Logo Retention is calculated by which of the following methods?

Prepare for the Customer Success Manager Level 1 Certification Test. Utilize flashcards and multiple choice questions, each equipped with hints and explanations. Gear up for your exam!

Logo Retention is an important metric that assesses a company's ability to retain its customers over a specific period. The correct method for calculating logo retention focuses on understanding the proportion of customers who remain active at the end of a given period compared to the total number of customers at the beginning of that period.

By calculating active customers at the end and dividing that figure by the total customers at the beginning, businesses can gain insights into their customer retention effectiveness. This method captures the essence of retention by showing how many of those customers initially engaged with the company are still active, reflecting customer satisfaction and loyalty over time.

This calculation provides a clear view of customer longevity and the effectiveness of customer success initiatives, making it a critical piece of the overall customer success strategy. The other options do not accurately measure logo retention as they either misrepresent the starting point, involve different metrics that do not focus solely on customer retention, or do not consider the necessary customer base for appropriate comparisons.

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