How to Set Up Product Metrics in Amplitude
Most product teams instrument analytics reactively: something looks off, they scramble to add tracking, and realize they do not have the historical data to answer the question. Setting up Amplitude properly from the start means you have the data when you need it, not two weeks after someone asks the question. The investment in upfront instrumentation design pays compounding returns as your product matures.
This guide covers the PM-side of Amplitude setup: defining the event taxonomy, configuring key charts for activation and retention, building funnels that match your product flow, and creating a dashboard your team will actually check weekly. You will work with engineering on implementation, but the event design and dashboard creation are squarely in your domain.
Step-by-step guide
Define your event taxonomy before instrumenting anything
Create a spreadsheet or Notion doc listing every event you want to track, grouped by user lifecycle stage: Acquisition, Activation, Engagement, Retention, and Revenue. For each event, define the event name (verb.noun format like page.viewed, feature.used), the properties it carries, and the trigger condition. This taxonomy document becomes the contract between product and engineering. Without it, you end up with inconsistent naming and duplicate events.
- List events grouped by lifecycle stage: Acquisition, Activation, Engagement, Retention, Revenue
- Define event names in consistent verb.noun format
- Document event properties and trigger conditions for each event
Configure your Amplitude project and data governance settings
Create an Amplitude project for your product. Under Data > Govern, configure your taxonomy by creating event and property categories. Enable block list rules for events that do not match your naming convention to prevent engineering from sending unplanned events to production. Set up user properties for your key segmentation dimensions: plan tier, signup source, role, and company size. These user properties will power every analysis you build.
- Create the project and set up Govern rules matching your naming convention
- Define user properties for plan tier, role, signup source, and company size
- Enable taxonomy enforcement to block non-conforming events
Build your activation funnel
In Amplitude's Funnel Analysis view, create a funnel representing your activation flow. This typically starts with account.created and ends with your activation event (the moment a user gets value for the first time). Add each intermediate step. Set the conversion window to match your expected time-to-value (7 days for most B2B products). Save this chart and pin it to your main dashboard. This is the single most important chart for a growth-stage product.
- Define your activation event (the moment of first value delivery)
- Build the funnel from signup through each step to activation
- Set the conversion window and save to your main dashboard
Set up retention analysis
Create a Retention Analysis chart using your core engagement event (the action that defines an active user). Choose between N-Day Retention (did they come back on exactly day N) and Unbounded Retention (did they come back on day N or later) based on your product's usage pattern. For daily-use products, N-Day is more informative; for weekly-use products, use Unbounded with weekly brackets. Set your retention period to 8 weeks to see the full curve.
- Identify your core engagement event that defines an active user
- Choose N-Day or Unbounded retention based on your product's natural usage frequency
- Set the retention period to 8 weeks and segment by signup cohort
Create engagement and feature adoption charts
Build an Event Segmentation chart showing weekly active users (WAU) of your core features. Group by the feature property so you can see which features drive engagement and which go unused. Add a second chart tracking feature adoption rate: the percentage of active users who used each feature at least once in a given week. These charts tell you whether your features are landing, not just whether your product has active users.
- Create a WAU chart grouped by feature to see relative engagement
- Build a feature adoption rate chart (users of feature / total active users)
- Add behavioral cohorts for power users versus casual users
Build a team dashboard and set up alerts
Create a dashboard in Amplitude with your activation funnel, retention curve, WAU trend, and feature adoption chart. Add a metrics table at the top with your North Star metric and supporting KPIs with week-over-week comparisons. Set up email digests to send this dashboard to your team weekly. Configure anomaly detection alerts on your activation rate and retention rate so you are notified when a deploy or product change causes a statistically significant drop.
- Add all key charts to a single dashboard with a metrics summary table
- Set up weekly email digest to the product and engineering team
- Configure anomaly detection alerts on activation and retention rates
Common mistakes
Tracking everything instead of what matters
Instrumenting every click and page view creates noise that makes analysis harder, not easier. Focus on 15-25 events that map to your lifecycle stages and feature usage. You can always add more events later when you have a specific question to answer.
Not defining the activation event clearly
If your team cannot agree on what constitutes activation, your funnel is meaningless. The activation event should represent the user experiencing your product's core value for the first time. For a project management tool, it might be 'first task completed.' For a communication tool, it might be 'first message sent.' Be specific and validate against retention data.
Ignoring user properties during setup
If you skip defining user properties (plan tier, role, company size), every analysis will be aggregate only. You will not be able to segment retention by plan tier or compare activation rates between different user roles. Adding user properties retroactively only applies to future events, so the historical data gap persists.
Tips
Use Amplitude's Taxonomy API to programmatically enforce your event naming convention during CI/CD so non-conforming events are caught before they hit production
Create a 'Metrics Monday' ritual where the team reviews the dashboard together, building the muscle of data-informed decision-making
Set up Amplitude's Behavioral Cohorts to create segments like 'Activated users who did not return in week 2' for targeted outreach and research
Use Amplitude's Impact Analysis feature after launching a new feature to measure its causal effect on retention, not just correlation
How Vantage helps
Vantage's analytics integration lets you query your product metrics directly from your project workspace, connecting the data to the PRD where decisions are being made. Instead of switching to Amplitude to check a number and then switching back to update your spec, you can ask questions about your metrics right where you are writing requirements.