Which of the following is an example of a lagging indicator?

A lagging indicator is a metric that reflects outcomes or results after an event has occurred, providing insights into the effectiveness of past actions. Customer retention rates serve as a clear example of a lagging indicator because they measure how well a company is able to keep its customers over a certain period. This metric indicates the success of previous strategies related to customer satisfaction and loyalty, highlighting the impact of past performance rather than ongoing processes.

In contrast, activities that generate reports are process-oriented and focus on information that is available now or in real-time, rather than the end results. Team collaboration efforts also pertain to ongoing behaviors and practices meant to enhance teamwork, rather than measuring past outcomes. Daily support ticket resolutions signify immediate actions taken to resolve issues and do not consider long-term outcomes or trends. Thus, customer retention rates clearly stand out as the only option linked to past performance measures, capturing the essence of a lagging indicator.