What is Segment Growth Rate?

This metric tracks the rate of growth in a specific segment over a defined period. You can measure growth in:

• Revenue: ARR or MRR per segment
• Customer count: Number of accounts or logos
• Pipeline: Value or volume of open opportunities

Formula (for revenue):

Segment Growth Rate = ((Current Period Revenue − Previous Period Revenue) ÷ Previous Period Revenue) × 100

Example: If ARR from mid-market customers grew from $1.2M in Q1 to $1.5M in Q2, the Segment Growth Rate is 25%.

You can use the same structure to calculate growth in pipeline or customer count per segment.

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Why It Matters in B2B SaaS

• It shows where demand is accelerating. Helpful for GTM resourcing and planning
• It helps allocate sales and marketing spend. Invest where growth justifies the effort
• It supports territory and quota design. Fast-growing segments may warrant additional headcount or adjusted targets
• It feeds strategic planning. Identifies when to double down on a segment or shift messaging and positioning
• It enables proactive segmentation. Helps RevOps detect trends before they show up in lagging indicators like revenue

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How to Measure Segment Growth Rate

Step 1: Define your customer segments clearly

Step 2: Choose the growth metric (ARR, pipeline, customer count)

Step 3: Compare the current period against a previous comparable period (month, quarter, year)

Step 4: Apply the growth rate formula

Step 5: Segment further by:

• Region or territory
• Deal type (new vs. expansion)
• Product line or pricing tier
• Acquisition channel (inbound vs. outbound)

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Best Practices

• Use consistent definitions. Avoid changing how you classify segments between periods
• Normalize for churn. Net growth (with churn deducted) gives a more accurate picture
• Watch for pipeline inflation. Growth in pipeline without improved win rate or revenue may not be meaningful
• Benchmark across segments. Growth rate is relative—one segment growing at 10% may be outperforming another at 20%, depending on market maturity
• Pair with Win Rate by Segment. High growth + high win rate = ideal segment to prioritize