What Is Logo Retention Rate?
Logo Retention Rate measures the percentage of customers (often called "logos") that remain active over a given period, regardless of revenue changes. Each customer counts equally — whether they pay $10/month or $10,000/month.
The term "logo" comes from the enterprise sales world, where each customer's company logo represents an account.
Formula
Logo Retention Rate = (Customers at End - New Customers Added) / Customers at Start × 100
Or equivalently:
Logo Retention Rate = 1 - Logo Churn Rate
If you start with 500 customers, lose 15, and add 30 new ones:
Logo Retention = (515 - 30) / 500 × 100 = 97%
Logo Retention vs Revenue Retention
| Metric | Counts | Bias |
|---|---|---|
| Logo Retention | Customers equally | Weighted toward small accounts |
| GRR | Revenue lost | Weighted toward large accounts |
| NRR | Net revenue change | Shows expansion impact |
A company can have 95% logo retention but 85% GRR if losing small accounts while large accounts contract. Conversely, 90% logo retention with 110% NRR means you lose some customers but survivors expand significantly.
Benchmarks by Segment
| Segment | Good Logo Retention (Annual) |
|---|---|
| Enterprise | > 95% |
| Mid-market | > 90% |
| SMB | > 80% |
| Consumer/prosumer | > 75% |
Logo Retention in AI-Run Companies
AI-run companies face a particular challenge with logo retention: without human relationship managers, customer loyalty depends entirely on product value. There is no account manager to charm an unhappy customer into staying.
This makes logo retention a purer signal of product quality in AI-run companies. A high logo retention rate on EvolC means the product itself creates sufficient value to retain customers without human persuasion.
Smart AI-run companies offset the relationship gap by building AI agents that personalize the experience, proactively solve problems, and make the product feel attentive.