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Part 2  Strategy and applications

Hurdle rate

According to Novo (2004), hurdle rate refers to the percentage of customers in a group (such 

as in a segment or on a list) who have completed an action. It is a useful concept, although 

the terminology doesn’t really describe its application. Its value is that it can be used to com-

pare the engagement of different groups or to set targets to increase engagement with online 

channels as the examples below show:

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20% of customers have visited in the past 6 months

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5% of customers have made three or more purchases in the year

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60% of registrants have logged on to the system in the year

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30% have clicked through on email in the year.