What is the Churn Rate?
The churn rate is the counterpart of the retention rate. It shows which percentage of users abandon an app after installing it. It includes people who uninstall the app but also those who keep it on their device and do not use it anymore.
The churn rate refers to a specific period. For instance, the day-30 churn rate specifies which percentage of users do not use the app anymore 30 days after they installed it.
Why is the Churn Rate important?
The churn rate indicates whether an app provides long-term value to users or not. Apps with high churn rates fail to do so. Thus, high churn rates should cause app owners to reevaluate their apps and improve the user experience.
How to calculate the Churn rate?
To calculate the churn rate, divide the number of users who abandon an app within a specific period by the total number of new users in this period.
Churn Rate = Number of Users who abandon app / Total Number of Users
As the churn rate is the counterpart of the retention rate, you can also calculate it by subtracting the retention rate from 1:
Churn Rate = 1 – Retention Rate