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TG3 SaaS/Glossary/Logo retention
SaaS metrics glossary

What is logo retention?

Logo retention is the headcount view of loyalty, how many customers you keep regardless of how much they pay. Here is the plain definition, the formula and why it tells a different story than revenue retention.

Definition
Logo retention is the percentage of customers you keep over a period, counted by number of accounts rather than by revenue. Start a year with 200 customers and keep 180 and your logo retention is 90 percent. It treats a tiny account and a whale as one logo each, which is both its strength and its blind spot.

Logo retention and revenue retention can tell opposite stories. You can keep 95 percent of your logos while losing 95 percent of your revenue if the one account that left was huge. That is why logo retention is best read next to revenue retention: logos show how broad your loyalty is, revenue shows how much it is worth.

How to calculate it

The logo retention formula.

Logo retention % = Customers retained at period end / Customers at period start x 100
Customers at start: accounts at the beginning of the period.
Customers retained: how many of those are still active at the end, excluding new adds. Logo retention is simply 100 percent minus your customer churn rate.

The free churn rate calculator works out customer churn, the inverse of logo retention.

Benchmarks

What counts as good logo retention.

Strong B2B SaaS holds annual logo retention above 90 percent and enterprise products often clear 95 given long contracts and high switching costs. SMB and self-serve run lower, sometimes in the 70s or 80s, because small customers come and go freely. The benchmark depends entirely on your segment.

A high logo retention with weak revenue retention is a warning. It means you are keeping plenty of customers but the ones leaving are your biggest or the survivors are downgrading. Reading logo retention against gross revenue retention shows whether your churn is concentrated in small accounts or eating real revenue.

How to improve it

Three ways to raise logo retention.

01

Nail onboarding

Most logos churn early, before they reach value. Strong onboarding in the first weeks is the biggest lever on customer retention.

02

Watch the small accounts

Logo churn often concentrates in smaller customers that get less attention. Light-touch success programmes can hold the long tail.

03

Fix fit at the source

Bad-fit customers churn no matter what. Tighter targeting keeps logos that were never going to stay out of the base.

Common questions

Questions about logo retention.

What is logo retention in simple terms?+

Logo retention is the share of your customers you hold on to over a period, counted by number of accounts. If you start the year with 200 customers and 180 are still around at the end, your logo retention is 90 percent. It ignores how much each one pays and just counts heads.

How do you calculate logo retention?+

Divide the number of customers retained at the end of the period by the number you started with, then multiply by 100. Exclude any new customers won during the period, since you are measuring retention of the existing base. It is simply the mirror image of your customer churn rate.

What is the difference between logo retention and revenue retention?+

Logo retention counts customers, revenue retention counts dollars. They diverge when the accounts you lose are bigger or smaller than average. You can keep 95 percent of logos but lose far more revenue if a single large account leaves, which is why reading both together is the only honest view of churn.

What is a good logo retention rate?+

Above 90 percent annually is strong for B2B SaaS, with enterprise often clearing 95 thanks to long contracts and high switching costs. SMB and self-serve products run lower, sometimes in the 70s or 80s, because small customers churn more readily. The right benchmark depends on your segment, not a universal number.

Is logo retention the same as customer churn?+

They are two sides of the same coin. Logo retention is the percentage of customers you keep and customer churn is the percentage you lose, so they always add to 100 percent. If your customer churn is 8 percent, your logo retention is 92 percent. People use whichever framing fits the story they are telling.

Churn rateGross revenue retentionNet revenue retentionAll definitions

Keeping logos but losing revenue?

If logo retention looks fine while revenue retention slips, your biggest accounts are at risk. Book a 30-minute audit and we will find the exposure. No sales sequence.

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