Learn More From Q4: 2022 SaaS and Software Holiday Spend The Report
The fourth quarter is by far the most significant quarter for companies that develop software around the globe.
We confirmed this by reviewing sales data from over 300 SaaS and software companies who use our platform for billing. We discovered that Q4 is one of the top-performing quarters of the year for both commercial and consumer sales.
Here's our challenge to your company: Are you taking advantage of the quarter? In November, software companies are able to see anywhere from 11% to 24% more than the average monthly revenue.At the conclusion in the calendar year consumers are eager to pay for subscriptions and software- are you using your marketing budget effectively?
In this report, you'll find:
- Changes to US software sales per the month and by the quarter
- How software sales vary across the globe throughout the year
- A comparison of B2C and B2B revenue from quarter to quarter
- Tips on taking advantage of seasonal holidays and occasions around the globe
About Our Data
Its billing platform is used by more than 3500 SaaS as well as software businesses that have customers found in over 200 different countries and territories. In this guide, we'll focus on where the sales happen in contrast to where the business is.
We'll also be looking at the monthly average revenue of all sales that are made in the country of a given country, with a seasonal index which measures the month's earnings against the typical revenue for one particular year.
It's suggested by our data that it's worthwhile having Black Friday, Cyber Monday as well as other promotions for the holidays between November and the end of December.
However, the "holidays" could be greater than Black Friday and Cyber Monday. If you look at the world from a global perspective you will find a myriad of holidays you can leverage for promotions that will generate revenue.
All you need is to know which part of the globe to go.
US End-of-Year Trends SaaS and Software Purchases
In the U.S., many industries have a substantial increase in sales at the end season. As an example, for instance, hobby, toy, and gaming stores make 35 percent of their annual revenues in the period of the holiday season. But is this true for SaaS and software?
Using five years of data that we analyzed, we examined the median monthly income of all software sales made on the platform in the U.S. We then compared each month to the yearly average.
We see that sales are at their peak in November and continue to be strong through to the end of the year.
Average US SaaS and Software Sales
Again, looking at the entire quarter, we see the fourth quarter to be better than the previous three.
US SaaS and Software Revenues by Quarter
The data is exclusive to the U.S. What about the global market?
Global Trends at the End of Year for SaaS and Software Purchases
For a better understanding of consumer behaviour across the globe, we examined SaaS as well as software purchases in eight important markets including that of the U.S., Canada, Germany, Great Britain, India, Brazil, Australia as well as China.
When we looked at October through December's revenue in comparison to the average monthly revenue for the year We did notice an increase in revenue in November, October, and December, with sales peaking in November . the peak is significantly higher on a global scale.
Average global SaaS and Software Sales
Keep in mind that the numbers reflect where the client is situated, not on the location of the company's headquarters, suggesting that those Black Friday and Cyber Monday discounts actually result in the world to increase revenue for SaaS and software companies.
Average Monthly Revenues by the Country (2016-2020)
When we break down the numbers further it is clear that, while Q4 continues to be the strongest period for everyone, the magnitude differs significantly from one country to the next nation. In the case of nations we looked at, China and Germany had the highest average increases at the end of November.
B2B Versus B2C End Of Year Performance
There's plenty of in-depth speculation about B2B sales slowing down in the fourth quarter. We suspect this is true for sales processes with more lengthy buying cycles or the account-based model. When we take a take a look at B2B SaaS or software sales We find that the last quarter is actually the best quarter of the year. The average is 114% higher than the quarterly average.
For a comparison of the results of B2B against B2C businesses, we randomly selected 30 users that only offer B2B and B2C markets from across the world. Then, we looked at the revenue they earned from 2019 to 2020, and 2021 to identify trends.
It is evident that the fourth quarter is the most successful quarter for B2B as well asB2C businesses.
B2B Versus B2C Quarterly Sales
What can these findings provide us with regard to how SaaS and software companies should prepare for the holiday season? In the following segments, we'll provide the best practices for end-of-year campaigns. We'll also provide extra data to help you identify alternative occasions to increase revenues all through the year.
5 Christmas Strategies For SaaS And Software Companies
1. Think about different marketing strategies for each The Region or Country
If you run promotions in different countries or regions consider localizing your campaigns.
In many countries, the rise in sales in November is observed during Cyber Week, which is recognized by several countries around the globe. That includes Germany where there is the second highest November increase among the nations we have compared.
But the biggest lift was derived in China which is a nation where Cyber Week is not as significant as Singles' Day, which falls on November 11. According to our analysis we observed a significant growth in sales China during Singles' Day.
2. Include Regional and Other Competitive Holidays to Your Campaign Calendar
Our data reveals opportunities for other times 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 shopping day, the second-largest ecommerce day in the country. Single's Day is the largest.
Many companies conduct promotions during Black Friday and Cyber Monday. But don't forget that there are many other holidays all through the year which you can use to drive revenue.
If your product has great adoption in a specific region It could be beneficial to develop a regional calendar of holiday events for the area and then create a regional offer accordingly.
We can't tell you the future of your specific business, but you know your market. Check out your records and observe what trends and patterns you discover.
Generally, data from regions can give you a greater understanding of the ROI (ROI) in any advertising program you are running.
Special Holidays or Major Shopping Days Of Note
Here are a few to think about. There are many others in certain zones, and we recommend you to research activities in your regions that you market to.
- Chinese New Year/Spring Festival -The date is usually between January 21 and February 21
- is celebrated in China as well as other countries that have significant Chinese or Sinophone population
- International Women's Day -- March 8
- National holiday in 27 nations across West, Central, and East Africa, Eastern Europe, Germany, China and North Korea
- Singles' Day -- November 11 An Anti-Valentine Day holiday
- It is celebrated in Southeast Asia and Western Europe
- Diwali -- the 15th day of the Hindu month Kartik (Usually in late October or early November)
- Celebrated throughout South Asia, Southeast Asia, Caribbean
- Click Frenzy -- The Second Tuesday in November
- Australia
- Black Friday -- The Last Friday in November
- North America, much of Western Europe, China, large portions of Africa, Brazil, and Mexico participate
- Cyber Monday
- The majority of countries who participate in 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, most of Southeast Asia, South Africa
- Boxing Day -- December 26
- Celebrated in Great Britain, Australia, New Zealand
- International Workers Day or Labor Day -- May 1 is a major holiday in Europe, Russia, Africa, Central and South America; the first Monday in September across the U.S. and Canada; and the first Monday in October in Australia
- Widely celebrated around the globe
3. Promotional Marketing Efforts can Roll Over into Q1
While software sales slow down in the beginning of 2018 but the decline may not be as steep as you'd like. Sales in January remained good (above 90%) in areas like the US, Great Britain, Germany and Canada. However, the biggest drop took place in February.
Many sales and marketing teams are able to relax at the beginning of the quarter to rest or recharge. However, there's an opportunity to be noticed during a slower season.
If you're running campaigns during the fourth quarter, you're not only competing with those who are directly competing with you. When the time comes to close the year, the inboxes of people's social media feeds are flooded with holiday promotions. More than any other time of year it's an opportunity to be noticed.
January and February may be the ideal time to experiment with some new and exciting things.
4. Monitor Your Sales with the Seasonality Index
Track the success of your campaigns year-over-year so that you can ensure that an increase in spend doesn't exceed the increase in revenues.
Month-over-month (MoM) or year-over year (YoY) increase can tell you much, but those aren't the only ways to evaluate the performance.
A seasonality index like the one employed in this article illustrates how one month compares with the normal one in the course of a year.
We suggest keeping track of the results of your annual campaigns YoY, and then comparing the results against the other campaigns you are running throughout the year.
Remember that an increase in monthly revenue may not give you all the information needed to judge the success of a campaign. As an example, based on your time zone and the date orders are made Cyber Monday sales can extend into December. If you look only at the sales figures for November, you may not see the whole picture.
As you're planning your promotions, here are a few others KPIs we suggest tracking.
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5. Focus On Customers Appreciation
If you're not going to double your revenues at the conclusion of the year, the holidays are the perfect opportunity to improve customer relationships, especially in the case of an SaaS product.
Use the holidays to show appreciation to your clients who are already VIP or regular customers with special incentives, giveaways, gifts, or personalized offers. Here are some suggestions from other SaaS as well as software businesses have successfully used:
- Create an "Holiday Bundle" promotion using your most popular add-ons or even a complementary course.
- Give a huge discount on subscription plans or upgrading software.
- Run a gift promotion in which customers are urged to purchase subscriptions or software to give to their family and friends.
- You can run an "Treat Yourself" promotion encouraging clients to purchase something to themselves for the holiday season.
- Offer a year-long subscription or upgrade to those participating in a loyalty program.
- Do something special for email newsletter subscribers.
4. Reward your affiliates
A lot of affiliates, be they corporations or individuals, might be planning on pushing all the way through the Christmas season, which makes it the perfect opportunity to reward them with a larger commission rate or a particularly good deal that they can recommend.
What Can I Do?
Below are some ways that's complete-stack marketplace will help you through the holidays and beyond.
1. Support Inquiry Management
If you are expecting a substantial increase in orders during the Christmas season Are you and your customer service team ready for this? can manage purchase-related support inquiries on behalf of you, which will save the time and funds to focus on increasing sales over the festive season.
2. Localized languages, currencies as well as payment methods
To be competitive and gain traction in the marketplace of the world, your business must offer an experience for shopping that is localized and accommodates a broad range of regulations, languages as well as local customs.
The preferred payment methods vary by regions. If you are able to observe a pattern of the most prominent regions on your site analytics, it will help select the payment options you should automatically offer to international customers. This includes digital wallets like PayPal as well as credit cards as well as wire transfer. By offering the preferred method of payment, you'll be able to reduce abandoned carts and decreases in payment.
It offers localized checkout options that automatically converts your product's prices to the customer's native currency, as well as their preferred language and provides a variety of payment alternatives.
3. Global Tax Management and Regulation Compliance
Global shoppers don't want unexpected tax or regulatory requirements, which can be extremely disruptive to the purchase process.
Automatically calculates tax, VAT, and GST in the checkout and ensures regulations such as GDPR and PSD2 are automatically applied for the affected transactions.