by 57% with 
Are you losing customers on a regular basis? Are you not receiving the worth of your CAC for your mobile App? A recent study has shown that 26% of your mobile app users are going to leave your app within a day. If we use churn analysis to your mobile app, we can identify users that are likely to churn & direct our retention campaign towards these churners.
As an App developer, you would want most of your users to be at long-term usage stage. So, identifying the segment of users that are about to enter abandonment stage is crucial. Churn Analysis helps to identify which users are about to enter the abandonment stage and the patterns in such users. These patterns are helpful to identify potential churners before they churned out OR stopped using the game/app.
“Every user retained is a user earned”
It is a predictive analysis technique to understand churn of users and factors that lead to the same. For mobile app developers or managers, the average CPI is $1.52(for US market). So, every user saved who is likely to churn is worth more than the CAC (Customer Acquisition Cost).
How much churn analysis is worth?
So you ask! For example, assume your company has a churn rate of 5% per month and your competitor (same stats as your) has a churn rate of 10% per month. Assume if everything remains same, your monthly revenue will be 11% higher than your competitor after 3 month.
Find patterns in churners
If your app is a gaming app, churn analysis can also tell you that at which level you are losing your most customers. Moreover, it can also identify patterns in users which are churning. It can also find users characteristics who are likely to stay longer or leave sooner. Knowing the characteristics of such users groups can improve your marketing campaign.
Want to see it in action?
Watch our Webinar – How to apply churn analysis for Mobile App?
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Shachi Parikh
Shachi Parikh, Technical Analyst at Tatvic. Interested in jQuery, JavaScript and Data Analysis. She loves to travel, read fiction novels adventure sports.
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- Is There A Hole In Your Bucket? Churn analysis for Mobile App - February 22, 2014