Logo (Customer) Retention Rate
Also known as: Customer Retention Rate, Logo Churn (inverse)
The percentage of customers retained over a period, ignoring contract size. Every account counts equally, so a churned $5K SMB and a churned $500K enterprise both register as one lost logo.
Formula
(Customers at End - New Customers Added) / Customers at Start × 100Who Is This Metric For?
Track monthly to understand customer attrition in your portfolio and identify patterns.
Review by cohort and segment to spot systemic retention problems across the team.
Use alongside GRR to separate 'how many customers leave' from 'how much revenue leaves.'
Priority by Stage
Track this alongside GRR. It's the simplest retention metric and tells you the raw reality of how many customers are leaving.
Segment logo retention by tier and cohort. Patterns here drive your risk management playbooks.
Logo retention should be stable. Focus on understanding which segments and cohorts deviate and why.
Benchmarks
| Segment | Good | Great | World Class |
|---|---|---|---|
| SMB | 75-80% | 80-85% | 85%+ |
| Mid-Market | 85-90% | 90-93% | 93%+ |
| Enterprise | 90-95% | 95-97% | 97%+ |
Common Mistakes
- Treating all logo churn equally. Losing a $500K enterprise account is very different from losing a $5K SMB account
- Not tracking first-year vs. mature customer churn separately. First-year churn signals onboarding and sales alignment issues
- Reviewing the number annually only. Monthly tracking surfaces problems while there is still time to intervene
- Counting heavy downgrades as retention. A customer that cuts seats by 80% is functionally close to churned, even though the logo is still on the books