Localytics: 63% of Users Stop Using Apps Within First Month

In this report, average retention is the percentage of users who were still engaged with apps one month, two months and three months after they initially downloaded them. Average churn, meanwhile, is the percentage of users who have stopped using apps.

Analyzing data from June 2015 to June 2016, Localytics found that the average user retention for all apps was 37 percent one month after download. This is a decrease from Localytics’ last annual update, which showed average user retention for all apps to be 42 percent one month after download.

Localytics’ new report found average user churn to be 63 percent one month after download. In addition, the report showed that average user retention for all apps dropped to 25 percent, and average user churn increased to 75 percent two months after download. By the end of the third month, average user retention for all apps dropped to 20 percent, while average user churn increased to 80 percent.

Breaking user retention and churn down by app industry, Localytics found that media and entertainment apps had the highest retention across all three months after users first download apps. Specifically, the report showed media and entertainment apps have a 40 percent user retention rate one month after download. By the end of the third month, this number decreased to 22 percent.

Gaming apps, meanwhile, were found to have the lowest average user retention, at 27 percent one month after download. According to the report, this number decreased to 11 percent three months after download.

Finally, Localytics found that average user retention rates were higher for “high-performing apps,” or apps that have at least 1 million monthly active users. For instance, high-performing media and entertainment apps were found to have a 52 percent average user retention rate one month after download, compared with 40 percent average user retention one month after download for media and entertainment apps as a whole.

The report reads:

Apps are falling short in providing the types of high-quality experiences that users have come to expect. Although mobile remains the mode for interacting with many brands, brands just aren’t pulling their weight. As a result, users are churning at an increasing rate.

Readers: How quickly do you stop using mobile apps?