What is a Leading Indicator?

A leading indicator is a metric used to predict future outcomes or trends, offering insights into potential changes before they occur. It provides early signals about changes in performance or behavior before they occur. Examples include customer inquiries, website traffic, or sales pipeline growth.

The leading indicators help businesses anticipate shifts in performance and take proactive actions to influence results. They are important because they help businesses forecast future results, allowing them to take proactive actions. By monitoring these indicators, companies can make adjustments to their strategies and potentially avoid negative outcomes or capitalize on emerging opportunities.