What is App Churn? How to calculate and reduce the mobile app churn
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App Churn rate could be the biggest loss for any business, but it is inevitable.
Let’s discuss what it is?
And how to reduce it to survive in this fierce competition.
App owners and marketers put all their time, money, and efforts into increasing their app downloads. And they succeed in their goal. An intelligent marketing strategy can help you get lots of customers or increase your app downloads. But the most important part, which most marketers and app owners often overlook, is customer retention.
A report by Statista shows that an average app lost around 95% of its regular users in a month. Which is the biggest figure that can put a huge impact on your business growth. So in order to stay ahead in this competitive market, you need to keep the app churn rate as low as possible.
What is the Mobile App churn rate & how to calculate it?
App churn is defined as the percentage of users who uninstall or stop engaging with an app within a given period. It is vital to figure out why your users are leaving your app so that you can resolve the issues to reduce the churn rate.
For the growth of a mobile app, the number of users retaining the app must be higher than the number of users who uninstalled the app.
Churn Rate Matters because
It suppresses the business growth; it is like a leaky bucket theory, existing users leaving, and you are trying to refill by attracting new ones. But this is not a good and effective approach that gets pricey fast.
- Reducing your churn rate by only 5% can increase your profit level by 75%.
- Attracting new buyers are 5-25x costlier than retaining existing ones
- Improving retention rate has a 2-4x bigger impact on acquiring new customers.
- You can earn 60-70% more profit by selling to existing customers, while only 5-20% from new prospects.
So it is evident from the above stats that churn rate is the most crucial factor for the growth of any business. It affects vital business metrics like retention rate and customer lifetime value.
The above essential facts can help you craft a more accurate marketing strategy for the growth of your business.
How to calculate the churn rate?
So the app churn rate the percentage of users stop using or retaining to your app within a give time period. Churn rate can easily be calculated using the following formula
Churn rate= (Users at the beginning of time-Users at the end of time)/users beginning of time
Say you start this month with 500 users, and at the end of the month, there are 300 users. Then churn rate would be
(500-300)/300 = 66.66%
It is simple to calculate, but the churn rate is not as simple as it seems. Different factors can affect the churn outcome. However, this formula gives you an idea about your app’s performance.
What causes churn?
The reason for churn can be different. There may be different reasons why users are uninstalling your app. Maybe due to the confusing or complex interface, or they have lost interest in using your app, or users are uninstalling your app because they do not have enough space in their device.
So the reason for the churn rate could be multiple, but the good thing is that you can figure out why they are leaving your app. You can find the reason behind increasing churn through numerous techniques. Ask your users for feedback and organize surveys, gather the data, and improve all your faults. Another important thing you can do is track user behavior, flows funnels, etc., through the analytics tools. So through this, you can find out why users are uninstalling your app.
How to reduce churn?
Churn can be reduced when customers start retaining on your app. And the customer will retain your app when they get an overall enhanced user experience.
Make Seamless Onboarding
The first impression is the last. And Onboarding is the first thing user observe when interacting with your application. So offer your users a seamless onboarding experience. Onboarding experience can be improved by considering the following tips.
Make the registration process simple and shorter
Make the registration process as simple and shorter as possible. A longer and complex registration process may frustrate your visitors and make them leave the process in between. So to give good Onboarding and enhanced user experience, make the registration process short and simple.
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Do not overwhelm with extra information.
Also, to make Onboarding seamless, it is essential to show them only the information they need. So do not overwhelm your users with what they cannot handle.
Personalize your user’s experience
Now the user not just demands personalization, but they expect it from the brands they are dealing with. Personalization helps enhance the overall user experience, consequently reducing the app churn. You do not always require users’ demographic or personal data to offer personalized data. But a lot you can from the way users interact with your app. Learn about your users’ habits and offer them what they want.
Stay In Touch With Your Users
Get in regular touch with your users through email, social media, push notifications, and in-app messaging. But this doesn’t mean to spam your customers with thousand of useless messages. Stay in touch with purposeful messages and notifications so that your users do not get annoyed with them.
Give Rewards Wisely and Generously
Offering rewards and rebate to customers wisely are a great way to keep them engaged with your brand. Offer your customers attractive, and limited-time offers to create a sense of urgency. So offering your clients time to timely rewards and offers to keep retaining them to your brand thus helps in reducing the churn rate.
Figure it out and fix it
The primary and most important thing you need to do to prevent the app churn is to figure out the actual cause of churn. You will only be able to properly fix the churn only after knowing the cause behind it. Closely monitor your analytics, take user feedback and do whatever you can do to find out the reason behind the churn. Once you get the reason, start working on it to reduce the App churn.
App churn is an essential factor to know for the success of your app. If your app churn is increasing, you must find out the reason behind it. Try to resolve the issue that is causing churn. Enhance your users’ experience by offering them what they want from you to personalize their experience. Offer then an app with outstanding features, which keep them retained to the app. Try MageNative for free.