Affihub’s North Star Metric

Affihub’s North Star Metric

Affihub’s North Star Metric

Fecha: Octubre 4, 2024

Producido por: Rashid Azarang, Fundador & CEO de Affihub

Introduction

At Affihub, our mission is to empower communities by fostering genuine connections through shared activities and passions. To ensure we are on the right path toward achieving our mission and to guide our growth strategies, we have identified a key North Star Metric along with supporting metrics. These metrics help us measure our success in delivering value to our users and achieving product-market fit.

Affihub’s North Star Metric:

The “Magic Moment”

Definition

  • Magic Moment: The percentage of new users who complete a repeated transaction within their first 14 days on the platform.

Why It Matters

  • Early Engagement:
    • Indicates strong initial user engagement and satisfaction.
    • Users who engage early are more likely to become active, long-term users.
  • Retention Predictor:
    • Early repeated transactions suggest higher likelihood of user retention.
    • Helps predict future growth based on current user behavior.
  • Organic Growth Driver:
    • Satisfied users are more likely to recommend Affihub to others.
    • Drives word-of-mouth referrals, reducing customer acquisition costs.

Goals

  • Target Rate: Achieve a Magic Moment rate of at least 30% among new users.
  • Continuous Improvement: Increase this rate over time through platform enhancements.

Supporting Metrics

To complement our North Star Metric, we track several Key Performance Indicators (KPIs) that provide additional insights into our platform’s performance.

  1. Quantity Metric: Number of Services Booked
  • Definition:
    • Total number of services booked on the platform, including initial and repeated transactions.
  • Why It Matters:
    • Reflects overall platform adoption and usage intensity.
    • Helps assess market penetration and growth potential.
  • Goals:
    • Consistent Growth: Achieve month-over-month growth in total bookings.
    • Repeat Bookings: Monitor the proportion of repeated transactions to total bookings.
  1. 2. Quality Metric: Net Promoter Score (NPS)
  • Definition:
    • Measures customer satisfaction and loyalty based on the likelihood of users recommending Affihub to others.
  • Why It Matters:
    • High NPS indicates strong user advocacy and satisfaction.
    • Correlates with organic growth through referrals.
  • Goals:
    • Target NPS: Maintain an NPS of 50 or higher.
    • Monitor Trends: Regularly assess and address factors affecting NPS.
  1. Efficiency Metric: Customer Support Tickets per Reservation
  • Definition:
    • The ratio of customer support tickets submitted to the number of reservations made.
  • Why It Matters:
    • Indicates platform usability and operational efficiency.
    • A lower ratio suggests a smoother user experience.
  • Goals:
    • Decrease Over Time: Reduce support tickets per reservation as the platform improves.
    • Identify Common Issues: Use data to proactively address frequent user problems.
  1. Engagement Metrics
  • Event Creation Rate:
    • Definition: Frequency at which organizers create events on the platform.
    • Goal: Increase the number of active organizers and events.
  • Participant Engagement Rate:
    • Definition: Level of user participation in events and activities.
    • Goal: Boost attendance and interaction rates among users.
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Practical Implementation