Product analytics is crucial for businesses looking to measure KPIs and discover growth and optimization insights. The process involves defining key metrics, collecting data through a tracking plan, validating the data, and starting analysis from the big picture. Businesses should focus on understanding their customer journey and identifying touchpoints where users interact with their product or business. Key metrics include acquisition, activation, retention, revenue, and referral. A reliable framework for data analysis is essential to trust the insights gained from product analytics implementation.