Statistics: How Digital Transformation is Reducing App Churn Rate in 2025?

Formula for App Churn Rate 

hurn Rate = (Users at start of period – Users at end of period)/ (Users at start of period) * 100 

For example, if an app starts with 5,000 users at the beginning of the month but only 3,500 are still active at the end, the churn rate is, 

App churn rate = (5000 – 3500) / (5000) * 100 = 30% 

A high churn rate signals user dissatisfaction, poor user experience, or ineffective engagement strategies. 

Types of App Churn 

Why should you have an idea of types of app churn? Understanding these types can help you create targeted strategies to retain your business app users. 

• Voluntary Churn – When users consciously uninstall an app due to dissatisfaction, lack of value, or better alternatives. 

• Involuntary Churn – Occurs due to technical reasons like app crashes, payment failures, or account deactivation. 

• Early Churn – When users abandon the app shortly after downloading. 

• Late Churn – When long-time users disengage due to outdated features or changing preferences. 

General App Churn Rate Statistics 

Here are some of the common mobile app churn rate statistics, 

• As per Business of Apps data, 68% of new users abandon an app within the first 90 days. (2) 

• 25% of users abandon a mobile app just after one use as per Localytics latest data. (3) 

• Within the first 3 days of installation, the average app loses 77% of its daily active users (DAUs). (2) 

• The average retention rate for mobile apps worldwide after 30 days is only 7%. (4) 

• Mobile app engagement drops by 60% within a week of installation.  

• More than 1 of every 2 apps installed are uninstalled in the first 30 days of being downloaded. (5) 

App Churn Rate Statistics Based on Platforms 

Both iOS and Android have almost similar app churn rate. Following are the statistics showcasing it, 

• By day 30, iOS apps have an average churn rate of 96.3%. (9) 

• While for Android, app churn rate is about 97.9% which is comparatively higher than iOS. (9) 

App Churn Rates by Industry for Android 

The following is the average churn rate by industry for Android applications. These app uninstall rate is for a forecasted period of 30 from August 2024 to September 2024.  

• Gaming apps: 52.45% of users churn within the first 30 days of app installation. (5) 

• E-commerce apps: Experience a 33.82% churn rate within the first month due to checkout friction and lack of personalization. (5) 

• Finance apps: Have an average churn rate of 40.48% due to security concerns and complex onboarding. (5) 

• Travel apps: See a churn rate of 29.20%, often due to a lack of user-friendly interfaces and infrequent use. (5) 

For other popular industries, you can see app churn rates in the following image. 

Note: iOS has restricted sharing app churn rate data, so we haven’t added that. 

Reasons for High Churn Rates 

There are many reasons that result in high mobile app churn rate. Here are some compelling statistics validating those reasons, 

• Poor Onboarding Experience – 80% of users uninstall apps due to a confusing sign-up process. (6) 

• Lack of Personalization – 71% of users expect tailored experiences, and failing to meet this expectation leads to churn. (7) 

• Slow Load Times & Bugs – 53% of users abandon an app site if it takes more than 3 seconds to load. (8) 

• Ineffective Engagement – 60% of users churn if they don’t receive timely push notifications or in-app interactions. 

These statistics highlight why businesses must adopt a robust digital transformation approach to reduce churn. 

1. AI-Powered Predictive Analytics 

• AI identifies at-risk users before they churn. 
• You can take steps to re-engage users with personalized offers. 

2. Hyper-Personalization with Machine Learning 

• AI-driven recommendations for each user
• Adaptive user interfaces change based on behavior. 

3. Enhanced Customer Support with AI Chatbots 

• 24/7 AI-powered assistance reducing wait times. 
• Real-time query resolution improves user satisfaction. 

4. Automation for User Engagement 

• Automated re-engagement emails and notifications. 
• AI-driven marketing automation reduces manual efforts. 

5. Blockchain for Secure Transactions 

• Enhanced data security prevents involuntary churn. 
• Transparent payment processes improve user trust. 

1. Data-Driven User Insights to Reduce Churn 

Understanding why users leave is the first step to increasing app retention. Businesses can leverage AI/ML development services like AI-powered analytics and predictive insights to track user behavior, identify drop-off points, and detect churn risks. 

• Utilize predictive analytics to identify at-risk users and take proactive retention measures. 

• Track key metrics like mobile app churn rate, retention rate, and churn rates by industry to develop effective strategies. 

• Use real-time insights to optimize user interactions and engagement. 

2. AI-Driven Personalization and User Engagement 

Users expect personalized experiences specific to their interests and preferences. Integrating AI-driven personalization can increase app retention rates and enhance engagement. 

• Deliver content, recommendations, and notifications that are personalized based on user behavior. 

• Implement AI-powered chatbots for real-time user support and seamless communication. 

• Utilize behavioral triggers to send timely messages, such as onboarding tips, reminders, and re-engagement offers. 

3. Seamless UX Optimization to Prevent App Churn 

A poorly designed interface and complex navigation can result in a high app churn rate. Opting for UI/UX services to optimize the user experience is essential for keeping users engaged. 

• Ensure an intuitive, user-friendly interface across all devices. 

• Optimize onboarding with interactive tutorials to familiarize users with key features. 

• Minimize friction points in the user journey by simplifying navigation and reducing unnecessary steps. 

4. Omnichannel Customer Support for Better App Retention 

Providing exceptional customer support is key to reducing mobile app churn rate and improving user satisfaction. 

• Offer real-time support through live chat, email, phone, and social media. 

• Integrate AI-powered chatbots to provide 24/7 assistance and instant query resolution. 

• Develop a self-service knowledge base with FAQs, tutorials, and troubleshooting guides. 

5. Continuous Application Modernization with Cloud and DevOps 

Keeping an app up-to-date and optimized is essential for reducing churn rates across industries. Cloud computing and DevOps practices can ensure scalability, security, and performance. 

• Implement cloud-based solutions to improve speed, security, and reliability. 

• Adopt DevOps methodologies for frequent updates, bug fixes, and feature enhancements. 

• Use microservices architecture to increase agility, reduce downtime, and improve scalability. 

6. Gamification and Rewards to Improve User Engagement 

Incorporating gamification elements into an app can enhance user engagement and increase app retention rates. 

• Introduce loyalty programs, achievement badges, and point-based rewards to motivate users. 

• Use in-app challenges and interactive features to keep users engaged and encourage repeated app usage. 

7. Performance Monitoring and Optimization to Reduce App Churn 

An app with technical glitches, slow performance, or frequent crashes will drive users away. Continuous performance monitoring is crucial for maintaining a low mobile app churn rate. 

• Regularly test and optimize app speed, uptime, and responsiveness. 

• Use automated monitoring tools to detect performance issues before they impact users. 

• Ensure real-time troubleshooting to prevent app crashes and enhance the user experience.