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Metrics & Analytics

Logo Churn

The percentage of customers (accounts) lost over a given period, regardless of their revenue contribution.

Definition

Logo churn (also called customer churn) measures the percentage of customer accounts that cancel their subscriptions in a given period. Unlike revenue churn which weights by dollars, logo churn treats every customer equally. Losing one $100/month customer and one $10,000/month customer both count as two logos.

Why It Matters

Logo churn reveals whether you are keeping customers happy regardless of how much they pay. High logo churn with low revenue churn means small customers are leaving while big ones stay. This might be acceptable or might indicate product-market fit problems with SMB. Understanding both metrics together tells the full story.

How It Works

Calculate logo churn by dividing the number of customers who cancelled during a period by the number of customers at the start of that period. Track monthly and annually. Segment by customer type, plan, or acquisition source to understand which customer groups churn most.

Best Practices

  • 1Track logo churn separately from revenue churn
  • 2Segment churn by customer characteristics to find patterns
  • 3Investigate spikes in logo churn immediately
  • 4Use logo churn to evaluate product-market fit by segment
  • 5Balance logo-focused and revenue-focused retention efforts
  • 6Consider whether high SMB logo churn is acceptable for your business
  • 7Compare to industry benchmarks for your customer segment

Churn Prevention

Identify at-risk customers early and trigger re-engagement campaigns. Reduce both logo and revenue churn with targeted email automation.

Learn More

Frequently Asked Questions

Both matter for different reasons. Revenue churn directly affects your financials. Logo churn indicates customer satisfaction breadth. High logo churn creates brand risk and referral problems even if revenue stays stable. Most companies optimize for revenue churn while monitoring logo churn.

Enterprise SaaS often targets under 5% annual logo churn. SMB SaaS might see 5-10%. High-velocity consumer-ish products can exceed 10%. Lower is better, but acceptable rates depend on acquisition costs and lifetime value.

Improve onboarding to help all customers find value. Build re-engagement campaigns for declining usage. Send check-ins to customers who have not engaged recently. Make it easy to get support before frustration leads to cancellation.