Logo Churn vs Revenue Churn

What is Logo Churn vs Revenue Churn?

Logo churn counts customers lost regardless of size. Revenue churn counts dollars lost. They often tell different stories about business health.

If you lose 10 small customers paying $100/month and gain expansion from 5 large customers paying $1,000/month, logo churn looks bad but revenue churn might be excellent.

Why the Distinction Matters

Logo churn reveals customer satisfaction breadth. Revenue churn reveals financial impact. A company with high logo churn but low revenue churn is losing small customers while retaining large ones.

This pattern might be fine strategically if you're moving upmarket. It might be concerning if small customers are your future growth engine.

Which Metric to Prioritize

Revenue churn matters more for financial health. Logo churn matters more for understanding product-market fit across segments. Track both and understand the relationship between them.

Monthly churn analysis:

• Starting customers: 100
• Customers churned: 5 (logo churn = 5%)
• Starting MRR: $100,000
• MRR from churned customers: $2,500
• Revenue churn: $2,500 ÷ $100,000 = 2.5%

5 small customers churned (5% logo) but only 2.5% of revenue. Your larger, more valuable customers are staying.