Editor's note: Andrew Mager is reporting from the Future of Web Apps (FOWA 2010) conference, held in Miami from February 22 to 24. Click here to read all of his coverage.
Neil Patel from KISSmetrics is on top of his game when it comes to analytics. Here are five metrics you ought to be tracking with your web app:
Revenue per user
Conversion rates are great to track, but you should also track revenue per user. Even with a lower conversion rate, you can still make more money.
For example, doubling the price caused a 10% decrease in conversion rates, but higher revenue per user.
If your users are engaged, they are more likely to pay or invite their friends. How do you do it though? Track how far people are getting, how often they are coming back, and what they are doing on your web app.
Clicks, actions, links; track em. It's the best way to find out if a feature set is working for you. You should track every button on your media player too. Track the pause and play button clicks.
Real conversion rates
Free users can convert into paid users, so you need to track where they came from. Don't just look at the referring site, go a few levels deep.
Test, test, test
Don't base your company's decisions off of someone else's data. Everyone has a different way of doing things. What works for them might not work for you. Conversely, share what you have learned on your company's data blog.