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What it is

segment_expansion_rate is the share of a segment’s accounts that pay you more in a given month of their life than they did in their first month. It is a count of accounts, not an amount of revenue — an account that grew a little and one that grew tenfold count the same. It is a ratio, not a percentage: 0.21 means 21% of the accounts that reached that month were paying more than when they started. At month 1 it is always 0. It is not one number for a segment. There is a value for every month of an account’s life, from 1 to 36. The Segment revenue paths page reads it at months 12, 24 and 36 — how many accounts have grown by the end of their first, second and third year.

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How it is calculated

Measured. It comes out of Beacon’s calculation layer, where the rules are fixed and written down, and the same billing always produces the same line. Definitions sets out what the three method words mean.
Every way of paying more counts: more seats, a higher plan, a price rise, an add-on, a second product. An account that left counts as not expanded, and stays in the bottom half of the ratio. An account that dipped and then rose above its first month counts as expanded in the months it is above it. Accounts are lined up by their own first paying month. An account counts at month m only once it has reached month m, only closed months are read, and an account counts in its current confirmed segment. An account in no confirmed segment is not counted.

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Where it comes from

Billing, through your confirmed segments. Billing is the required connection; without at least one confirmed segment there is no line to draw. It belongs to the Segments module and is drawn on the Segment revenue paths page, beside the share of accounts on two or more of your products — a narrower figure, because a second product is only one way of paying more.
No read interface or MCP tool serves this value yet — the table above publishes the shape ahead of the doors.
Where the choice is made. This value is not open by default on any door. The choice happens when a reader grant that reaches it is issued or widened, when you subscribe to events, or when you turn the CRM property on. Whoever makes it is shown who becomes able to see the value, and their yes is recorded — holding a grant is no longer enough on its own.

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How fresh it is

Worked out every night, after your billing loads, over every closed month. A point can move after it is first drawn: as younger accounts reach a month, that month is struck again over a larger group, and an account moving to another segment takes its history with it.

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Currency and rounding

No currency applies — it is a ratio of two counts. No rounding rule is set for this value. Today Beacon holds it to three decimal places — 0.214 — and whether that stays is not yet settled. A screen may show 21%; compare two points at the precision you received them.

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What changes it

Accounts in the segment paying more or less than when they started, or leaving. Accounts reaching a new month of their life. Your segment approver changing which segments are confirmed.

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What it is not

  • Not a percentage. 0.21, never 21.
  • Not an amount. How much the growing accounts added is in segment net revenue retention and, for your company in a period, in expansion recurring revenue.
  • Not the share of accounts on two or more products. That counts one kind of growth; this counts every kind.
  • Not expansion readiness. That is a forward-looking score for one account; this is what a segment’s accounts already did.
  • Not a forecast. Every point is billing history.