All concepts

Defining a Metric

Three teams report "active users" and get three numbers. None of them is wrong; there was never one definition.

Metrics & KPIs · Beginner · ~5 min

In plain English

Three people count the crowd at a party. One counts everyone who came, one counts who's still there, one counts who bought a drink. None is wrong; nobody agreed the question.

Why it's worth your time

Undefined metrics turn every meeting into a reconciliation exercise instead of a decision.

If you remember three things

  • A metric is a contract: event, population, window, dedup, exclusions, owner
  • Implement once in the modelling layer; dashboards reference, never re-derive
  • Pair every headline metric with a guardrail against the cheap way to move it

Overview

A metric is not a number, it is a written contract: the event that counts, the population it applies to, the time window, the deduplication rule, and the exclusions. Without that written down, every team reimplements it slightly differently and the organisation spends its meetings reconciling numbers instead of acting on them. The discipline is boring and it is the highest-leverage thing an analytics function does — one definition, implemented once in the modelling layer, referenced everywhere, with a named owner who can change it.

In an interview

Define a metric as a contract: the precise event, the population, the window, the dedup rule, and the exclusions — plus an owner. Implement it once in the semantic or modelling layer so every dashboard references the same logic. A good metric also has to be sensitive enough to move within a decision cycle and hard to game.

Production defaults

Location
one definition in the semantic or dbt layer, linked from every chart
Sensitivity
must be able to move within your decision cycle, or it can't guide anything
Versioning
on change, restate history and publish both series through a transition

What breaks

  • Two dashboards disagree — The metric is implemented twice. Move it into one model and point both at it.
  • The metric went up and nothing improved — It was gameable. Add the guardrail that catches the shortcut.

Watch it explained

How to Set a Great North Star Metric — Exponent, 5:26

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