Active Logos Waterfall

What is Active Logos Waterfall?

The Active Logos Waterfall metric quantifies the number of current parent customers or clients that have engaged with the company's products or services during a specified period. It provides insight into the total count of actively participating customers, disregarding revenue amounts.

The metric can be broken down into its different components: Start of Period Parent Accounts, New Parent Accounts, and Churned Parent Accounts.

Why is it important to measure Active Logos Waterfall?

For businesses, especially in the SaaS industry, tracking Active Parent Accounts is essential for assessing customer retention and engagement. This metric typically encompasses a specific time frame, such as a month, quarter, or year, depending on the company's preference and business model. By monitoring the number of Active Parent Accounts over time, companies can gauge the success of their customer retention efforts and identify trends in customer activity.

The Active Logos Waterfall metric is particularly valuable for evaluating the overall health and growth of a business, as a higher number of Active Parent Accounts often signifies customer satisfaction, loyalty, and effective customer relationship management. Conversely, a declining count of Active Parent Accounts may indicate potential issues with customer retention and engagement that require attention.

Overall, measuring the Active Logos Waterfall metric enables companies to make data-driven decisions regarding customer retention strategies, product improvements, and customer support to maintain a robust and engaged customer base.

How is Active Logos Waterfall calculated?

The Active Logos Waterfall is calculated by summing the number of Active Parent Accounts in each period that attributed recurring revenue. The metric indicates how Active Parent Accounts developed during the period by categorizing accounts into different components based on their source:

• Start of Period indicates the number of Active Parent Accounts at the beginning of the period.
• New Parent Accounts sums the number of accounts that became active during the period.
• Churned Parent Accounts sums the number of accounts that became inactive during the period.

Formula

Active Logos Waterfall = Start of Period Active Parent Accounts + New Parent Accounts - Churned Parent Accounts