Growth metrics and north star metric in Digital Marketing - Cheat Sheet & Quick Revision

Recall & Review

beginner

What are growth metrics in digital marketing?

Growth metrics are key numbers that show how well a business is growing. They help track progress in areas like user acquisition, engagement, and revenue.

beginner

Define the North Star Metric.

The North Star Metric is the single most important number that reflects the core value a product delivers to customers. It guides a company's growth efforts.

intermediate

Give an example of a North Star Metric for a streaming service.

An example is 'Total hours watched per month' because it shows how much value users get from the service.

intermediate

Why is it important to focus on a North Star Metric?

Focusing on one key metric helps teams align their work, prioritize efforts, and measure true impact on customer value and business growth.

beginner

Name three common growth metrics used by digital businesses.

Common growth metrics include: 1) Customer Acquisition Cost (CAC), 2) Monthly Active Users (MAU), 3) Customer Lifetime Value (CLV).

What does the North Star Metric primarily represent?

A The number of social media followers

B The total number of employees

C The company’s annual revenue

D The main value a product delivers to customers

The North Star Metric reflects the core value the product provides to its users, guiding growth efforts.

Which of these is NOT typically a growth metric?

A Monthly Active Users

B Customer Acquisition Cost

C Employee satisfaction score

D Customer Lifetime Value

Employee satisfaction is important but not a direct growth metric for business performance.

Why should a company focus on one North Star Metric?

A To align efforts and measure impact clearly

B To confuse the team

C To ignore other important data

D To increase social media posts

Focusing on one key metric helps teams work together and understand what drives growth.

Which metric would best measure user engagement for a mobile app?

A Monthly Active Users

B Number of office locations

C Annual profit

D Number of job applicants

Monthly Active Users shows how many people use the app regularly, indicating engagement.

What does Customer Acquisition Cost (CAC) measure?

A Number of products sold

B How much it costs to get a new customer

C Total revenue from all customers

D How many customers leave each month

CAC measures the average cost spent to acquire one new customer.

Explain what growth metrics are and why they matter for a business.

Think about numbers that show how a business is doing over time.

Describe the North Star Metric and how it helps a company grow.

It's the one key number that guides all growth activities.