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”