app store optimization

Know the Insights of App Churn Rate for Success of App Store Optimization

The number of users installing and accessing your mobile app is not the only metric to foresee its performance. While implementing strategic app store optimization techniques, other metrics are also relevant.

App churn rate is an imperative factor to take into consideration while watching and improving the performance of the application. This rate showcases how stable your app is and whether customers are content with the same or not.

So, know more about app churn rate and find here the ways to improve the same.

Table of Contents 

A. What is App Churn Rate?

B. How Important is this Metric & its Benefits?

C. How to Calculate App Churn Rate?

D. Positive & Negative Signs of Such App Metric

E. How to Reduce App Churn Rate?

What is App Churn Rate?

An app churn rate is an essential metric that showcases how many users have left, uninstalled, and stop using your application. It is a rate that describes that the monetization model of the app is decreasing and so is the lifetime value.

Decreasing such rates helps in creating the value and overall ROI of your business.

If you want to utilize the app churn rate metric to your advance, then know more about how to calculate the same. Also, be aware of several positive and negative sides.

How Important is this Metric & Its Benefits?

Churn rate is not just a metric, but an imperative parameter to analyze the performance of your application. It is an essential part of the ASO service offered by a reliable marketing partner that helps to understand the following things.

  • Understand your users: Once you calculate your users, you will get to know how many users are leaving the application and stop using the same. It provides you with a clear idea of your app’s performance, issues with the app, and other measures that can be improved.
  • Retain users: It’s an alarming factor for your business. The app churn rate allows you to know the reason for users uninstalling the app so that you can fix the leakage. It saves you from sending more money on attracting new ones.
  • Foresee the competition: You can monitor the activity of users clearly. Find out the reasons users not accessing your business app, is there any competitive factor, or any other reason. Ultimately, the churn rate will provide transparent information regarding the competitive situation and better prepare for the same.

There are other perks of working on this churn rate as a part of your app store optimization strategy

  • Know the dynamics of users retention rate
  • Calculate the lifetime value of your app
  • Identify changes that are degrading the app’s performance
  • Analyze which customers like and dislike your app
  • Predict app’s performance
  • Reflect on the quality of your product
  • Focus on creating a high-value business application

How to Calculate App Churn Rate?

Let’s take an example to calculate the churn rate of your business app. Suppose, you had 600 users in March and at the end of the month you had 400 users. So, normally you calculate the churn rate as 600-400 which equals 200 i.e. 33.33% is your churn rate.

On the other side, you can also calculate the churn rate by dividing the churned users in a month by the total number of customers you have. This formula gives you a clear idea of how many customers are abandoning your app and doing something about it.

Positive & Negative Signs of Such App Metric

Every app store optimization metric has a positive and negative side. And, you need to look at both to improve the overall performance.

Concerning the churn rate, you have to look at the positive and negative.

The positive side of app churn rate means:

  • Your company is losing the prospective customers
  • You fail to generate brand trust among users
  • You might be doing something written in your app marketing
  • It might be your ASO strategy has a loophole in it

The negative side of app churn rate means:

  • Revenue is increasing from the retaining customers
  • Less number of users are likely to uninstall your app
  • Possibility to revamp your app store optimization strategy
  • Opportunity to experience substantial results ahead

 How to Reduce App Churn Rate?

From the above discussion, it is clear that your application churn rate must be on the negative side. And, here we have a few ways to reduce the rate.

1. Optimize users onboarding: Sometimes the app’s adaption process is not up to the mark which results in new users uninstalling your application. So, first of all, work on the first-level user experience by removing the complexities of the app. There must be smooth navigation of app installation, limit the number of steps, and work on the improved UX.

2. Send push notifications: Encourage visitors to remember your brand and know about more product deals and discounts. Sending personalized notifications helps improve the user-level experience and retain them for a long.

3. Personalize your user’s interaction: Enable personalized interaction with users by sending messages and notifications as per the preferred range of products and services. 

Concluding Thoughts 

Performing a successful and result-oriented app store optimization for your business application covers imperative metrics. Taking care of the app churn rate is essential to decrease the rate of uninstallation.

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