Definition
Logo retention rate is the share of customers retained over a period, excluding expansion or contraction in revenue.
Formula
Logo retention = (starting customers - churned customers) / starting customers
Example
Start with 200 customers, lose 15: logo retention is 185 / 200 = 92.5%.
How to use it
- Use alongside revenue retention to separate customer count vs revenue effects.
- Segment by plan or cohort to find churn drivers.
Common mistakes
- Including new customers in the numerator (it should be based on starting customers).
- Using logo retention to judge expansion-led businesses without context.
Measured as
Logo retention = (starting customers - churned customers) / starting customers
Misused when
- Including new customers in the numerator (it should be based on starting customers).
- Using logo retention to judge expansion-led businesses without context.
Operator takeaway
- Use alongside revenue retention to separate customer count vs revenue effects.
- Segment by plan or cohort to find churn drivers.
- Keep Logo Retention Rate consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Read Retention rate: how to measure retention correctly if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
- Decide whether Logo Retention Rate is a growth, retention, or efficiency signal before you set targets around it.
Where to use this on MetricKit
Guides
- Retention rate: how to measure retention correctly: Learn retention rate definitions, how it differs from churn, and how to measure retention by cohort and segment.
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.