Logo Churn
The percentage of customer accounts (logos) that cancel or stop using your product during a given period, regardless of their revenue contribution.
Formula
Logo Churn = (Customer Accounts Lost / Total Customer Accounts at Start) × 100
Logo churn counts the number of customer accounts lost, treating every customer equally regardless of how much they pay. It is the simplest form of churn measurement and is often the first churn metric a company tracks.
Logo churn is useful for understanding the breadth of customer loss. If you lose 10 out of 200 customers in a month, your monthly logo churn is 5%. This metric is especially relevant for companies with relatively uniform pricing, where each customer contributes roughly the same revenue.
However, logo churn can be misleading for companies with variable deal sizes. Losing ten $10/month customers has the same logo churn impact as losing ten $10,000/month customers, but vastly different revenue implications. That is why logo churn should always be tracked alongside revenue churn.
Segmenting logo churn by customer size, industry, acquisition channel, and tenure reveals patterns. Early-stage churn (within the first 90 days) often points to onboarding problems, while later-stage churn may indicate a failure to deliver ongoing value.
Related Terms
Churn Rate
MetricsThe percentage of customers who stop using your product or cancel their subscription during a given time period.
Revenue Churn (MRR Churn)
MetricsThe percentage of recurring revenue lost from existing customers due to cancellations and downgrades during a given period.
Retention Rate
MetricsThe percentage of customers who continue using your product or service over a given time period.
Customer Onboarding
StrategyThe structured process of guiding new customers from sign-up to their first moment of value, setting the foundation for long-term engagement.
Related Resources
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