Logo Churn %
Growth
Usage
Industry:
Sector Agnostic
Short Definition
Logo Churn % measures the percentage of customers (or “logos”) a company loses within a specific period. Each logo represents one paying customer or account. The metric focuses on customer count retention, not revenue, showing how effectively a business maintains its customer base over time.
Short Definition
Logo Churn % measures the percentage of customers (or “logos”) a company loses within a specific period. Each logo represents one paying customer or account. The metric focuses on customer count retention, not revenue, showing how effectively a business maintains its customer base over time.
Short Definition
Logo Churn % measures the percentage of customers (or “logos”) a company loses within a specific period. Each logo represents one paying customer or account. The metric focuses on customer count retention, not revenue, showing how effectively a business maintains its customer base over time.
Why it matters for Investors
Customer base health: Indicates whether growth is driven by true retention or by constantly replacing lost customers.
Predictability: Lower churn signals stable recurring revenue or repeat business — key to long‑term value.
Early warning signal: Rising churn often precedes slowing growth or weakening product‑market fit.
Why it matters for Investors
Customer base health: Indicates whether growth is driven by true retention or by constantly replacing lost customers.
Predictability: Lower churn signals stable recurring revenue or repeat business — key to long‑term value.
Early warning signal: Rising churn often precedes slowing growth or weakening product‑market fit.
Why it matters for Investors
Customer base health: Indicates whether growth is driven by true retention or by constantly replacing lost customers.
Predictability: Lower churn signals stable recurring revenue or repeat business — key to long‑term value.
Early warning signal: Rising churn often precedes slowing growth or weakening product‑market fit.
Formula
Practical considerations:
Time frame: Choose a measurement period aligned with your customer renewal or engagement cycle — typically monthly, quarterly, or annually.
Customer definition: A “logo” represents a unique paying customer or organization, not individual end‑users within a client account. For B2C models, treat “customer” as a distinct purchaser or subscriber.
New customers: Exclude new customers acquired during the period from the starting base when calculating churn — this isolates retention performance of the pre‑existing customer cohort.
Data accuracy: Pull customer activity data from your system of record — such as CRM, billing, payment processor, or client management database. Set clear rules for when an account is considered active, inactive, or closed to ensure consistent churn tracking.
Complementary metrics: Combine Logo Churn % with Revenue Churn %, Customer Retention Rate, or Net Customer Growth for a complete view of customer stability and quality over time.
Interpret across industries: In subscription or contract‑based sectors (SaaS, fintech, telecom, professional services), Logo Churn measures client loss directly. In transactional or retail environments, use related retention metrics — such as Repeat Purchase Rate or Active Customer Churn — to capture similar behavior.
High logo churn % inflates CAC payback: When many customers leave quickly, the company earns less revenue per customer. That means it takes longer to recover Customer Acquisition Cost (CAC) — slowing down capital efficiency and cash recycling for growth.
Low logo churn % compounds Lifetime Value (LTV): The longer customers stay, the more they buy or renew — which increases average revenue per customer and improves margins over time. Retained customers require no new marketing spend, so each additional renewal adds to profitability.
Formula
Practical considerations:
Time frame: Choose a measurement period aligned with your customer renewal or engagement cycle — typically monthly, quarterly, or annually.
Customer definition: A “logo” represents a unique paying customer or organization, not individual end‑users within a client account. For B2C models, treat “customer” as a distinct purchaser or subscriber.
New customers: Exclude new customers acquired during the period from the starting base when calculating churn — this isolates retention performance of the pre‑existing customer cohort.
Data accuracy: Pull customer activity data from your system of record — such as CRM, billing, payment processor, or client management database. Set clear rules for when an account is considered active, inactive, or closed to ensure consistent churn tracking.
Complementary metrics: Combine Logo Churn % with Revenue Churn %, Customer Retention Rate, or Net Customer Growth for a complete view of customer stability and quality over time.
Interpret across industries: In subscription or contract‑based sectors (SaaS, fintech, telecom, professional services), Logo Churn measures client loss directly. In transactional or retail environments, use related retention metrics — such as Repeat Purchase Rate or Active Customer Churn — to capture similar behavior.
High logo churn % inflates CAC payback: When many customers leave quickly, the company earns less revenue per customer. That means it takes longer to recover Customer Acquisition Cost (CAC) — slowing down capital efficiency and cash recycling for growth.
Low logo churn % compounds Lifetime Value (LTV): The longer customers stay, the more they buy or renew — which increases average revenue per customer and improves margins over time. Retained customers require no new marketing spend, so each additional renewal adds to profitability.
Formula
Practical considerations:
Time frame: Choose a measurement period aligned with your customer renewal or engagement cycle — typically monthly, quarterly, or annually.
Customer definition: A “logo” represents a unique paying customer or organization, not individual end‑users within a client account. For B2C models, treat “customer” as a distinct purchaser or subscriber.
New customers: Exclude new customers acquired during the period from the starting base when calculating churn — this isolates retention performance of the pre‑existing customer cohort.
Data accuracy: Pull customer activity data from your system of record — such as CRM, billing, payment processor, or client management database. Set clear rules for when an account is considered active, inactive, or closed to ensure consistent churn tracking.
Complementary metrics: Combine Logo Churn % with Revenue Churn %, Customer Retention Rate, or Net Customer Growth for a complete view of customer stability and quality over time.
Interpret across industries: In subscription or contract‑based sectors (SaaS, fintech, telecom, professional services), Logo Churn measures client loss directly. In transactional or retail environments, use related retention metrics — such as Repeat Purchase Rate or Active Customer Churn — to capture similar behavior.
High logo churn % inflates CAC payback: When many customers leave quickly, the company earns less revenue per customer. That means it takes longer to recover Customer Acquisition Cost (CAC) — slowing down capital efficiency and cash recycling for growth.
Low logo churn % compounds Lifetime Value (LTV): The longer customers stay, the more they buy or renew — which increases average revenue per customer and improves margins over time. Retained customers require no new marketing spend, so each additional renewal adds to profitability.
Worked Example
Line Item | Value | Notes |
|---|---|---|
Customers at Start of Month | 1,000 | Active paying customers on Day 1 |
Customers Lost (Churned) | 50 | Canceled or non-renewed accounts |
New Customers Acquired | 120 | Added during the month (excluded from churn base) |
Customers at Start of Month | 1,120 | Active paying customers on Day 30th (Month End) |
Logo Churn % = 50/1,000 = 5%. Logo Churn is 5% for the month
Notes:
The company lost 5% of its starting customer base in one month.
If this pattern continued, annualized logo churn ≈ 46% (from 1 - (1 - 0.05)^{12}), signaling severe retention risk.
Dollar churn may be lower if the lost customers were small accounts.
Investors would look next at Net Dollar Retention (NDR) to see whether upsells offset logo losses.
Worked Example
Line Item | Value | Notes |
|---|---|---|
Customers at Start of Month | 1,000 | Active paying customers on Day 1 |
Customers Lost (Churned) | 50 | Canceled or non-renewed accounts |
New Customers Acquired | 120 | Added during the month (excluded from churn base) |
Customers at Start of Month | 1,120 | Active paying customers on Day 30th (Month End) |
Logo Churn % = 50/1,000 = 5%. Logo Churn is 5% for the month
Notes:
The company lost 5% of its starting customer base in one month.
If this pattern continued, annualized logo churn ≈ 46% (from 1 - (1 - 0.05)^{12}), signaling severe retention risk.
Dollar churn may be lower if the lost customers were small accounts.
Investors would look next at Net Dollar Retention (NDR) to see whether upsells offset logo losses.
Worked Example
Line Item | Value | Notes |
|---|---|---|
Customers at Start of Month | 1,000 | Active paying customers on Day 1 |
Customers Lost (Churned) | 50 | Canceled or non-renewed accounts |
New Customers Acquired | 120 | Added during the month (excluded from churn base) |
Customers at Start of Month | 1,120 | Active paying customers on Day 30th (Month End) |
Logo Churn % = 50/1,000 = 5%. Logo Churn is 5% for the month
Notes:
The company lost 5% of its starting customer base in one month.
If this pattern continued, annualized logo churn ≈ 46% (from 1 - (1 - 0.05)^{12}), signaling severe retention risk.
Dollar churn may be lower if the lost customers were small accounts.
Investors would look next at Net Dollar Retention (NDR) to see whether upsells offset logo losses.
Best Practices
Accurate tracking: Use CRM or subscription data to log beginning and lost customers.
Monitor early churn: High first‑period churn highlights onboarding or expectation issues.
Segmentation: Analyze logo churn (%) by customer segment, region, or product to identify trends.
Regular updates: Recalculate with each reporting period or customer status change.
Transparency: Disclose logo churn (%) calculation methods, including exclusions, in performance reports.
Retention focus: Use churn data to enhance customer satisfaction and reduce loss rates.
Best Practices
Accurate tracking: Use CRM or subscription data to log beginning and lost customers.
Monitor early churn: High first‑period churn highlights onboarding or expectation issues.
Segmentation: Analyze logo churn (%) by customer segment, region, or product to identify trends.
Regular updates: Recalculate with each reporting period or customer status change.
Transparency: Disclose logo churn (%) calculation methods, including exclusions, in performance reports.
Retention focus: Use churn data to enhance customer satisfaction and reduce loss rates.
Best Practices
Accurate tracking: Use CRM or subscription data to log beginning and lost customers.
Monitor early churn: High first‑period churn highlights onboarding or expectation issues.
Segmentation: Analyze logo churn (%) by customer segment, region, or product to identify trends.
Regular updates: Recalculate with each reporting period or customer status change.
Transparency: Disclose logo churn (%) calculation methods, including exclusions, in performance reports.
Retention focus: Use churn data to enhance customer satisfaction and reduce loss rates.
FAQs
Is Logo Churn Sector‑Agnostic or SaaS‑Specific?
Logo Churn is originated from SaaS and subscription models, where each customer (or “logo”) represents a contracted account — so conceptually, it’s most native to recurring‑revenue businesses (SaaS, fintech platforms, cloud services, etc.). However, the idea behind it — tracking how many customers you lose over time — is sector‑agnostic, as long as:Your business has repeat or renewable relationships with defined customers (not purely one‑off transactions).
You can identify distinct accounts or entities (“logos”) rather than individual transactions.
What is included in Logo Churn (%)? The percentage of beginning customers lost during a given time frame, adjusted per policy.
Can Logo Churn (%) increase? Yes, due to poor service, competition, or economic factors.
Can Logo Churn ever be negative? No, not by itself. However, Net Logo Growth (New Customers – Churned Customers) can be positive or negative, showing net expansion of the customer base.
How are downgrades handled? Exclude from lost customers unless they result in termination, per policy.
Is it the same as Logo Churn? No, Logo Churn (%) is a percentage, while Logo Churn is the raw number of lost customers.
What if a customer reactivates? Include in the beginning count if reactivated, per policy.
How do renewals affect Logo Churn? Customers who renew or expand remain active — they don’t count as churned. Logo Churn only captures non‑renewals or full cancellations.
FAQs
Is Logo Churn Sector‑Agnostic or SaaS‑Specific?
Logo Churn is originated from SaaS and subscription models, where each customer (or “logo”) represents a contracted account — so conceptually, it’s most native to recurring‑revenue businesses (SaaS, fintech platforms, cloud services, etc.). However, the idea behind it — tracking how many customers you lose over time — is sector‑agnostic, as long as:Your business has repeat or renewable relationships with defined customers (not purely one‑off transactions).
You can identify distinct accounts or entities (“logos”) rather than individual transactions.
What is included in Logo Churn (%)? The percentage of beginning customers lost during a given time frame, adjusted per policy.
Can Logo Churn (%) increase? Yes, due to poor service, competition, or economic factors.
Can Logo Churn ever be negative? No, not by itself. However, Net Logo Growth (New Customers – Churned Customers) can be positive or negative, showing net expansion of the customer base.
How are downgrades handled? Exclude from lost customers unless they result in termination, per policy.
Is it the same as Logo Churn? No, Logo Churn (%) is a percentage, while Logo Churn is the raw number of lost customers.
What if a customer reactivates? Include in the beginning count if reactivated, per policy.
How do renewals affect Logo Churn? Customers who renew or expand remain active — they don’t count as churned. Logo Churn only captures non‑renewals or full cancellations.
FAQs
Is Logo Churn Sector‑Agnostic or SaaS‑Specific?
Logo Churn is originated from SaaS and subscription models, where each customer (or “logo”) represents a contracted account — so conceptually, it’s most native to recurring‑revenue businesses (SaaS, fintech platforms, cloud services, etc.). However, the idea behind it — tracking how many customers you lose over time — is sector‑agnostic, as long as:Your business has repeat or renewable relationships with defined customers (not purely one‑off transactions).
You can identify distinct accounts or entities (“logos”) rather than individual transactions.
What is included in Logo Churn (%)? The percentage of beginning customers lost during a given time frame, adjusted per policy.
Can Logo Churn (%) increase? Yes, due to poor service, competition, or economic factors.
Can Logo Churn ever be negative? No, not by itself. However, Net Logo Growth (New Customers – Churned Customers) can be positive or negative, showing net expansion of the customer base.
How are downgrades handled? Exclude from lost customers unless they result in termination, per policy.
Is it the same as Logo Churn? No, Logo Churn (%) is a percentage, while Logo Churn is the raw number of lost customers.
What if a customer reactivates? Include in the beginning count if reactivated, per policy.
How do renewals affect Logo Churn? Customers who renew or expand remain active — they don’t count as churned. Logo Churn only captures non‑renewals or full cancellations.
Related Metrics
Commonly mistaken for:
Churn Rate % (Revenue) (Measures percentage of revenue lost)
Related Metrics
Commonly mistaken for:
Churn Rate % (Revenue) (Measures percentage of revenue lost)
Related Metrics
Commonly mistaken for:
Churn Rate % (Revenue) (Measures percentage of revenue lost)
Components:
Index