Leading Indicator
A metric that predicts future results, like sign-ups or qualified leads, as opposed to a lagging indicator that reports what already happened.
Why it matters
Leading indicators let you steer before results land, giving time to react. Building your dashboard around them, not just revenue, is the difference between driving forward and looking in the rear-view mirror.
For example
New trial signups are a leading indicator: a dip this week warns of a revenue dip next quarter, while there is still time to react.
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Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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