Learn More From Q4: 2022 SaaS and Software Holiday Spend The Report
The fourth quarter is by far the most important quarter for companies that develop software around the globe.
We confirmed this by reviewing sales data from over 300 SaaS and software firms which use our bill-pay platform. We discovered that Q4 is most definitely the highest-performing quarter of the year for both business and consumer sales.
And here's our question to you: Are you really benefitting from this quarter? In November, software companies have seen 11%- 24% over the average monthly revenue.At the end of the year, customers are willing to invest money for subscriptions and softwareAre you using the marketing budget wisely?
In this report, you'll find:
- Changes to US software sales by quarter and month
- The way software sales differ across the globe throughout the year
- A comparative between B2C and B2B B2B sales from quarter to quarter
- Tips for making the most of holidays and other seasonal opportunities all over the world
About Our Data
's billing platform supports over 3500 SaaS and software firms that have customers found in over 200 different countries and territories. In this article, we'll focus on where sales take place in contrast to where a company is located.
Also, we'll be looking at the average monthly revenue of all sales that are made in the country of a given country, using a seasonal index, which measures the month's earnings against the median revenue of the year in question.
The data we have collected suggests running Black Friday, Cyber Monday as well as other promotions for the holidays between November and the end of December.
However, the "holidays" can be much more than Black Friday and Cyber Monday. If you look at the world from a global perspective you will find a myriad of occasions to promote promotions and increase profits.
It's just a matter of knowing where in the world to go.
US End-Of-Year Trends For SaaS And Software Purchases
In the U.S., many industries see a significant lift in sales toward the close season. For example, hobby, toy, and game shops earn 35 percent of their overall sales during the holiday season. However, is this the case for SaaS and software?
Utilizing five years of data, we looked at the median monthly income from all software sales that were made through 's platform to customers from the U.S. Then we looked at the comparison of each month to the yearly average.
Sales are at their peak in November and remain strong until the close of the year.
Average US SaaS and Software Sales
Looking at the whole quarter it is clear that the fourth quarter to be stronger than the other three.
US SaaS and Software sales by quarter
That's sales data exclusively in the U.S. But what about the global market?
Global Trends at the End of Year for SaaS And Software Purchases
To understand consumer behavior worldwide, we studied SaaS and software purchases across eight major markets, including that of the U.S., Canada, Germany, Great Britain, India, Brazil, Australia, and China.
Once again, when we examined the October-to December revenue compared to the annual monthly average and observed an increase in revenue in November, October as well as December. sales peaking during November, and the highest point is much higher on a global scale.
Average Global SaaS, Software and Sales
Be aware that these figures are based on where the customer is in, and not where the corporate headquarters. This suggests these Black Friday and Cyber Monday discounts actually result in a global increase in revenue for SaaS and software companies.
Average Monthly Revenue per Country (2016-2020)
As we analyze the data further, we see that while Q4 is still the most robust quarter everywhere, the lift varies significantly from country to country. In the case of countries we compared, China and Germany had the highest average increases at the end of November.
B2B Versus B2C End Of Year Performance
There's lots of in-depth speculation of B2B sales slowing during the fourth quarter. We suspect this is true when it comes to sales processes that feature more lengthy buying cycles or accounts-based approaches. When we take a examine B2B SaaS as well as software sales in general We find that the final quarter actually is the most profitable quarter in the entire year with an average 114% increase over the quarter-to-quarter average.
For a comparison of the results of B2B in comparison to B2C firms We randomly picked 30 customers that exclusively serve B2B as well as B2C markets around the world. Then, we looked at the revenue they earned from 2019 to 2020, and 2021 to identify patterns.
As you can see, the fourth quarter was an absolute winner for B2B andB2C firms.
B2B vs B2C Quarterly Sales
What do these insights reveal about how SaaS and software companies should prepare for the holiday season? In the coming segments, we'll provide the best techniques for the final days of the year. And we'll show you some extra data to help you discover other ways to boost profits throughout the year.
5 Holiday Strategies For SaaS And Software Companies
1. Take a look at different strategies to market for Country Or Region
If you are running campaigns across multiple countries or regions, think about localizing your promotions.
Many countries' increase in sales during November usually occurs during Cyber Week, which is celebrated by numerous countries around the world. This includes Germany, which has the second-biggest November lift of all the countries we studied.
The biggest boost came from China which is a nation that Cyber Week is not as significant as Singles' Day, that falls on the 11th of November. According to our analysis we observed a significant increase in sales in China for Singles' Day.
2. Incorporate Regional or Other Competition-based Holidays to your Campaign Calendar
Our research reveals the potential in other months of the year, as well. As an example, although revenue dipped in June in the majority of countries that we examined, it increased in China possibly because of the annual 618-day shopping festival that is second in terms of ecommerce day in the country. Single's Day is the largest.
Many companies conduct promotions around Black Friday and Cyber Monday. Don't forget, there are many other celebrations throughout the year that you could leverage to drive revenue.
If your product is gaining great acceptance in a particular region It could be beneficial to create a regional calendar of holidays for the region and develop a special regional offering in accordance with.
It's impossible to predict what's going to happen to the specific company however, you are aware of your markets. Take a look at the data you have and look for patterns and trends you find.
The general rule is that regional information can give you a greater understanding of the ROI (ROI) for every marketing campaign that you conduct.
Holidays Or Significant Shopping Days Of Note
Here are some ideas to think about. There will be many more in specific areas, and we encourage you to look into specific events that are happening in the areas you target.
- Chinese New Year/Spring Festival- Always falls between January 21 and the 21st of February
- It is popular in China as well as other countries that have significant Chinese or Sinophone populations
- International Women's Day -- March 8
- National holiday celebrated in 27 countries across West, Central, and East Africa, Eastern Europe, Germany, China and North Korea
- Singles' Day -- November 11 is an Anti-Valentine Day holiday
- Celebrated in Southeast Asia and Western Europe
- Diwali is the 15th of December in the Hindu month Kartik (Usually the end of October or in the early part of November)
- The is famous in South Asia, Southeast Asia, Caribbean
- Click Frenzy -- the second Tuesday of November
- Australia
- Black Friday -- The Last Friday of November
- North America, much of Western Europe, China, large portions of Africa, Brazil, and Mexico participate
- Cyber Monday
- Most countries that participate on Black Friday are also interested in Cyber Monday.
- Christmas -- December 25
- North America, most of Easter and Western Europe, Australia, Colombia, Venezuela, Brazil, Pakistan, India, Japan, Hong Kong, the majority of Southeast Asia, South Africa
- Boxing Day -- December 26
- It is celebrated throughout Great Britain, Australia, New Zealand
- International Workers Day or Labor Day -- May 1 across Europe, Russia, Africa, Central and South America; the first Monday in September in the U.S. and Canada; and the very first Monday in October in Australia
- The HTML0 is widely praised around the globe
3. Promotional Strategies Can Be rolled into Q1
While software sales slow down in the beginning of this year but the decline may not be as steep as you'd hoped. Sales in January remained good (above 90%) in the US, Great Britain, Germany, and Canada. However, the biggest drop took place in February.
The majority of marketing and sales teams have a break at the beginning of the quarter to rest or recharge. There's also a chance to stand out even in the midst of a more competitive time.
When you run campaigns during the fourth quarter of the year, you're not only competing with those who are directly competing with you. As the year comes to an end, year, the inboxes of people's social media feeds overflow with Christmas-related promotions. In the most popular season, you're competing for attention.
The months of January and February could be an ideal time to test some new and exciting things.
4. You can track your sales using an Index of Seasonality
Monitor the effectiveness of your campaign year after year to ensure that the growth in expenditure doesn't exceed the increase in sales.
The month-over-month (MoM) as well as year-over-year (YoY) growth tells you many things, but they're not the only ways to evaluate your performance.
An index of seasonality similar to the one we used in this guide illustrates how one month compares with the normal month in a year.
We recommend tracking the results of your annual campaigns YoY, and then comparing the results against other campaigns that you have run through the year.
Be aware that an increase in monthly revenues may not provide an accurate picture of effectiveness of an advertising campaign. For instance, depending on time zones and when purchases are processed Cyber Monday sales could last into December. If you only look at sales for November, you may not see the entire image.
As you're planning your promotions In the process of planning your promotions, we've included a few additional KPIs that we would recommend keeping track of.
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5. Concentrate On Customer Recognition
Even if you're not doubling your profits at the close of the year holiday season is the ideal opportunity to improve customer relationships, especially if you have a SaaS product.
Take advantage of the Christmas season to express your appreciation to current or loyal customers by offering special incentives, giveaways, gifts, or personalized offers. Here are some ideas which others SaaS and software firms have successfully used:
- You can run an "Holiday Bundle" promo using the most popular add-ons or even an additional training.
- Offer a great discount on a subscription plan or an upgrade to software.
- Create a promotion for gifts encouraging customers to buy subscriptions or software for their friends and family.
- Run a "Treat Yourself" promotion encouraging customers to buy something to treat themselves at the time of the holiday.
- Offer a year-long subscription or upgrade to those in a loyalty or referral program.
- Make something extra special to email newsletter users.
4. Reward your affiliates
Many affiliates, whether they're individuals or companies, may be planning to push through the holiday season, which makes it an ideal moment to reward them by offering an increased commission or an especially attractive offer that they can promote.
How Can Help
Below are some methods that's fully-stack platform for commerce will help you through the season of giving and even beyond.
1. Support Managers of Inquiries
If you are expecting a substantial rise in sales during the holidays Are you and your customer service team ready? They can handle support related to purchases for you, saving the time and funds that can be focused on selling more during the season of giving.
2. Localized Languages, Currencies and Payment Methods
To be competitive and gain traction in the marketplace of the world Your business needs to provide an online shopping experience that accommodates a broad range of language, rules and preferences local to the area.
The preferred payment methods are different depending on the location. If you discern a trend in popular regions in your website analysis, you will be able to select the payment options that you can offer automatically to global shoppers. These include digital wallets such as PayPal as well as credit cards and wire transfers. If you offer the most popular method of payment, you'll be able to reduce cart abandonment and payment declines.
provides a checkout service that is localized that automatically converts your product's pricing information to your customer's preference for local currency as well as language . It also provides a variety of payment alternatives.
3. Global Tax Management And Regulation Compliance
The global consumer doesn't like unexpected tax or regulatory requirements, which can be extremely unsettling to shoppers.
automatically calculates taxes, VAT as well as GST at checkout and ensures laws like GDPR as well as PSD2 are automatically applied for affected transactions.