As mentioned, churn rate is essential to keep track of in order to understand the health of your mobile app. If you’re losing more users than you’re acquiring each month, you’ll eventually run out of users altogether, or have to continually spend more and more money to acquire new users and replace all the churned users.  Whether your churn rate is high will depend on your app, your vertical, your ability to engage and retain users and players, the competitive landscape, price points in your app, and several other factors.
As Andrew Chen highlighted years ago, most new app users churn quickly:
We can see that the average app loses 77% of its DAUs within the first 3 days after the install. Within 30 days, it’s lost 90% of DAUs. Within 90 days, it’s over 95%. Stunning. The other way to say this is that the average app mostly loses its entire userbase within a few months, which is why of the >1.5 million apps in the Google Play store, only a few thousand sustain meaningful traffic.
There are many reasons that a user may uninstall an app, as CED Commerce highlights:
The reason for churn can be different. There may be different reasons why users are uninstalling your app. Maybe due to the confusing or complex interface, or they have lost interest in using your app, or users are uninstalling your app because they do not have enough space in their device.
Another potential reason: you acquired poor-quality users to start with who really didn’t intend to install your app and had no intention of continuing to use it. Some marketing tactics work well in the (very) short term, but show they they’re simply pumping metrics at the expense of actual, sustainable, long term growth.
It’s also essential to monitor churn rate alongside other key marketing metrics in order to get a complete overview of the performance of your business and marketing efforts.