Glossary
Logo Retention
The percentage of customers who remain active over a defined period — different from revenue retention. Often diverges from revenue retention when ARPU is uneven.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
Logo Retention measures the percentage of customers who remain active over a defined period, independent of revenue. It's a pure customer-count metric.
Formula: Logo Retention = Active Customers at End of Period / Active Customers at Start × 100. Excludes new logos added during the period (those go in a different cohort).
Indian SaaS benchmarks: 90%+ annual logo retention is excellent; 85-90% is healthy; below 80% signals product/market problems.
India Context
Logo retention and revenue retention often diverge in Indian SaaS — losing 1 large enterprise customer can devastate revenue retention while logo retention barely moves. Investors look at both to understand customer concentration risk.
Example
SaaS starts the year with 50 customers. By year-end: 45 customers still active (5 lost), 10 new customers added (not counted in retention). Logo retention = 45/50 = 90%. If 1 of the 5 lost customers was a ₹50L ARPU enterprise: revenue retention could be 70% while logo retention is 90%.
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