Churn rate is a ratio that indicates the percentage of users who uninstall or stop using an app in a given period of time. It is the counterpart of retention rate indicating the loyalty of an app. Churn rate is measured at 1 day, 7 days, and 30 days after install.
If churn rate is high, it means neither an app can’t provide the value it proposed nor user experience is very bad. In this situation, app developers should fix the problems causing high churn rate before allocating budget and resources to mobile advertising, user acquisition, and app monetization. In order to understand the reasons for churn, app developers can use cohorts to leverage user behavior data.
Churn rate = 1 – (# of monthly active users / # of monthly installs)
Churn rate = 1 – Retention Rate
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