Logo Churn Definition

Logo churn (also known as customer churn) is the percentage of customers who cancel or don’t renew their subscription over a defined time frame—typically monthly, quarterly, or annually.

‍Formula for Logo Churn Rate:

(Number of Customers Lost During Period ÷ Total Customers at Start of Period) × 100

Example: If you start the quarter with 200 customers and lose 10, your logo churn rate is 5%.

Logo Churn vs Revenue Churn: What’s the Difference?

While both logo churn and revenue churn measure customer loss, they reveal very different insights:

A company could have high logo churn but low revenue churn if mostly low-ACV accounts cancel. Conversely, losing a few high-revenue clients could result in low logo churn but high revenue churn—which may be more damaging to your bottom line.

At TrueRev, we track both metrics—automatically. You see who churned, how much revenue they took with them, and when it happened, all in one dashboard.

Why Logo Churn Matters to Finance Leaders

Logo churn is a leading indicator of customer satisfaction, onboarding quality, and product-market fit.

For CFOs, it has downstream implications on:

• Customer Acquisition Cost (CAC) payback periods
• ARR growth and forecast accuracy
• Board reporting and investor confidence
• Sales efficiency and pipeline planning

High logo churn can force your GTM teams into a costly loop of replacing customers rather than compounding growth.

What’s a Healthy Logo Churn Rate?

Benchmarks vary by business model and customer size:

• SMB SaaS: 3–5% monthly logo churn is typical
• Mid-market SaaS: 1–2% monthly
• Enterprise SaaS: <1% monthly (ideally annual renewals only)

TrueRev makes it easy to slice churn data by customer type, plan, contract length, and more—so you can see which segments are stable and which need attention.

How to Reduce Logo Churn

To reduce logo churn, start by analyzing who churns and when:

1. Segment by contract size, tenure, industry
2. Identify early churn risk signals (e.g., low usage, late payments)
3. Improve onboarding and customer success programs
4. Ensure billing, renewals, and invoicing are smooth and predictable
5. Integrate retention metrics into your revenue recognition stack

One often-overlooked source of churn confusion? Messy rev rec setups. If finance teams are using spreadsheets to manage deferred revenue, it’s easy to lose track of who’s actually active,