Logo churn

Logo churn counts heads, not money. If you started the quarter with 200 customers and 10 cancelled, logo churn is 5% regardless of whether those ten were your smallest accounts or your largest.

That is precisely why logo churn is never sufficient on its own. In a B2B SaaS business with a wide contract-value range, losing ten $5k accounts and losing one $200k account are very different events, and only one of them shows up clearly in logo churn.

When logo churn is the more useful number

Despite the limitation, there are cases where it is the metric you want:

• Self-service and PLG segments, where contract values cluster tightly and the count genuinely reflects the health of the funnel.
• Early-stage products, where absolute revenue is small and the question is whether the product retains anyone at all.
• Support and success capacity planning, which scales with accounts rather than with dollars.

Pair it with revenue churn

Read logo churn next to revenue churn. The relationship between them tells you where you are losing:

• Logo churn high, revenue churn low → you are losing small accounts. Often a pricing or onboarding problem at the low end.
• Logo churn low, revenue churn high → you are losing a small number of large accounts. Usually a product or account-management problem upmarket.
• Both high → the retention issue is general, not segment-specific.