Definition
A metric that reflects the outcome of past actions, such as revenue or churn, and only changes after the underlying cause has already occurred.
Why it matters for growth
Lagging indicators confirm whether a strategy worked, but by the time they move, the window to make a cheap correction has usually passed.
Example
Quarterly revenue is a lagging indicator of the sales and product decisions made months earlier.
FAQ
- What is Lagging Indicator?
- A metric that reflects the outcome of past actions, such as revenue or churn, and only changes after the underlying cause has already occurred.
- Why does Lagging Indicator matter for growth?
- Lagging indicators confirm whether a strategy worked, but by the time they move, the window to make a cheap correction has usually passed.
- What is an example of Lagging Indicator?
- Quarterly revenue is a lagging indicator of the sales and product decisions made months earlier.