North Star Metric:

• Is a single metric. The goal is to create focus.
• Is easy to understand, enabling everyone to speak the same language.
• Is customer-centric. Reflects how customers get value from the product.
• Ideally ensures the value is sustainable, typically by forming habits.
• Represents your progress toward vision / mission, fostering alignment among your teams and inspiring them to move in the same direction.
• Is quantitative. It relies on numbers, not opinions.
• Is actionable. Whether it increases or decreases, you will take action based on it. Otherwise, what's the point of tracking it?
• Serves as a leading indicator of your long-term business success.

A metric which focuses on business value, like number of paid subscribers, MRR or LTV/CAC would NOT be a good North Star because it does not represent the value derived by customers.

See:

*https://www.productcompass.pm/p/the-north-star-framework-101*