Cohort
Definition
A group of customers or users acquired within the same defined period, typically one month or one quarter, tracked as a group over subsequent periods to measure retention, revenue development, and lifetime value. Cohort analysis is the required methodology for lifetime value calculation at Level 2 and above under the FFI Standard.
Common Misapplication
The most common misapplication is defining cohorts too broadly, such as by year rather than by month. Annual cohorts contain too much variation in acquisition timing to produce reliable retention curves and obscure seasonal acquisition patterns that affect the reliability of the resulting lifetime value calculations.
FFI Standard Reference
This term is defined and applied in Book 2, Section 2.2: The Unit Economics Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Cohort. https://ffistandard.org/glossary/cohort/. 2026.