A lagging indicator is reflective whereas a leading indicator is forecasting.
Lagging indicators do not predict, they are a conclusion made based on statistics to find that a shift in the market has occurred.
They specifically help marketers understand the results of their marketing efforts. If you have high churn rates or low return on ad spend then you would need to adjust something in your marketing strategy.
Lagging indicators are a conclusion made based on statistics that help find if a shift in the market has occurred.
Lagging indicators:
- Unemployment rate
- Interest rates
- Employee satisfaction
- Profit
- Return on investment (ROI)
- Return on ad spend (ROAS)
- Customer retention rate (CRR)
- Economic measurements
- Gross domestic product (GDP)
- Consumer price index (CPI)
