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Tip: Use cohort churn rates to compare different user groups and improve retention tactics.
The churn rate measures the percentage of users who discontinue your service within a specified period. Cohort analysis enables you to isolate specific user groups and identify when and why churn occurs, allowing for targeted improvements.
Industry | Typical 30-Day Churn Rate (%) |
SaaS / Software | 5% – 10% |
Mobile Apps | 20% – 40% |
E-commerce | 15% – 30% |
Fintech | 10% – 20% |
EdTech | 12% – 25% |
Note: Churn rates vary based on business model, product complexity, and customer engagement.
Scenario:
Out of 1,000 users who joined a cohort, 150 churned after 30 days.
Calculation:
Churn Rate = (150 ÷ 1,000) × 100 = 15%
Interpretation:
A 15% churn rate suggests moderate retention challenges needing further investigation.
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Answers to Frequently Asked Questions
It’s the percentage of users in a cohort who stop using your service within a specified time frame, such as 30 days.
It helps you understand retention patterns and improve customer success strategies.
Enhance onboarding, improve product value, and maintain personalized user engagement.
Measure churn regularly for new cohorts, typically on a monthly or quarterly basis.
High churn suggests issues with product fit, onboarding, or customer satisfaction.