Churn Rate

The percentage of users who stop using your app over a given period—the inverse of retention and a critical health indicator.

What is Churn Rate?

Churn rate measures the percentage of users who stop using your app within a specific time period. It's the inverse of retention: if D7 retention is 20%, D7 churn is 80%. Understanding and reducing churn is essential for sustainable growth.

Churn Rate Formula

Churn Rate = (Users Lost / Users at Start) × 100

Why Churn Matters

Churn is critical because:

Types of Churn

Voluntary Churn

Users actively choose to leave—uninstalling the app or canceling subscription. Often due to poor experience, lost interest, or found alternative.

Involuntary Churn

Users churn due to external factors—payment failures, device changes, or technical issues. Often recoverable with proper intervention.

Revenue Churn

For subscription apps, revenue churn tracks lost recurring revenue, which may differ from user churn if users downgrade rather than cancel.

The Churn-Retention Relationship

Churn Rate = 100% - Retention Rate. If you have 40% D1 retention, you have 60% D1 churn. Focus on retention improvements to reduce churn automatically.

Common Churn Causes

Churn CauseTimingSolution
Poor onboardingD0-D1Simplify first experience
No value deliveryD1-D7Faster time to "aha moment"
Content exhaustionD7-D30Regular content updates
Lost habitD30+Engagement loops, notifications
Better alternativeAny timeCompetitive differentiation

Reducing Churn

  1. Identify at-risk users: Predict churn before it happens
  2. Improve onboarding: D1 churn is often highest
  3. Create engagement loops: Daily reasons to return
  4. Win-back campaigns: Re-engage churned users
  5. Fix technical issues: Crashes and bugs cause churn
  6. Collect feedback: Exit surveys reveal causes

Churn Analysis