What term describes the primary metric for assessing user growth and engagement over time?

The term that describes the primary metric for assessing user growth and engagement over time is the North Star Metric. This concept refers to a key performance indicator that is not just a measure of general performance, but rather focuses on the core value that a product delivers to its customers. The North Star Metric helps guide a startup's growth strategy and aims to align the entire team around achieving long-term success.

In the context of startups, selecting a North Star Metric is crucial because it offers a clear and actionable way to track progress, enhance user engagement, and measure the impact on overall business success. This metric encapsulates the essence of user satisfaction and engagement, thereby fostering a deeper understanding of how well the product serves its users and how it grows over time.

While the other terms are relevant in different contexts—such as performance metrics that measure specific aspects of business activities, growth rates that quantify the increase in users or revenue, and engagement rates that assess how involved users are with a product—they do not encapsulate the broader, holistic view of success captured by a North Star Metric. The North Star Metric synthesizes various dimensions of growth and user interaction, making it a pivotal tool for startups aiming to create and sustain momentum in their early stages.