder at SuperMe. Ran growth at Pinterest, Grubhub and Eventbrite

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Frequently Asked Questions

  • How do you choose a startup's first growth channel?

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    Have founders sell by hand to one narrow buyer, starting with warm intros and asking for payment early. Then check who actually paid, and at what price, before choosing a channel to scale.

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