Everyone with a web site or blog should be using Google Analytics. It's free and easy to use. The way it works is you sign-up for a free analytics account and then for each site you have you add a little snippet of HTML code to each page you want google to track. For WordPress blogs you install the Analytics plugin and activate the plugin with the tracking code Analytics gives you for that site.
Steve walks through how to interpret the many of the Google Analytics reports. Your site's statistics are important because they allow you to directly measure the results of many of your business decisions.
Thanks Steve for the great tutorial!