In our school system we use the Scott Foresman Reading Street program. I like to begin each small group with fun "warm-up" activities. In addition to segmenting words, I like to include a variety of blending activities. These activities are usually very quick and simple. They generally involve words from that day's story or nonsense words.
Recently I purchased some tap lights at the Dollar Tree. I am using them for a simple warm up game. I start by giving two students a tap light and a word card. Their cards remain face down until I say "start." After they flip their card they practice reading their word. Once they know their word they hit the tap light. The first student to hit their light and read the word correctly gets a sticker (the student who taps in second must also read their word).
After each couple has their round, they pass the tap lights to the next two students. These students get two different cards. We continue this until everyone has had a turn.
My students absolutely loved this! Even if they didn't win a sticker they were so excited to press the tap light that their was no sulking or pouting. This was a really quick and simple way to practice blending, and using the tap lights was a great motivator.