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Churn Rate

With a wide range of metrics available, app performance can be quickly evaluated based on positive and negative indicators. One crucial metric that reveals potential issues with your product is the app churn rate.

 

What Is Churn Rate?

The churn rate, according to the generally accepted churn rate meaning, represents the percentage of users who discontinue using a mobile app after a certain period following its installation. Typically, this metric is measured one day, one week, and 30 days after the initial download.

Statistically, users tend to dedicate the majority of their time (around 90%) to the top five apps, while others are periodically removed. As a result, the global churn rate for a three-month period stands at approximately 95%.

To define the churn rate, divide the number of churned users by the number of users at the beginning and then multiply by 100 to express it as a percentage. The formula is:

Churn Rate = (Churned Users / Users at the Beginning) * 100

For example, if you had 1000 users at the beginning of the month and 800 users at the end, and the number of churned users is 200, the churn rate would be: Churn Rate = (200 / 1000) * 100 = 20%. This indicates that the churn rate for that particular month is 20%, meaning 20% of your user base stopped using the app during that time.

By consistently monitoring this metric, you can identify trends and pinpoint the stage at which your app loses its appeal to users. Armed with this knowledge, you can work on enhancing your app or game to sustain user engagement.

Every churned user should be taken into account, considering the significant effort, time, and resources invested in acquiring them. Lost customers also impact crucial metrics such as retention rate and customer lifetime value.

Maintaining a low churn rate is vital, indicating growth in your product as new users join and existing ones remain engaged. Learn more about effective customer engagement strategies in the blog post "How to Increase App Engagement?"

Learn more on the Asolytics blog – use your knowledge straight away in Asolytics tools!

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