Definition
A metric that changes before an outcome occurs, giving early warning of a future result such as churn or revenue growth.
Why it matters for growth
Leading indicators let a team react before a problem shows up in revenue, when it is still cheap and fast to fix.
Example
A drop in weekly logins during week two is a leading indicator of churn that will not show up in the churn rate for another month.
FAQ
- What is Leading Indicator?
- A metric that changes before an outcome occurs, giving early warning of a future result such as churn or revenue growth.
- Why does Leading Indicator matter for growth?
- Leading indicators let a team react before a problem shows up in revenue, when it is still cheap and fast to fix.
- What is an example of Leading Indicator?
- A drop in weekly logins during week two is a leading indicator of churn that will not show up in the churn rate for another month.