Success gets measured against goals set at the engagement's start. Lead generation campaigns measure by leads generated. Brand awareness campaigns measure by reach and recognition. Sales pipeline campaigns measure by conversion rates and deal value.
Most agencies track a mix of leading and lagging indicators. Understanding the difference matters for evaluating marketing effectiveness.
Leading indicators predict future success. They're activity-based metrics showing whether marketing is heading in the right direction before results materialise. Examples include: website traffic quality (not just volume), content engagement rates, email open and click rates, social media growth, inquiry rates, and sales pipeline velocity. These signal whether marketing efforts will likely produce results.
Lagging indicators measure outcomes that have already occurred. They confirm whether marketing delivered results but don't predict future performance. Examples include: closed deals, revenue generated, customer acquisition numbers, conversion rates, and return on investment. These prove success but appear after the fact.
Effective measurement requires both. Leading indicators allow course correction before campaigns fail. Lagging indicators prove whether strategies worked. Agencies reporting only lagging indicators cannot demonstrate what's working until results arrive. Agencies reporting only leading indicators might show impressive activity without business outcomes.
Typical monthly reporting includes agreed KPIs across both categories: traffic quality and inquiry rates (leading), alongside lead volume and conversion rates (lagging). Performance below targets triggers strategy adjustments. Successful tactics get scaled.
The problem arises when agencies report metrics disconnected from business goals, using vanity metrics that look impressive but don't correlate to revenue or growth.
