Churn Rates in Second Life

January 9, 2007 D. H. McKee

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Someone who tries a social service once and bails isn’t really a user any more than someone who gets a sample spoon of ice cream and walks out is a customer.
So here’s [the] question — how many return users are there? We know from the startup screen that the advertised churn of Second Life is over 60% ([at the time of writing] it’s 690,800 recent users to 1,901,173 signups, or 63%.) That’s not stellar but it’s not terrible either. However, their definition of “recently logged in” includes everyone in the last 60 days, even though the industry standard for reporting unique users is 30 days, so we don’t actually know what the apples to apples churn rate is.
At a guess, Second Life churn measured in the ordinary way is in excess of 85%, with a surge of new users being driven in by the amount of press the service is getting. The wider the Recently Logged In reporting window is, the bigger the bulge of recently-arrived-but-never-to-return users that gets counted in the overall numbers.
SECOND LIFE: A story too good to check – Valleywag

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