What is logo churn versus revenue churn?

Full Explanation

A company might have 5% logo churn but -2% revenue churn (negative churn = growth). This happens when remaining customers expand whilst a small number leave. Conversely, 2% logo churn with 5% revenue churn suggests that lost customers represented a larger share of revenue than average — often a red flag indicating customer concentration risk or loss of key accounts. Industry benchmarks vary widely: B2B SaaS targets <5% logo churn monthly, B2C SaaS often accepts 5-10%. For enterprise SaaS, logo churn can be artificially low (sticky contracts, high switching costs) whilst revenue churn is negative (expansion). For self-serve SaaS, logo churn is often higher but expansion MRR is lower. The key insight: two companies with the same logo churn can have completely different growth trajectories depending on revenue churn. If your logo churn is high but revenue churn is negative (meaning expansion outpaces departures), your business is actually growing from the existing base.

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