Managing App Churn with Segmentation and Notification

App Churn is the number or percentage of users that that stop using an app in a time period, in other words app users attrition.

For example, consider your app had 100,000 users end of April and you added 20,000 installs/ users in May and had 113,000 users end of May. The simple back of envelope calculation suggests that the churn rate is 7%.

Flurry’s research shows that apps usually retain 4% users after a year, that is approx. 8% churn per month. So the big question you would have – “Is 7% churn good or bad?” One would tend to think Yes! 7% churn is better than 8% however, there is more to the story. Here are a few questions that you should ask-

  1. What % churn was users acquired this month? Is the churn rate for new users going up or down?

  2. What is the engagement churn rate? Is it going up or down?

  3. What is the revenue churn rate? Is it going up or down?

Analyzing cohorts will get you insights into user behavior and the reason for churn. I will write about Cohort and detailed Churn analysis in a separate blog. In this blog I want to talk about one of the reasons for Churn and a strategy that has worked for me to fight churn.

In my experience “Notification Spamming” is one of biggest reasons why people uninstall/ stop using apps. No one like their home screen full of deals that they do not care about.

Here’s the typical flow for app users. They discover your app from one of the app download campaigns you are running- the ad. has a context (media, content, creative) and the user builds an expectation “ Looks like this app will help me do that”. However, the experience is to the contrary. There is no onboarding, no personalization instead 2 hours after app install user starts receiving app rating/ sharing notifications e.g. “You downloaded our app, please rate us or share with your friends”.

No! this is not user lifecycle management and no wonder users uninstall apps on the first day.

Here’s what has worked for us in bringing down the churn rate-

  1. Smart “automagical” onboarding- get to know your user asking no or few questions.

  2. Segment the app users- demographic, behavior, likings etc.

  3. Send personalized notifications and follow a user lifecycle management plan.