Logo Retention

The proportion of customers retained by count rather than by value.

The calculation

Customers retained over customers at the start of the period, counting each once. No weighting by value — that is the entire distinction from revenue retention, and the reason to report both.

Read the pair, not either one

Logo 95% with revenue 80% means the customers leaving are larger than average. Logo 80% with revenue 95% means they are smaller. The pair locates the loss in a size band; a single figure cannot.

Computing it defensibly

  1. Fix the cohort at the period start and follow it forward. Adding customers acquired during the period measures growth, not retention.

  2. Decide how a downgrade counts — usually retained, since the customer is still there — and state it.

  3. Use the renewal-eligible base where contracts are annual, or the figure mostly measures contract timing.

  4. Segment by size band, which is where the actionable finding almost always is.

Where it misleads

  • In a business with a few large customers it is dominated by a handful of relationships and behaves more like anecdote than metric.

  • It counts a customer paying one pound and one paying a hundred thousand identically, which is the point and also the limitation.

  • Free or trial accounts inflate the denominator if they are counted as customers, so state what qualifies.

RELATED TERMS

COMMON QUESTIONS

What is logo retention?
The share of customers retained over a period, counting each customer once regardless of what they spend. Also called customer retention.
How does it differ from revenue retention?
Revenue retention weights each customer by value. Losing ten small customers and one large one look very different by revenue and identical by logo.
Which should you report?
Both. Logo high and revenue low means you are losing large customers; the reverse means you are losing small ones. Either alone hides which.
Why does logo retention matter if revenue is fine?
Because small customers are where future large customers come from, and because a high volume of small-customer churn usually indicates an onboarding or fit problem that will reach larger accounts eventually.

FURTHER READING

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