What is the "Polaris indicator" +8 steps How to find the Polaris indicator?

If you want to tap the maximum growth potential, then you need to understand and use the Polaris indicator. For long-term development, any company needs to formulate a long-term development strategy.

"Growth hacker" usually refers to the rapid growth of a company's business. Of course, its core is that you should know how to retain customers for a long time, that is, to retain customers for a long time and change the strategic focus from marketing to a well-functioning machine.

Your Polaris indicator should be the core of your growth strategy.

Recently, I noticed at a customer's strategy seminar that the customer was still very unfamiliar with the term "Polaris indicator".

In this article, I will explain what Polaris metric is and how to find a powerful Polaris metric for your company, thus giving the whole company new attention and vitality.

What is the Polaris indicator? Polaris Index (NSM) is the key indicator used by the company for its growth. This figure can best reflect the value your company brings to customers. In addition, Polaris index provides guidance for your company's long-term growth and short-term growth.

Examples of well-known Polaris indicators are as follows:

Below, I list more examples of Polaris indicators. The idea behind Polaris measurement is that if your company brings more value to your customers, then your company will maintain positive growth. The assumption is that if your customers get a lot of value, they will stay longer, buy more products and recommend more friends to your company.

Therefore, if your NSM is growing, your business will grow in all aspects.

"Income" is a bad indicator of Polaris. Revenue is the price paid by customers, and Polaris index is the value that customers get at this price. The danger of turnover like NSM is that you are more concerned about squeezing as much money as possible from customers in the short term, while customers who really feel the value may pay more in the long run. On the contrary, the growth of Polaris index brings more benefits, which is such a causal relationship.

Polaris indicators can help your company in many ways:

What's the difference between your Polaris index and OMTM index? It is understandable that people often confuse "Polaris indicator" with "the only core indicator" OMTM! Even many famous blogs and companies have made this mistake.

The following are the differences between the definitions of "Polaris indicator" and "unique core indicator":

Therefore, you can see that there are four main differences between "important indicators" and "Polaris indicators":

A good Polaris indicator meets the following eight conditions, otherwise it may be wrong:

How to establish Polaris index in eight steps

I want you to start using the information I shared here easily and quickly. So I share some examples below to inspire you to choose the Polaris indicator.

What are some examples of Polaris indicators of large well-known companies?

Examples of Polaris indicators for e-commerce, platforms and B2B start-ups.

Facebook's Polaris metric is often confusing. From the beginning, Zuckerberg used "monthly active users" (MAU) as the indicator of Polaris. The reason is that Facebook is a multifunctional platform, and it is difficult for them to learn more about their Polaris metric.

People often misunderstand this point: Facebook's Polaris indicator is not "10 7 friends a day": this is their "Aha! Instantly, this is the moment when users see the added value of the platform ("Aha, now I understand why this is useful!") )), so it is likely that someone will retain customers for a long time. This is a good article about this confusion, "How Facebook's" 10 days of 7 friends "makes everyone confused about relevance and reasons".

Mayur Gupta, growth director of Spotify, said Spotify's "Polaris indicator" was "time spent".

What are the advantages of Spotify's NSM?

GO-JEK is a scooter platform in Indonesia. GO-JEK's Polaris measurement is "the number of trips started", because it perfectly contains the value provided by the platform to users: the scooter will always be provided to you. Gojack's Growth Story: The Secret Behind Our Super Growth In this article, the Gojek growth team explains how they deal with growth hackers.

For a long time, the "North Star" indicator of LinkedIn has been "the number of approvals given", because it proves that users have established contact, so users are unlikely to cancel their personal data (because it has high value), and the platform provides more insight for recruiters.

Unfortunately, it was soon discovered that the spokesperson was forged and NSM could not help the platform of daily activities. After Microsoft took over, LinkedIn took Facebook's NSM as an example and chose "monthly active users".

Amazon regards "number of purchases per month" as its Polaris indicator. This is a logical example of the e-commerce Polaris indicator.

AirBnB's Polaris indicator is "the number of nights booked", which is a good Polaris indicator for the platform because it perfectly combines the value of subscribers and lessors.

Slack's "Polaris" indicator is "number of emails sent" or "daily active users (DAU)", but online resources do not provide a clear answer.

Personally, I think "daily users" will be more suitable for messaging software, because the goal is not necessarily that people send a lot of messages, but to send them as effectively as possible. This may mean that you send very little information.

As a measure of Polaris, Quora has "the number of questions answered", which is very suitable for its mission of providing a global knowledge enjoyment platform. As this example shows, your NSM can also express your mission/vision as a company.

Uber's Polaris indicator is "cycling times per week", which corresponds to NSM； with Airbnb as a two-way platform; Your buyers and sellers must get value from your platform.

In an interview with Intercom's podcast, Kieran Flanagan, vice president of growth at Hubspot, said that Hubspot's Polaris indicator is "the number of active teams per week" because they pay more attention to teams than individuals.

Whatsapp's Polaris indicator is "the number of emails sent", which not only provides the number of active users, but also provides the right to speak directly according to the usage.

You are welcome to ask your questions, and we will serve you wholeheartedly. ?