Learn vocabulary for discussing growth metrics: north star metric, guardrail metric, CTR lift, leading vs lagging indicators, and counter-metrics.
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What is a 'north star metric'?
A north star metric (NSM) is the one metric that best reflects whether the product is delivering value — for example, 'weekly active users who complete a booking' for a travel app. It guides prioritisation and experiment goals across teams.
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What is a 'guardrail metric'?
Guardrail metrics protect important product health signals during experimentation. Even if a treatment improves the primary metric, the experiment is considered a failure if a guardrail metric moves significantly in the wrong direction.
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What does 'we saw a 12% lift in CTR' mean?
A 'lift' refers to the relative improvement of a metric in the treatment group compared to the control. A 12% lift in CTR means: if the control had 10% CTR, the treatment had approximately 11.2% CTR.
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What is a 'leading indicator' versus a 'lagging indicator'?
Leading indicators are forward-looking signals that predict what will happen — they move before the outcome does. Lagging indicators confirm what has already happened. Both are useful: leading indicators allow faster course-correction, while lagging indicators confirm true business impact.
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What is a 'counter-metric' in experiment analysis?
Counter-metrics catch cases where a treatment improves the target metric by degrading something else. For example, if a new recommendation algorithm increases CTR but counter-metrics show decreased time-on-site and lower return rate, the 'improvement' may actually be harmful.