A lagging indicator is a metric whose measurement and thus impact takes a long time. Often, lagging indicators most accurately assess the business impact that your team should achieve. It measures output from a system you can’t exercise direct control over. Besides, due to the longer time frame, lagging indicators are not a viable choice for team feedback on the effectiveness of the ongoing project. For instance, if you want to improve customer retention, you must track Customer Churn Rate. As the churn rate is slow to change, you take longer to show results.
