What is the difference between a North Star Metric and a KPI?
A North Star is the outcome metric a product or product area chooses to anchor around delivered customer value. KPIs are the broader set of outcome, driver, diagnostic and guardrail measures used to operate the business. This tool focuses on choosing and defining the anchor; the KPI Tree Builder owns the wider metric system.
Does every company need exactly one North Star Metric?
Use one North Star as a default discipline for one coherent product and customer value system. Distinct products, lines of business or customer bases can justify separate North Stars. If your candidate set mixes unrelated value motions, narrow the scope before forcing a single answer.
Are DAU or MAU always bad North Star Metrics?
No metric label is universally good or bad. DAU or MAU is weak when “active” only means presence and can rise without customer value. An activity metric becomes more defensible when the qualifying activity is a precise value event or threshold that reflects what the customer came to achieve.
Can revenue or GMV be a North Star Metric?
Revenue is often better kept as a lagging business outcome, but transactional products can have financial-looking value-exchange metrics such as GMV. The question is not whether the label contains money; it is whether the contract represents delivered customer value and the trade-offs are protected with appropriate guardrails.
How many input metrics should I use?
Start with a small set of influential, complementary drivers that teams can act on and explain. Three to five can be a useful workshop prompt, not a data-structure rule. A coherent system with two drivers can be valid; a system with six can also be valid if the first-level relationships remain decision-useful.
What gets sent to the KPI Tree Builder?
The selected North Star contract, user-defined input hypotheses and guardrails are exported in a KPI Tree v2-compatible graph. Inputs use influence relationships with evidence status and never become additive or multiplicative formulas simply because they exist. The KPI Tree Builder then owns deeper decomposition, formulas, diagnostics and scenarios.
What is a counter-metric, and is it the same as a guardrail?
A counter-metric is any measure you watch so that optimizing the North Star cannot quietly make something important worse, quality, trust, cost-to-serve, or the health of the other side of a marketplace. In this tool every counter-metric is recorded as a guardrail: it keeps its own definition, direction and owner, and it sits beside the North Star rather than being averaged into it.
North Star vs activation metric, which one do I need?
An activation metric measures whether a new customer reaches first value; a North Star measures repeated value across the customer base you intend to serve. Activation can be a leading input or a diagnostic under the North Star, but optimizing activation alone can fill the top of the funnel while repeat value stalls. Keep them as separate contracts with an explicit hypothesized link.
Can the North Star change, and when should we revisit it?
Yes. Strategy shifts, new primary segments, a changed value event, observed gaming, a weakened business link, a deteriorating guardrail, or a redefined metric are all legitimate revisit triggers. Record one trigger when you decide so the metric is stable by default but never frozen by accident. Changing the definition without versioning it breaks trend comparability, so keep the exact contract with every export.
Does CraftUp store my internal metrics or strategy notes?
No. Your metric names, definitions, baselines, targets and rationale stay in this browser (localStorage) or travel inside a share link you explicitly copy. Analytics events carry only structural counts, candidates, inputs, guardrails, finding counts, never your metric text. Anyone with a share link can read the brief it contains, so avoid putting confidential targets in shared links.