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LR

Logo Retention

The share of customer logos active at period start that you still have at period end — unit-level retention, ignoring revenue size.

Percentage

Formula

LR=1Churned Contracted LogosStarting Contracted Logos\text{LR} = 1 - \frac{\text{Churned Contracted Logos}}{\text{Starting Contracted Logos}}

Built from

What it measures

The fraction of customer accounts (logos) you held onto over the period, counting each account once regardless of its contract value. A $200/mo customer and a $20K/mo customer each count as exactly one logo — so this isolates relationship retention from revenue retention. Expansion and contraction are invisible here; only whether a logo stayed or left.

Why it matters

Logo Retention tells you whether your product is sticky for customers as people, not just as dollars. Because every logo counts equally, it surfaces death-by-a-thousand-cuts churn that revenue metrics hide when a few big accounts mask many small departures. Leadership reads it to judge product-market fit and onboarding quality; product reads it to spot UX or value gaps; GTM reads it to decide how much to invest in retention versus acquisition. A falling rate is one of the earliest, clearest signals that something is broken upstream.

How to read it

Read Logo Retention as a trend, not a snapshot — plot it across 6 to 12 months against your own baseline and cohorts. It runs from 0% to 100%; 95% means you kept 95 of every 100 logos. A sharp drop (97% to 92%) demands investigation into a product issue, a segment shift, or competitive pressure. But always read it alongside revenue retention: high Logo Retention with low GRR means you are keeping small accounts and losing big ones. And watch the absolute churn count, because as the denominator shrinks the same number of departures shows up as a worse percentage.

What good looks like

Good

You retain the large majority of logos each month and the rate is stable or improving across cohorts — a sign of healthy onboarding and product-market fit.

Watch

Logo Retention is drifting down month over month, or newer cohorts retain worse than older ones; tighten onboarding, support, and early-life activation before it compounds.

Bad

Logo Retention is falling steadily or churn is concentrated in a customer segment or use case, pointing to a systemic product, expectation, or fit problem that needs a root-cause fix.

Watch-outs

  • Confusing logo retention with revenue retention. A single large account churning can tank GRR/NRR while Logo Retention barely moves — and many small departures can quietly erode it while revenue looks fine. Read both together.
  • Ignoring the denominator size. With a small starting logo count, one or two departures swing the rate by several points; the percentage is noise until you have enough logos to trust it.
  • Misdating churn events. A contract that ended in a prior month must be counted in that period's cohort, not whenever you happened to process it — backdate to the actual end date or trends will lag reality.
  • Mixing trial and contracted logos. Logo Retention applies only to customers with a formal contract; folding in trials inflates the denominator and distorts churn. Track trial-to-paid conversion separately.

Worked example

Hypothetical

LR=112200=10.06=0.94=94%\text{LR} = 1 - \frac{12}{200} = 1 - 0.06 = 0.94 = 94\%

You open June with 200 contracted logos. During June, 12 customers end their contracts and none of the survivors fully leave. You retained 188 of 200, so Logo Retention for June is 94%.

Variants & windows

The same metric re-expressed by a mechanical transform — a trailing window, a growth rate, a per-unit scaling, or a book/segment cut. Each is computed from Logo Retention above.

  • Monthly Logo Retention - LARR Alternate cut of the parent metric
  • T3M Logo Retention - LARR Trailing 3-month
  • TTM Logo Retention - LARR Trailing 12-month

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