Customer Retention Defined

A similar but simpler version of GRR is customer retention (also known as logo retention). Unlike GRR, customer retention is purely based on customer count, not the retained revenue from customers. Customer retention measures the total number of churned customers during a period against the the total number of customers at the start of that period.

retention rate

Example:

  • Your business enters January with 100 customers.
  • Your business exits January with two churned customers.
  • Your logo retention for January is 98%.

Generally, Customer Success functions are tasked by their management team or board to focus on either NRR or GRR/customer retention. In the section below, we’ll discuss the implications of having a central focus on each of these metrics.

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