A lagging indicator tells you what already happened. Revenue. Churn. Monthly active users. By the time it moves, the cause is weeks in the past.
A leading indicator is the early signal that predicts it. For a habit app, “habits completed in week one” is a leading indicator for “still subscribed in month three.”
One is a rear-view mirror. The other is a headlight.
Why this matters for you: if you only watch lagging metrics, you’re always reacting late. If you can name the leading indicator for your product, you can act while there’s still time to change the outcome.
Try this: pick any product you use. What’s the one early behavior that probably predicts whether someone sticks around? That’s its leading indicator. Comment yours, and I’ll react to a few.