Term · Business Model & Operating KPIs
Logo Churn
In briefLogo churn is customer attrition measured by the number of customers, not by revenue. Every lost customer counts the same. The metric complements revenue churn and reveals whether a broad customer base or only a few large customers determine the picture.
Definition
Logo churn measures customer attrition based on their number ("logos"), independent of revenue per customer. In contrast to revenue churn, every lost customer counts the same here, regardless of size. The metric shows how stable the customer base is in its breadth.
How it is calculated
Formula. Logo churn = lost customers in period ÷ customers at start of period × 100 %
Why it matters for small caps
In small-cap SaaS models, a low revenue churn can mask a high logo churn if a few large customers dominate the revenue picture. High customer attrition by number points to weak product stickiness.
Common misreadings
- A low logo churn is equated with healthy revenue retention, even though the loss of a few large customers can still hit revenue hard.
In the process
Frequently asked
How does logo churn differ from revenue churn?
Logo churn counts customers by number, revenue churn weights by revenue. Together they show whether many small or a few large customers are leaving.
Why can looking only at revenue churn be misleading?
If a few large customers carry the revenue, revenue churn can stay low while numerous small customers leave and the base erodes.
What should be considered at small companies?
With a low customer count, logo churn fluctuates strongly. Individual departures can visually distort the rate, so longer periods are more meaningful.
Related terms
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.