Dave McClure’s Ignite Seattle talk on metrics is worth the five minute and 14 seconds it takes to watch.
“There are five steps…
Acquisition – where users come from. What are high volume channels, what are low cost channels, and what are best performing conversion channels?
Activation – a happy first experience.
Retention – they come back
Referral – they tell other people. Don’t try to do viral marketing campaigns until your product doesn’t suck.
Revenue – you make money”