Logo Churn
The percentage of customer accounts (logos) lost in a given period, regardless of the revenue each account represented.
Formula
(Lost Accounts / Total Accounts at Start) x 100
Why logo churn matters
Logo churn measures the rate at which you lose customer relationships. Unlike revenue churn, it treats every customer equally - losing a $99/mo customer counts the same as losing a $10,000/mo customer.
This matters because even small customers can become large ones through expansion. High logo churn with low revenue churn might mask a long-term problem: you are retaining big accounts while losing the future pipeline of growing accounts.
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How to calculate logo churn
Divide the number of customer accounts that cancelled or did not renew during a period by the total number of accounts at the start of that period.
Logo Churn Rate Calculator
(Lost Accounts / Total Accounts at Start) x 100
Common Mistakes
- -Ignoring logo churn because revenue churn looks healthy
- -Not distinguishing between voluntary cancellations and involuntary churn from payment failures
- -Counting paused or downgraded accounts as churned when they may reactivate
Pro Tips
- +Track logo churn alongside revenue churn - divergence between the two tells a story
- +Segment logo churn by customer size to spot if you are losing a specific tier disproportionately
- +Calculate the "replacement ratio" - how many new logos you need to replace churned ones
Related Terms
Churn Rate
The percentage of customers or revenue lost over a given period. Customer churn measures account losses; revenue churn measures dollar losses.
Dollar Churn
The percentage of recurring revenue lost from cancellations and downgrades in a given period. Measures the financial impact of customer losses.
Revenue Churn
Revenue churn (also called MRR churn) is the percentage of recurring revenue lost from existing customers in a given period due to cancellations and downgrades. It measures the rate at which your revenue base erodes.
Customer Retention Rate
Customer retention rate is the percentage of existing customers who remain active and continue purchasing over a specific time period. It measures a business's ability to keep customers coming back.
Further Reading
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