What Is Logo Churn in SaaS?

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1. What is Logo Churn?

Logo churn refers to the number or percentage of customers (logos) a company loses over a given time period, regardless of the revenue they bring. It simply tracks how many distinct companies cancel — not how much money is lost.

In contrast to revenue churn, logo churn measures the volume of accounts lost, which is important for understanding product fit, retention challenges, and overall customer health.

2. Why It’s Important

What’s the difference between logo churn and revenue churn?

- Logo Churn: Tracks lost customers (e.g., 5 accounts left this month).
- Revenue Churn: Tracks lost revenue (e.g., $10,000 MRR lost).

Losing a single enterprise customer might impact your revenue churn more than ten small startups combined. But tracking logo churn reveals patterns in scale and product-market alignment.

Why should SaaS companies track logo churn?

High logo churn may indicate problems with onboarding, adoption, or product value — even if revenue churn looks okay. It’s also a warning sign for your Net Promoter Score (NPS), brand reputation, and bottom-up growth.

How do you calculate logo churn?

Logo Churn Rate (%) = (Customers Lost in Period / Total Customers at Start of Period) × 100
Example: If you started with 200 customers and lost 10, your logo churn rate is 5%.

What’s a good benchmark?

It varies by segment. Generally:
- Enterprise SaaS: 5–10% annual logo churn
- SMB/PLG SaaS: 3–5% monthly logo churn may be normal

How to reduce logo churn

  • Improve onboarding time-to-value
  • Use health scores and alerts to detect disengagement
  • Segment by ICP and focus CS efforts on high-risk cohorts
  • Automate touchpoints for low-touch users
  • Ask for feedback proactively before cancellation

Tools like Customerscore.io help you monitor logo churn and take action before customers drop off unnoticed.

FAQ

Why is it called “logo” churn?

Each company or customer is often represented by their logo — so “losing logos” is a shorthand for losing customers.

Which is more important: logo churn or revenue churn?

Depends on your business model. If you care about market share, retention rate, or product-market fit — logo churn matters a lot. But for financial forecasting, revenue churn takes priority.

Should you report both logo and revenue churn?

Yes. They complement each other and help you understand both customer behavior and financial impact.

How can I track logo churn more easily?

Use a customer success tool like Customerscore.io to tag churn events and view trends by segment, customer type, or behavior.