How is churn rate defined in the context of mobile apps?

Churn rate measures the percentage of users who stop using an app within a given timeframe. This disengagement may be due to dissatisfaction, competition, or other factors.

What’s the difference between churn rate and retention rate?

Churn rate quantifies the loss of users over a period, while retention rate shows the percentage of users who remain active, indicating customer loyalty and app engagement.

Why is monitoring churn rate important for apps?

Churn rate is essential for understanding customer satisfaction and lifetime value (LTV). Monitoring churn can highlight areas for improvement in user retention, product-market fit, and acquisition spend.

How do you calculate churn rate?

To calculate churn rate, divide the number of users lost in a set period by the starting number of users, then multiply by 100. This can be tracked monthly or annually to monitor retention efforts and growth trends.

What is considered an acceptable churn rate for mobile apps?

An acceptable churn rate varies by industry, but an annual rate between 4% and 7% is often manageable, aligning with specific business goals and industry benchmarks. No business can expect a zero churn rate.

How can you reduce app churn rate?

Strategies to reduce churn include running cohort analysis, optimizing onboarding, personalizing experiences, re-engaging users through targeted communication, and addressing identified issues to enhance user satisfaction and retention.