Revenue vs Logo Churn
Understand why revenue churn and logo churn tell different stories about retention risk.
Quick checklist
- Measure both revenue and logo churn monthly.
- Segment churn by plan and customer size.
- Watch for high logo churn masked by expansion.
- Align churn definitions with finance reporting.
- Track downgrade volume separately from churn.
Step-by-step
- Count logos churned in the period.
- Sum lost MRR from churned logos.
- Calculate revenue churn rate and logo churn rate.
- Compare rates by segment and plan.
- Use the gap to prioritize retention work.
How to interpret the gap
- High logo churn, low revenue churn: churn is concentrated in small plans.
- Low logo churn, high revenue churn: large accounts are at risk.
- Both high: retention and onboarding are broken.
Common mistakes
- Using annual churn to explain monthly retention changes.
- Combining downgrades with logo churn.
- Ignoring contraction inside active accounts.
