Churn Rate

Wave
July 6, 2018

Churn rate is the percentage of users who stopped using your app within a specific time period.

Every mobile app struggles with their customer churn rate. If you recall, the average mobile app loses 77% of its Daily Active Users (DAUs) within the first 3 days after installation.

And yet, the lifeblood of an app lies in retaining users. Without having a stable number of users, and without converting them, there can be no future for your app and no growth for your brand.

How to Calculate Churn Rate

To calculate churn rate, use the following formula:

The Importance of Mobile Churn Rate

Churn rate is important in mobile apps because it’s a way to measure how quickly you’re losing users.

The more DAUs you lose, the more expensive it gets. You end up scrambling to add new users who can keep the income flowing. The success of your app lies in managing that churn rate and converting the users you already have.

It’s important to note that every company manages customer churn in a unique way. You need to choose the metrics that make sense for your executives and then monitor what’s happening to your user base.

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