What is a lagging indicator of the customer achieving the value proposition?
What is a lagging indicator of the customer achieving the value proposition?
A lagging indicator reflects past performance and indicates outcomes that have already occurred. Contract renewal is a lagging indicator because it demonstrates that the customer has received sufficient value from the product or service to commit to another term. This decision is based on the customer’s past experience and the benefits they have perceived, thereby confirming that the value proposition has been achieved.
B. contract renewal
Contract renewal (B) is a lagging indicator because it shows whether the customer achieved enough value from the solution to continue using it beyond the initial contract period. By renewing, the customer is indicating that past performance met or exceeded expectations.