Logo churn is customer-count attrition — how many accounts leave, not how many dollars disappear.

How it works

Count logos at period start, subtract logos lost (not paused or downgraded unless defined as churn), divide by starting logos. B2B teams often report annual logo churn on a cohort basis. Revenue churn or NRR captures expansion from remaining logos.

A business can show low revenue churn if big customers expand while logo churn rises among SMBs — a warning for PLG motions scaling upmarket.

Why it matters

• Founders: Segment logo churn by segment, channel, and CSM assignment. Fix onboarding before blaming sales for bad-fit logos.
• Investors: High logo churn caps LTV and raises CAC payback risk even if current ARR looks fine.

Annualize carefully: quarterly logo churn of 3% is not automatically 12% annual — use cohort math. Seasonal businesses may show predictable churn spikes at renewal seasons.

Compare logo churn to NPS and support ticket volume — rising tickets often precede logo churn by a quarter.

Common mistake

Excluding downgrades or non-renewals from logo churn definitions to look better. Be consistent quarter to quarter.

Practical takeaway

Report logo churn with the same customer definition you use for sales quotas. Changing definitions mid-year breaks trend analysis and makes board conversations harder than they need to be. Segment by customer size and acquisition channel so you know whether churn is a product problem or a targeting problem.

Related ideas

• Logo retention
• Net revenue retention
• Cohort retention analysis