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The Internet Compass

Metrics

Logo Churn

Logo churn is the percentage of customer accounts ("logos") lost during a period, calculated independent of each account's revenue size — as opposed to revenue churn, which weights losses by dollar value.

Logo churn and revenue churn can diverge sharply and both are worth tracking: a company can have flattering revenue retention (because it kept its largest accounts) while quietly losing a large share of its smaller customers, which is a leading indicator of problems moving upmarket rather than a real strength.

Investors and buyers evaluating a company's customer base typically want both figures, because logo churn concentrated among a specific segment (a particular plan tier, industry, or company size) points to a product-fit problem revenue churn alone can hide.

Example

Losing 8 of 200 customers in a quarter is 4% logo churn, regardless of whether those 8 accounts were the company's smallest or largest customers by revenue.