Glossary term

Churn Rate

App churn rate

What is churn rate? App churn rate is the percentage of users who uninstall or stop engaging with an app over time. App churn can also be used interchangeably with abandonment rate. This app metric is typically measured at 30 days, 7 days, and 1 day after users first install the app. App churn rate is the exact opposite of app retention rate. Whereas app retention rate reveals how loyal a user base is over a period of time, app churn rate shows app developers exactly when in the app lifecycle users begin dropping off.

How to calculate churn

To understand why users churn, app developers can use cohorts, which enables them to leverage user behavioral data to better understand drop off points in their in-app experience, and address them in order to retain app users. Churn rate is calculated by this formula:

Churn rate = 1 - (# of monthly active users / # of monthly installs)

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Related terms

App LTV

LTV, or lifetime value, is a key metric which estimates the revenue a single user generates throughout their lifetime using an app. Ultimately, LTV predicts a user’s monetary value over time.

ARPDEU

ARPDEU (Average Revenue Per Daily Engaged User) is calculated by dividing total revenue by total engaged users.

App Session

An app session measures how frequently users interact with an app. Higher frequencies mean users are more engaged.