Churn rate definition and calculation | Adjust

The definition of churn rate is the percentage of users who have stopped using an app. This could be customers who have lapsed in use, so they are no longer ... Product MobileAttribution Makesenseoftheuserjourney CTVAdVision ProveROIfromCTVandOTT iOSSolutions FreesolutionsforiOSmeasurement SubscriptionMeasurement Driveuserengagement ROIMeasurement Unifycost&revenuereporting Datascape Allyourdatainoneplace AudienceBuilder Builddynamicaudiences CampaignAutomation Optimizecampaignsatscale FraudPrevention Blockfraudinrealtime DataProtection Strengthendatasecurity DataResidency Controlyourdatalocation ProductOverview Related Partners SuccessStories ProductUpdates TheAssistsDashboard:visibilityintoyourwholecustomerjourney Viewall Company AboutUs Careers Newsroom Security&Compliance ContactUs Resources Learn Blog Webinars eBooks SuccessStories Glossary ResourcesOverview HotTopics Report iOS14.5+SuccessmadesimplewithTiktok iOS14Resources PartnerBenchmarks Pricing Support LogIn Requestademo Whatischurnrate? Churnrateisanessentialmetricforallapps.Learnthechurnratedefinition,howtocalculatechurnrate,andwhyitisanimportantKPI. Relatedterms Attribution LifetimeValue AttributionWindow Glossary Churn Intoduction Thedefinitionofchurnrateisthepercentageofuserswhohavestoppedusinganapp.Thiscouldbecustomerswhohavelapsedinuse,sotheyarenolongerstartingsessions,oritcouldbecustomerswhohaveuninstalledtheapp.Thedifferencebetweenwhichofthesetwooptionsisusedtodefinechurnisdeterminedbyanapp’sverticalandbusinessgoals.Forexample,customerchurnrate,specifically,referstothecohortofuserswhohavestoppedusingtheapp’sproductsorservices.Thisisparticularlyusefulforappsthatuseasubscriptionmodel. Atitscore,anapp’schurnrateisthenumberofusersthatleavetheappinagiventimeframe. Whyischurnrateimportant? Ifyourchurnrateishigh,thiscouldmeanyou’respendingalotofmoneyonuseracquisitionbutnotgettingthemaximumROIfromtheuser.Byidentifyingwhattheissuesare,youcanimproveuserretention—andsubsequentlyrevenue.Somemobileappverticalsarepreparedforahighchurnrate.Forexample,hypercasualgamingdeveloperstendtoviewhighchurnratesasaninevitablepartoftheiroverallbusinessstrategyandhaveadaptedtheirmodelstoaccommodateforit. Howtocalculatechurnrate Totailorachurnratecalculationtoyourapp’sneeds,firstdeterminewhetheryouwillbemeasuringinactiveusers,userswhohaveuninstalledtheapp,oruserswhohavecanceledasubscription.Then,chooseyourtimeframe.Doyouneedtomeasureannualchurnrate,monthlychurnrate,oranotherperiod? In-appeventtrackingcanhelpyouseeexactlywhereintheuserlifecycleyouruserstendtochurn,providingbothanideaofwhichperiodwillbemostusefultomeasureandtheexactplacesyoumightneedtointervenetoreducechurn. Churnrateformula Tocalculateyourchurnrate,dividechurnedcustomersoveraperiodoftimebythenumberofcustomersyouhadatthestartofthattimeframe. Whatisagoodchurnrate? OneoftheraretimesanegativeKPIisapositiveresult,anegativechurnratemeansanapphasmademorerevenuefromnewandexistingcustomersthanithaslostfromchurnedusers. However,churnisanaturalpartofdoingbusiness.Someuserswillnotlikeanapp,findanalternativethatbetterfitstheirneeds,orsimplyhavenofurtherneedforitsfeatures.Nevertheless,churnrateisanimportantKPIforappstoconsider. Byanalyzingtherateofchurn,appdeveloperscanfigureoutifchangesneedtobemadetohelpretaincustomerssuchasimprovingUX,optimizingfeatures,oradjustingprices.Churnratebenchmarkswilldependonyourapp’svertical,region,andoperatingsystem. It’simportanttorememberthatachurneduserisnotlostforever;thereareplentyofwin-backstrategies. GetexamplesofdeeperusecasesforusingchurnrateasaKPIinourguidetounderstandingtheuserlifecycle.Or,learnmoreaboutwhatmakesagoodretentionrateandget10strategiesforimprovingyourapp’sretention. WanttogetthelatestfromAdjust? Subscribetoournewsletterbelowtoreceiveupdatesfromusastheyhappen KeepReading QuickLinks Requestademo AdjustHelpCenter ContactUs Pricing Blog Product Attribution CTVAdVision iOSSolutions ROIMeasurement Datascape AudienceBuilder FraudPrevention DataProtection DataResidency Resources Webinars Ebooks SuccessStories Glossary iOS14Resources PartnerBenchmarks Company AboutUs Careers Newsroom Security Partners ©2022AdjustGmbH.Allrightsreserved DataPreferences LegalNotice PrivacyPolicy CCPA Terms ForgetDevice ServiceStatus