New logos can hide losses in the original cohort.
Logo retention measures how many starting customers remain at the end of a period. Its complement is logo churn. New customers affect total growth but do not count as retained members of the opening cohort.
A customer count weights every logo equally. Losing one large enterprise account can have a small logo-churn effect and a large revenue effect. Revenue retention provides the complementary view.
The formula, made clear.
- Opening-cohort losses
- Starting customers that are absent at period end; consistently define reactivation.
- Closing customers
- Retained opening customers plus new customers remaining at the end.
Put the numbers in context.
Of 1,000 opening customers, 50 leave. Retention is 95% and churn 5%. With 100 new customers remaining, the period closes with 1,050 customers.
| Input | Example value |
|---|---|
| Customers at period start | 1,000 customers |
| Opening customers lost | 50 customers |
| New customers added | 100 customers |
| Opening-cohort customer retention | 95% |
What this calculation assumes
One defined period and a consistent active-customer rule. Lost customers cannot exceed the opening cohort. New customers that join and leave before the end are excluded from new additions.
What to consider next.
Compare logo churn with revenue churn, then inspect retention by acquisition cohort and customer segment.
How we approach financial models →