Definition
Logo churn counts heads, not dollars. It is the number product and customer-success teams feel most directly, and it depends entirely on how you count a customer.
Formula
Customer churn rateLogo churn = Customers lost in period ÷ Customers at start of period
Example
Demo Co started October with 207 customers, lost 3 and added 8. Monthly logo churn was 3 ÷ 207 = 1.4%.
Benchmarks
For SMB SaaS, 2% to 4% monthly is common; mid-market and enterprise products often run well under 1% monthly.
Common mistakes
- Using a customer count that differs by system. See three systems, three customer counts.
- Comparing monthly logo churn to annual revenue churn.
Examples use Demo Co, a fictional $3M ARR SaaS company, or a generic company where noted. Benchmarks are common reference points, not targets for every business.