Definition
The percentage of distinct customer accounts lost in a period, regardless of their revenue size.
Formula
Accounts churned / Accounts at start of period x 100
How to measure
Divide the count of accounts that fully cancelled during the period by the total account count at the start of that period.
Why track it
Logo churn rate flags satisfaction problems across the customer base that a revenue-weighted metric might hide behind a few large accounts.
Example
A company loses 25 of its 500 accounts this month, a 5% logo churn rate.
FAQ
- What is Logo Churn Rate?
- The percentage of distinct customer accounts lost in a period, regardless of their revenue size.
- How do you calculate Logo Churn Rate?
- Accounts churned / Accounts at start of period x 100
- Why track Logo Churn Rate?
- Logo churn rate flags satisfaction problems across the customer base that a revenue-weighted metric might hide behind a few large accounts.