App Retention

The percentage of users who stop using your mobile app over a specific time period. Churn rate is the inverse of retention rate and serves as a critical health indicator for any app business. For subscription apps, tracking churn is essential since even small reductions in churn can significantly impact revenue and customer lifetime value (LTV). Churn rate, also known as attrition rate, measures the percentage of users who stop using your mobile app over a specific period. In the context of mobile applications, churn represents users who disengage from your app—whether they uninstall it completely, cancel their subscription, or simply stop opening and interacting with it.

Active users is a fundamental metric that counts the number of unique individuals who engage with your mobile app within a specific time period. This metric serves as a key indicator of app health, user engagement, and growth potential. By tracking active users across different time frames—daily (DAU), weekly (WAU), and monthly (MAU)—app developers and marketers can measure product stickiness, evaluate marketing effectiveness, and make data-driven decisions to optimize user acquisition and retention strategies.

Daily Active Users (DAU) measures the number of unique users who engage with your app within a 24-hour window. This metric is essential for understanding your app's daily engagement levels and is particularly important for apps where daily interaction drives success, such as social media, gaming, and messaging platforms. DAU helps product teams assess user engagement, track campaign effectiveness, and identify patterns in user behavior.

Cohort analysis is a method of analyzing data that involves grouping data sets by shared characteristics or experiences, typically within a specific time frame. The purpose of cohort analysis is to track changes or patterns in behavior over time and to gain insights into the factors that influence those changes.

LTV meaning, Lifetime Value (LTV), is a performance indicator used to evaluate the total earnings generated by a customer throughout their entire tenure of using a mobile application. Historical data on user retention rates is often used to estimate the expected duration of user engagement. Having knowledge of what is LTV and the average LTV of your customers is crucial for executing successful marketing strategies. LTV in marketing for mobile apps is normally used to optimize revenue streams such as subscriptions, in-app advertising, and in-app purchases by determining the amount of money that can be spent on user acquisition while still being profitable.