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How does a leading indicator differ from a lagging indicator?
Metrics are important in many ways ... but which ones are leading or lagging indicators ... and which ones really tell you what's working and what's not?
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1 Answer
Having a good handle on leading indicators for your category can help with forecasting the direction and intensity of changes in demand. This will help you to be proactive in your programs and campaigns, resource allocation and incentive programs.
A lagging indicator enables you to prove or disprove your strategy which you put into place after analyzing your leading indicators.
Some people find it wise to wait for the lagging indicators to kick in before they take action.
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