In sales, we love data. Numbers help us measure success, set targets, and learn from the past. But not all metrics are equal, and knowing the difference between lead and lag indicators can be the difference between a high-performing team and one that misses the mark.
Lag indicators are the metrics we’re used to discussing at the end of a month or quarter: revenue generated, deals closed, quota attained, win rates. They’re the end result — an outcome of everything that’s happened up to that point. Lag indicators are important because they tell us where we’ve been, but they don’t help us influence where we’re going.
Lead indicators, on the other hand, are those day-to-day actions and activities that directly impact future outcomes. Think of them as the building blocks of success: calls made, meetings booked, follow-ups sent, or new opportunities added to the pipeline. Lead indicators are proactive measures, giving us a sense of control over our sales process and allowing us to course-correct early. They enable us to stay on track and adjust behaviors long before we see the effects in our revenue numbers.
If we think of a sales team like a pilot flying a plane, lead indicators are our instruments and navigational tools, while lag indicators are the journey log. If the instruments show we're drifting off course, we can make adjustments — before it's too late. A focus on lead indicators provides early warnings, giving us the ability to prevent unfavourable outcomes before they materialise.
The best sales teams are the ones that have clear, well-defined lead indicators that align with their goals. They know exactly which activities drive success, and they focus on executing those actions consistently. This means not just monitoring the number of calls or emails but ensuring those activities are of high quality — tailored messaging, value-driven conversations, and targeted outreach.
As sales leaders, our role is to help our teams find clarity on what matters most. We need to define the lead indicators that are critical to hitting our targets, build a rhythm of accountability around them, and celebrate the wins that come from those daily efforts. By shifting our focus from simply tracking results to proactively managing the actions that drive those results, we empower our teams to thrive.
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