NAICS Code

What is NAICS Code?

NAICS Code (North American Industry Classification System Code) is a standardized six-digit numerical code used by government agencies and businesses to classify companies by their primary industry and economic activity. Each digit in the NAICS code provides increasing specificity about a company's business type, from broad economic sector to narrow industry sub-classification.

The NAICS system was developed jointly by the United States, Canada, and Mexico to provide a consistent framework for collecting, analyzing, and publishing statistical data about business and economic activity across North America. For B2B SaaS companies, NAICS codes serve as critical firmographic data for market segmentation, enabling precise targeting by identifying companies within specific industries, sub-industries, and economic sectors. Unlike informal industry labels or company self-descriptions, NAICS codes provide standardized classification based on primary business activity, making them reliable filters for account segmentation and go-to-market strategy.

The system contains over 1,000 industry classifications organized hierarchically—the first two digits represent the economic sector (e.g., 54 = Professional, Scientific & Technical Services), additional digits narrow to sub-sectors and industry groups, with six-digit codes identifying specific industries. According to the U.S. Census Bureau, NAICS codes are updated every five years to reflect emerging industries and evolving economic structures, with the most recent update in 2022 adding classifications for new technology sectors including cryptocurrency trading and artificial intelligence. For GTM teams, understanding NAICS codes enables vertical market specialization, competitive intelligence gathering, and precise ideal customer profile definition based on standardized industry classification rather than ambiguous company descriptions.

Key Takeaways

• Standardized Classification: NAICS provides government-backed, consistent industry classification across 1,000+ categories, eliminating ambiguity in company categorization for B2B targeting

• Hierarchical Specificity: Six-digit structure allows flexible targeting from broad sectors (2 digits) to highly specific industries (6 digits), enabling both broad and narrow market segmentation strategies

• Government and Commercial Use: NAICS codes appear in official government databases, commercial data providers, and company records, making them widely available and reliable for enrichment

• ICP Precision: B2B SaaS companies use NAICS codes to define ideal customer profiles with industry precision, identifying target verticals and excluding non-relevant sectors systematically

• Dynamic Updates: NAICS evolves every five years to reflect new industries and economic changes, requiring periodic review of target code lists to include emerging relevant sectors

How It Works

NAICS code classification and application operates through a structured system that assigns companies to industry categories based on their primary business activities and revenue sources.

Code Assignment Process: When companies register with government agencies (IRS, census bureaus, state business registrations), they select or are assigned NAICS codes based on their primary business activity—the economic activity that generates the most revenue. Companies operating multiple business lines receive a primary NAICS code for their main activity and may have secondary codes for other significant activities. This official assignment creates authoritative industry classification that appears in government databases and public records.

Code Structure and Hierarchy: Each digit in the six-digit code adds specificity. For example, code 541511 (Custom Computer Programming Services) breaks down as: 54 = Professional, Scientific & Technical Services (sector), 541 = Professional, Scientific & Technical Services (subsector), 5415 = Computer Systems Design and Related Services (industry group), 54151 = Computer Systems Design and Related Services (NAICS industry), 541511 = Custom Computer Programming Services (national industry). This hierarchical structure allows targeting at any specificity level—broad sector targeting for horizontal solutions or six-digit precision for vertical-specific products.

Data Enrichment and Availability: Commercial data providers append NAICS codes to company records through multiple sources including government business registries, self-reported company information, web scraping of company descriptions matched to NAICS definitions, and manual classification by data research teams. Platforms providing firmographic enrichment include NAICS codes as standard attributes. Saber's API enables teams to discover companies and contacts with specific NAICS codes, enriching prospect lists with accurate industry classification for targeted outreach.

Targeting and Segmentation Application: GTM teams use NAICS codes to filter addressable markets and segment accounts. Marketing operations builds targeted lists by selecting relevant NAICS codes that match ideal customer profile definitions, excluding codes representing poor-fit industries. Sales teams use NAICS filtering to identify vertical-specific opportunities, customize messaging for industry contexts, and prioritize accounts in target sectors. Customer success teams segment accounts by NAICS code to benchmark performance within industries and identify cross-sell opportunities to companies in similar sectors.

Analytics and Benchmarking: Organizations analyze customer concentrations by NAICS code to understand vertical penetration, identify underserved high-potential industries, compare win rates across industries, and assess customer lifetime value patterns by sector. This industry-based analysis informs product roadmap prioritization, vertical go-to-market motions, and resource allocation decisions based on industry performance data.

Key Features

• Six-Digit Hierarchical Structure: Progresses from broad economic sectors (2 digits) to specific industries (6 digits), providing flexible targeting granularity

• Government-Maintained Standard: Officially maintained by U.S. Office of Management and Budget with Canadian and Mexican equivalents, ensuring consistency and authority

• North American Coverage: Consistent classification across U.S., Canada, and Mexico, enabling international market analysis with standardized categories

• Comprehensive Industry Coverage: Over 1,000 industry classifications spanning all economic sectors from agriculture to technology services

• Regular Updates: Revised every five years to incorporate new industries, split growing sectors, and retire obsolete classifications, keeping pace with economic evolution

Use Cases

Use Case 1: Vertical Market Identification and TAM Analysis

B2B SaaS companies use NAICS codes to define total addressable market (TAM) by identifying all relevant industry segments for their solutions. A cybersecurity platform targeting financial services would include NAICS codes 522 (Credit Intermediation and Related Activities), 523 (Securities, Commodity Contracts, and Investments), 524 (Insurance Carriers and Related Activities), and 525 (Funds, Trusts, and Other Financial Vehicles). By counting companies and employees within these NAICS categories using Census Bureau data or commercial databases, teams calculate precise TAM figures including total companies in target sectors, employees within those companies for seat-based pricing models, and estimated total spending on security solutions. This NAICS-based TAM analysis informs investor presentations, strategic planning, and market prioritization decisions with government-backed industry statistics.

Use Case 2: ICP Definition and Prospect Filtering

Marketing and sales operations teams embed NAICS code criteria in ideal customer profile definitions to ensure consistent prospect qualification across channels. An HR tech platform's ICP might specify target NAICS codes including 541 (Professional, Scientific, and Technical Services), 5415 (Computer Systems Design and Related Services), 5416 (Management, Scientific, and Technical Consulting), and 5417 (Scientific Research and Development Services), while explicitly excluding NAICS codes 611 (Educational Services), 813 (Religious, Grantmaking, Civic, Professional Organizations), and 921 (Executive, Legislative, and General Government) due to budget constraints or buying process complexity. Sales teams use these NAICS filters when building prospect lists from data providers, CRM systems auto-score leads higher when NAICS matches target list, and marketing automation platforms suppress campaigns to contacts at companies with excluded NAICS codes, ensuring budget efficiency by focusing only on high-fit industries.

Use Case 3: Vertical Specialization and Industry Messaging

Companies building vertical-specific go-to-market strategies use NAICS codes to segment accounts and customize sales approaches by industry. A project management SaaS company might develop specialized solutions and messaging for NAICS 236 (Construction of Buildings), NAICS 238 (Specialty Trade Contractors), and NAICS 541310 (Architectural Services), creating industry-specific landing pages referencing construction workflows, case studies featuring companies in those NAICS codes, and sales playbooks addressing construction-specific pain points like project delay management and subcontractor coordination. Marketing teams create separate nurture tracks for leads from different NAICS categories, personalizing content based on industry context. Sales teams specialize by NAICS code—reps handle specific industry verticals, develop deep sector expertise, and reference industry-specific regulatory requirements during discovery calls, improving win rates through relevant, contextual selling approaches.

Implementation Example

Here's a practical framework for implementing NAICS code segmentation in B2B SaaS GTM operations:

NAICS Code Targeting Strategy

NAICS-Based Market Segmentation Workflow
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

NAICS Code Selection Template for HR Tech SaaS

Primary Target NAICS Codes (High Priority):

Secondary Target NAICS Codes (Expansion Opportunities):

Excluded NAICS Codes (Poor Fit):

Implementation Workflow

Step 1: NAICS Code Research and Selection

Using U.S. Census Bureau NAICS search tool, identify relevant codes:
- Analyze existing customer base to find common NAICS codes
- Review NAICS code hierarchy to identify related industries
- Evaluate company counts and employee totals per code for TAM sizing
- Validate codes align with product-market fit and win rate data

Step 2: CRM and Data Enrichment

Append NAICS codes to account and lead records:
- Integrate data providers (ZoomInfo, Clearbit, Saber API) that provide NAICS enrichment
- Configure automatic NAICS lookup on new account creation
- Backfill existing database with NAICS codes through batch enrichment
- Create custom NAICS fields: Primary NAICS Code (6-digit), NAICS Sector (2-digit), NAICS Description (text)

Step 3: Segmentation Rules and Scoring

Build NAICS-based qualification logic:

Lead Scoring Model with NAICS:

Primary Target NAICS (5415, 5416, 5221, 5242, 6215): +20 points
Secondary Target NAICS (5413, 5418, 5511): +10 points
Excluded NAICS (611, 813, 921-928, 722, 812): -25 points (auto-disqualify)
Missing NAICS Data: 0 points (neutral, research required)

Account Segmentation Rules:
- Target Vertical: Primary NAICS matches target list + revenue >$10M + employees >100
- Expansion Opportunity: Secondary NAICS + existing positive engagement signals
- Not a Fit: Excluded NAICS → route to disqualification queue

Step 4: GTM Activation

Activate NAICS segmentation across GTM functions:

Marketing:
- Create industry-specific landing pages for top 5 primary NAICS codes
- Build separate nurture streams by NAICS sector (professional services, financial services, healthcare)
- Exclude contacts with disqualified NAICS codes from paid advertising audiences
- Develop case studies featuring customers from target NAICS categories

Sales:
- Route leads to reps specialized by NAICS vertical
- Create industry-specific battle cards with NAICS-based competitor intelligence
- Customize discovery question frameworks by NAICS code
- Track win rates by NAICS to optimize target list over time

Customer Success:
- Benchmark customer health scores within NAICS peer groups
- Create industry-specific onboarding tracks for top NAICS segments
- Develop vertical-specific success plans addressing industry pain points
- Identify cross-sell opportunities to companies in similar NAICS codes

NAICS Code Lookup Resources

Official Sources:
- U.S. Census Bureau NAICS Search: https://www.census.gov/naics/
- Statistics Canada NAICS: https://www.statcan.gc.ca/en/subjects/standard/naics/2022/index
- INEGI (Mexico): https://www.inegi.org.mx/

Commercial Data Providers:
- Saber API: Company discovery and enrichment with NAICS codes
- ZoomInfo, Clearbit, D&B Hoovers: Firmographic data including NAICS classification
- Data Axle, InfoUSA: Business lists filterable by NAICS codes

This framework enables precise industry targeting while maintaining flexibility to adjust NAICS selection based on win rate analysis and market feedback.

Related Terms

• Firmographic Data: Company characteristics including industry classification, of which NAICS codes are a critical component

• Account Segmentation: The process of categorizing accounts into groups, often using NAICS codes as primary segmentation criteria

• Ideal Customer Profile: Detailed description of best-fit customers, typically including specific NAICS codes for target industries

• Technographic Data: Technology usage data that complements NAICS codes for comprehensive account understanding

• Account Enrichment: Process of appending additional data attributes including NAICS codes to account records

• Total Addressable Market: Market sizing calculation often performed using NAICS code-based company counts and statistics

• Vertical Market: Industry-specific market segments typically defined using NAICS code groupings

• ICP Scoring Model: Quantitative framework for measuring account fit, frequently incorporating NAICS code matching as scoring criteria

Frequently Asked Questions

What is a NAICS code?

Quick Answer: A NAICS code is a six-digit number assigned to companies to classify their primary industry and economic activity using a standardized system maintained by U.S., Canadian, and Mexican government agencies.

NAICS (North American Industry Classification System) codes provide consistent, government-backed industry classification across over 1,000 business categories. The six-digit structure progresses from broad economic sectors to specific industries—for example, 541511 represents "Custom Computer Programming Services" within the broader "Professional, Scientific & Technical Services" sector. B2B companies use NAICS codes for market segmentation, competitive analysis, and ideal customer profile definition because they provide standardized, objective industry categorization rather than ambiguous company descriptions.

How do I find a company's NAICS code?

Quick Answer: Find NAICS codes through commercial data providers (Saber, ZoomInfo, Clearbit), government databases (SEC filings, census data), company websites (often listed in about/investor sections), or by looking up the company's business description in the Census Bureau's NAICS search tool.

The most efficient method for B2B SaaS teams is using firmographic enrichment platforms that automatically append NAICS codes to CRM records. Saber's API enables company discovery filtered by NAICS codes and enriches contact records with associated company NAICS classification. For manual lookup, visit the U.S. Census Bureau NAICS search and search by company name or industry keywords to identify the appropriate six-digit code. Public companies often disclose NAICS codes in SEC 10-K filings under business description sections. Data enrichment tools provide the most scalable approach for maintaining accurate NAICS classification across large account databases.

How many digits should I use for B2B targeting?

Quick Answer: Use 4-digit NAICS codes for broad industry targeting (e.g., all software companies) and 6-digit codes for precise vertical specialization (e.g., custom software programming vs. software publishers vs. SaaS platforms).

The appropriate specificity depends on your product's market focus and vertical strategy. Horizontal B2B solutions serving multiple industries often target at 2-3 digit levels (e.g., all "Professional, Scientific & Technical Services" = NAICS 54), casting wide nets across related sectors. Vertical-focused solutions require 5-6 digit precision to identify specific industry subsegments with unique needs. For example, a compliance solution for financial services would distinguish between NAICS 522110 (Commercial Banking), 523110 (Investment Banking), and 524114 (Direct Health Insurance Carriers) because regulatory requirements differ significantly. Start with 4-digit codes to establish initial target industries, then refine to 6-digit precision as you develop vertical-specific offerings and specialized sales expertise.

Are NAICS codes the same as SIC codes?

No, NAICS codes replaced the older Standard Industrial Classification (SIC) system in 1997. NAICS provides more detailed classification with six digits versus SIC's four digits, better represents service and technology industries that were poorly categorized in SIC, and uses a more logical hierarchical structure. While some legacy systems and data sources still reference SIC codes, NAICS has become the standard for government statistics, business data, and B2B targeting. Most data providers offer both codes for compatibility, but new implementations should prioritize NAICS codes given their superior specificity and maintenance. The U.S. government no longer updates SIC classifications, making NAICS the authoritative industry classification system for current use.

How often do NAICS codes change?

The NAICS classification system undergoes comprehensive review and update every five years to reflect new industries, economic changes, and evolving business models. The most recent major update occurred in 2022, with the next scheduled for 2027. Updates typically add new codes for emerging industries (recent additions included cryptocurrency exchanges and AI development services), split growing sectors into more granular categories, combine declining industries, and revise definitions to reflect current business practices. For B2B SaaS teams, this means reviewing target NAICS code lists every 2-3 years to ensure you're not missing newly classified industries relevant to your ICP. Subscribe to Census Bureau NAICS updates or consult with your data provider to understand how classification changes affect your target market definitions and ensure continued accuracy in industry-based segmentation.

Conclusion

NAICS codes provide B2B SaaS companies with government-backed, standardized industry classification that eliminates ambiguity in market segmentation and account targeting. Unlike informal industry labels or self-reported company descriptions that vary widely, NAICS codes offer consistent categorization based on primary economic activity, enabling precise ideal customer profile definition and reliable market analysis. The hierarchical six-digit structure provides flexibility to target broadly across economic sectors or narrow focus to specific industry subsegments, supporting both horizontal solutions serving multiple industries and vertical-specialized offerings addressing niche market needs.

GTM teams leverage NAICS codes throughout the customer lifecycle for strategic advantage. Marketing operations uses NAICS filtering to build high-precision target account lists, suppress advertising spend on poor-fit industries, and create vertical-specific content that resonates with industry contexts. Sales organizations segment territories by NAICS code, develop industry expertise within specialized rep teams, and customize discovery approaches based on sector-specific challenges and regulatory environments. Revenue operations teams analyze win rates, deal velocity, and customer lifetime value by NAICS category to identify high-performing verticals worthy of increased investment and underperforming sectors requiring strategy adjustment or de-prioritization.

Looking ahead, NAICS code utility will increase as B2B companies adopt more sophisticated vertical strategies and industry-specific product packaging. The system's regular five-year updates ensure continued relevance as new industries emerge—recent additions of codes for cryptocurrency, artificial intelligence services, and digital platforms demonstrate NAICS evolution alongside economic change. Companies integrating NAICS classification into account enrichment workflows through platforms like Saber gain competitive intelligence advantages, identifying target accounts with precision while competitors rely on less reliable industry categorization methods. As vertical specialization becomes increasingly critical for B2B SaaS differentiation, NAICS codes serve as the foundational taxonomy enabling systematic, data-driven industry focus across marketing, sales, and customer success operations.

Last Updated: January 18, 2026