Pick a North Star metric

To: CEO & Growth Lead From: Head of Product, Simmer Date: October 24, 2023 Subject: Recommendation: Our North Star Metric, Inputs, and Guardrails

Team, a great debate highlights our current tension: the CEO wants revenue (MRR), while the Growth lead wants reach (MAU).

If we choose MRR, we risk ignoring top-of-funnel health. If we choose MAU, we risk celebrating vanity metrics—as proved by last year’s notification test, where a 6% bump in MAU doubled uninstalls because those users didn't actually find value.

My recommendation is to pick a hybrid North Star: Weekly Active Subscribers (WAS), or more specifically, Paid Users Who Cook Weekly.

However, since a single metric rarely satisfies executive reporting, MRR should remain our ultimate business North Star, but Product Value Realization (Weekly Actives who Cook) must be the operational North Star that guides day-to-day product and growth decisions. MRR is the lagging reward; cooking engagement is the leading engine. Here is why, along with our inputs and guardrails.

Why This North Star Works

Our data reveals a stark truth: 68% of our 2.1M MAUs are "browse-only" users with a catastrophic 4-49% retention rate. MAU rewards us for acquiring transient browsers. Meanwhile, users who experience core value—using Cook Mode—exhibit a stellar 61% six-month retention rate, and 82% of our subscribers cook at least three recipes in their first two weeks before paying.

If we optimize for Weekly Active Cookers, we bridge both worlds: we drive the habit loops that naturally convert free users to Simmer Plus, which directly compounds our $840k MRR, while ignoring empty traffic that drains server costs and drives uninstalls.

Three Input Metrics Teams Can Own

To move our North Star, different pods will own specific, actionable input metrics:

1. Activation Velocity (Growth & Onboarding Pod): The percentage of new signups who complete at least one recipe in Cook Mode within their first 7 days. (Tied to the 82% subscriber conversion rule).
2. Core Habit Frequency (Engagement Pod): The average number of Cook Mode completions per active user per week. (Tied to the 61% retention milestone).
3. Feature Expansion (Core Product Pod): The percentage of weekly actives utilizing meal-planning features. (Currently a low 7%, representing massive upside for long-term retention).

Guardrails to Prevent Gaming

Metrics are easily corrupted if incentives misalign. To ensure we don’t repeat the ghost of last year’s push-notification debacle, we will institute three hard guardrails:

• The Uninstall Rate Cap: If marketing or growth initiatives drive MAU/signups up, but the monthly uninstall rate exceeds 2% of our active base, campaigns are automatically paused.
• The "No Empty Calories" Rule for Growth: Growth experiments cannot be measured solely by acquisition or click-through rates. An experiment is deemed a failure if it increases top-of-funnel signups without a corresponding lift in Day-7 Cook Mode completions.
• Subscription Quality (LTV/Churn Check): To prevent the sales team or pricing experiments from pushing low-intent, high-churn subscriptions just to spike short-term MRR, we will track 90-day subscriber retention. If a cohort churns above baseline, the acquisition channel or incentive driving it is depreciated.

By anchoring on users who actually cook, we align the CEO’s revenue goals with the Growth lead's engagement goals, turning casual browsers into loyal, paying home cooks.