User Churn Rate
User Churn Rate quantifies the percentage of users who stop using the software over a specific period. It's a critical indicator of user satisfaction and product-market fit. A high churn rate can signal underlying issues with the product or service, requiring attention to aspects such as user experience, feature set, or customer service. Conversely, a low churn rate is indicative of strong user loyalty and product satisfaction.
(Number of Users Who Churn / Total Users at Start of Period) * 100
If 100 out of 2,000 users stop using an app over a month, the churn rate is (100/2000)*100 = 5%.