|Leading indicators||When to use|
|Positive feedback from qualitative user interviews||During early product concept validation (e.g. prototypes of the user experience) to guide product direction.|
When there are two or more possible versions of a product element (e.g., button placement on a mobile app, marketing content that drives call to action) and you want a statistically rich sample of customer feedback.
|Customer uptake from pilots||
When validating whether the product or service meets the needs of a specific customer segment. The early definition of a pilot should not include all the ‘bells and whistles’ of the full product features, instead it should focus on the key value proposition to the customer.
|Ratio of hypotheses proven correct/incorrect||To obtain a sense for whether the teams are validating the right opportunity. If the ratio is low (more hypotheses are proving incorrect) this should identify a change in approach, for example, is it time to redefine the value proposition? Look to a longer horizon of future value? (is the market ready for this type of innovation?), validate with a different customer segment?|
|Lagging indicators||When to use it|
|Profit||Evaluating the long-term commercial viability of a product|
|Revenue||Evaluating near-term commercial viability of a product|
|Market Share||Validating share of potential market opportunity|
|Net Promoter Score||Gauge loyalty of customers|
|Customer Lifetime value||Understanding the value a customers have brought to the organization during the relationship (measured by net profit for any given customer).|
Disclaimer: The statements and opinions expressed in this article are those of the author(s) and do not necessarily reflect the positions of Thoughtworks.