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
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.
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Growth
Frequently Asked Questions
How do you choose a startup's first growth channel?
Pick a channel the product can feed, test it with one narrow segment on a set budget and date, and judge it by how many users reach value and come back.
What should a founder check first when growth stalls?
That the data is right, then cohort retention split by segment and channel. If curves trend toward zero in every slice, fix the product before spending more on acquisition.
How do you tell a growth problem from a product problem?
Bring in a small batch of users from one clean channel and read their cohorts. If they activate and return but there aren't many, it's distribution. If they leave within the first week, product owns the fix.
What moves activation in a new user's first few days?
Find where users drop, then match the lever: pre-answer setup for users who stall, make the first action an earned win for users who feel nothing, and bring back users who got value.
Who should own acquisition and retention, growth or marketing?
Most members would split near signup, with marketing on channels and the promise and growth on the path to first value. The line still has to follow the growth model, and both teams judge channels by the cohorts that stay.
Should a growth team report to product or marketing?
Wherever the biggest lever is. For most product-led companies that is product, next to core rather than inside it, and once paid spend matters too, one growth leader owns acquisition and activation.
Which lifecycle emails should a team build first?
The ones aimed at the steepest drop on the retention curve, usually the activation email. Depth and renewal emails come next, and win-back to fully churned users comes last.
How do you bring back signups who went quiet?
Watch a few try the next step and fix where they stall, then test the message with and without the fix against a holdout, and count retained use rather than opens.
When should a product-led company add sales?
A founder can start working accounts where usage is spreading and retaining. A sales team follows once deals need security reviews and procurement that self-serve can't handle.
Which self-serve accounts should a sales rep call?
Ones big enough to pay for a rep's time, with use spreading inside the company and a need self-serve can't meet. Hold some flagged accounts back to check that sales added value.
Which early action should count as activation?
Use two measures: an early action onboarding can move as the team's operating metric, and a later repeat action to check that those users came back. Randomize the onboarding change so motivated users don't skew the read.
Should a new marketplace build supply or demand first?
Whichever side gets a buyer to a completed transaction while giving the supplier a reason to stay. Start in one narrow market and track matches, supplier earnings and repeat buyers.
When can a marketplace copy its first city?
When service holds after subsidies come down, a new manager can run the launch playbook without the founders, and the team knows whether the channel behind market one's demand starts warm or cold in the next market.
How should you test a landing page?
Show visitors what they searched for before the ask, start with the page's first clear funnel drop, and count activated users per visitor alongside signups.
Should a startup with a few dozen users stop acquisition?
Stop broad acquisition but keep a small hand-picked flow from one segment, onboard those users live, and count only return visits nobody prompted.
How does a B2B startup find its first paying customers?
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.


