App analytics are crucial for mobile teams as they provide insights into user behavior, helping optimize the app to reach business goals. Defining clear goals is essential before tracking analytics, and various tools such as Firebase, Localytics, and Mixpanel can be used to track key metrics like active users, conversions, engagement, revenue, adoption, and retention. These tools offer features like filtering data by platform, date, audience name, user property, events, and more. Mobile app analytics help identify bottlenecks in the funnel, allowing teams to make informed decisions to improve their app, ultimately achieving business objectives.