Logo Churn
Logo churn measures the percentage of customer accounts (logos) lost over a period — the unweighted retention metric distinct from dollar churn which weights losses by revenue size.
Why This Matters
Logo churn calculation: customers churned in period / customers at start of period. Logo churn provides unweighted view of retention — losing one customer counts as one logo regardless of size. Dollar churn weights by ARR. Both metrics matter — high logo churn with low dollar churn indicates losing many small customers (potentially manageable); low logo churn with high dollar churn indicates losing few large customers (often catastrophic). Healthy B2B SaaS achieves logo churn under 10% annually for SMB-focused, under 5% for mid-market, under 2% for enterprise.
Frequently Asked Questions
Frequently Asked Questions
Why measure logo churn alongside dollar churn?
Different signals. Logo churn shows customer satisfaction breadth; dollar churn shows revenue impact. Either metric alone misses important context. Both needed for complete retention picture.
What's typical B2B SaaS logo churn?
SMB-focused: 10-15% annually (acceptable given SMB business mortality). Mid-market: 5-10% annually. Enterprise: 2-5% annually. Lower churn at larger customers reflects higher switching costs and stickier relationships.