Cyber Weekend Benchmarking Data: 2023 SaaS and Software Holiday Spend Report -
The Q4 numbers of sales usually surpass other times of the year thanks to year-end holidays and their associated shopping cycles But how much does that trend carry over into the software or SaaS sales? Do they improve B2B business sales as well, or is it more just a benefit for B2C?
is a seller that acts as a record-keeper for more than 3500 businesses that utilize our platform every day to market digital goods globally. We've analyzed aggregate sales data to help you understand how crucial Q4 could be for your software, SaaS or any other digital good commercial.
Although the latest trends in holiday shopping might have started by offering Black Friday deals and spread to Cyber Monday however, the whole weekend is now often referred to as Cyber Weekend -- and sales throughout the quarter generally are strong as consumers get ready for the many holiday seasons. Are you optimizing all possible potential sales in Q4 for your software-related business?
Below, we'll cover:
About Our Data
What is the Source of the data are sourced
supports over 3500 companies that help them sell digital products in over 200 nations and territories around the globe We've narrowed the information we've used in this report to keep it applicable to software as well as SaaS businesses.
The data below are also particular to where sales were made and not the location which location the businesses are situated.
To get the overall statistics for the global market, we chose eight countries that include that is, the United States, Canada, Germany, Great Britain, India, Brazil, Australia, and China for a a broad view of worldwide sales.
When the Data Are From
The data below are pulled from 2018-2022 to give the most recent information while providing trends that are consistent across a five-year period and avoiding any outliers skewing the results unnecessarily.
Also, we utilize a seasonal index to highlight each month's or quarter's sales with respect to the year's weekly or monthly average.
US Year-End trends for SaaS and Software Purchases
The first time we looked through U.S. software and SaaS sales data from 2018-2022 to glean insights on quarterly and monthly sales patterns over the past five years.
After calculating a monthly average then we compare every month with that average to get an approximate percentage. For example, if February's percentage is 90%, this means it is 10% lower in sales compared to the average monthly. If the November sales report shows a percentage that is 111% that indicates that its sales are 11% higher than the average for each month.
5YR US SaaS Average and Software Sales by Month
While sales do peak in November at 11% higher than the average monthly however, the sales for the entire quarter are at their highest all through the year. October is particularly high, with sales being 4% more than the previous month and December at 8% higher.
5YR US Average SaaS and Software Revenues per Quarter
Looking at the quarter's average Sales for Q4 are up by 8% which is enough to make each of the other three quarters are just below the median.
Global Year-End Trends for SaaS and Software Purchases
Moving beyond and beyond the U.S., we combined data with the same characteristics from U.S., Canada, Germany, Great Britain, India, Brazil, Australia, and China. This provides a more clear picture of how late-year software sales could fluctuate across the globe.
In fact, the bump gets bigger.
5YR Global Average SaaS and Software Sales per Month
The global sales rose to a yearly high of 16% more than the average monthly. Similar to the U.S. data above, the months of October and December are the most profitable quarters of the year, with 4and 7 percent increases.
5YR Average Global SaaS and Software Sales per Quarter
From a quarterly perspective, Q4 is 9% higher than the average for Q4 and, yet again, so high as to push all three quarters lower than the mean.
While global Q4 quarterly sales were only 1% higher than sales within the U.S. for the same quarter and November in its own month saw a rise of 16% over those in the U.S.'s 11% jump during the same month- suggesting that November specifically offers a tremendous opportunity for sales across the globe.
5YR SaaS Average and Software Sales per Month for each country
For more detail of how each month's sales break into countries we analyzed the monthly information for eight countries we have included in our global overview. Below is a look at what monthly software sales variations look like based on five years of data for the United States (US), Canada (CA), Germany (DE), Great Britain (GB), India (IN), Brazil (BR), Australia (AU), and China (CN).
Significantly high gains in countries like China and Germany during November indicate a huge chance for SaaS and software businesses to profit in Q4 in particular if they're looking at these countries in a global expansion strategy.
Furthermore, even though U.S. data suggest a less significant increase of 11% in November, it is important to remember the fact that North America accounts for a very huge portion of the world's software and SaaS sales. One study reporting 40% of 2022's worldwide software revenues attributable to North America, and one study estimating a portion of up to 57.5 percentage of 2020 world SaaS market attributed to NA. Therefore, an 11% lift in November in North America in the U.S. could mean a lot more revenue if the U.S. is a part of a larger piece.
B2C vs. B2B
A lot of companies who sell software globally offer the B2C as well as B2B markets, but no matter if your SaaS firm is focused exclusively on either or only one the other, it is beneficial to monitor how Q4 sales performance differs between two markets. The resulting information can help you decide how much to focus marketing and sales efforts within those segments, especially when one market offers bigger opportunity.
The data that resulted show similar trends across the year. Q4 was the best quarter of both of these segments.
B2C sales recorded an average rise of 11% above the quarterly average and is perhaps not surprising given the fact that this season is popular for encouraging consumerismthe word "consumer" is part of the name.
But don't sleep on B2B revenue in the fourth quarter. Even though B2B revenue appears to be marginally more stable over the course of the year than B2C revenue, the 5 percentage increase in the fourth quarter is notable in a spend-happy segment that still takes benefit of deals at the end of the year regardless of whether a buyer is buying either for themselves or their business. Corporate credit cards remain in use by a lot of people, buyers of software and may be looking for a bargain, especially if rigid departmental budgets are a factor in their purchase decisions.
Furthermore, some B2B customers might be seeking to utilize more budgetary funds before the close of the year in order to make sure their budgets are not reduced next year. Or, they could be pushing their teams or departments set up with the right technology before the new year starts. Specific business situations like these can contribute to increased B2B sales in the fourth quarter despite all of the holiday work disruptions.
Cyber-Week Strategies for SaaS and Software Companies
Looking for the most effective ways to make the most of the Q4 bump? No matter if you're targeting B2B or B2C shoppers Here are some strategic ways to increase the number of applications and SaaS sales prior to the close this year.
Offer Partners Custom Coupon Promo Codes
Plus you'll be able to better track how that sales campaign performed in comparison to other coupons.
Aren't able to find partners to give Discount Coupons Customized to? Locate Some!
If you're yet to take the advantage of partnerships with promotional partners The holiday season is a great time to create new partnerships. Find other SaaS and software companies with products that compliments yours. (For instance, if you develop a database software check out companies that produce front-end software.)
Alongside custom coupon codes propose to swap Cyber Weekend promotions to each of their audiences through the use of email messages, site banners, mentions on social media, or other preferred methods that will help both companies boost sales at the end of the year.
Email Your Own Prospects
Even if you choose not to engage in partnership-related promotions- or if that's more of a project for which you'll require more time to plan for Emailing your existing prospect list is a relatively quick and easy tactic to implement.
Prospects aren't able to benefit from sales they don't know about Don't just rely on the banner on your site to attract the attention of purchasers when they go to your site. Inspire them into your website with smart emails about forthcoming, current, and extended deals to grab their attention where they are.
Contact Your Current Customers
Like potential customers, they can't be over-sold when they're not aware about holiday promotions, either.
Below are some possibilities for profit to target your existing user base:
- Upsell add-ons. Analyze user data for customers who utilize your product frequently or most broadly, since they might be most likely to want further features or usability.
- Upsell bigger subscriptions with greater features. Like downloads, if it is possible to identify your product's most powerful customers, you can focus your efforts on people who are most likely to buy more from your product.
- Convert freemium customers to paid subscriptions with an irresistible offer. If you consider freemium to be a major part of your business strategy, then a hefty sales during the holiday season could be the lever to finally convert users who love what they can access to, but who are aware that they could use a lot more of them.
- upsells from individual subscriptions to team subscriptions, and from team-based to enterprise subscriptions. It's not always easy to find out which power users are also evangelists for your product at their own companies, but if you are able to gather contextual information about users (such as that which can be obtained by your internal salesforce) then Q4 is a great time to target businesses with some customer penetration, and you have the chance to gain much more.
- Cross-sell into completely new products. If your business model comprises a variety of standalone products, there's an enormous chance to reach the customer customers of one with deals to buy the next in turn, and vice versa. The greater number of products you own to choose from, the better segments you're able to create and the greater chances you'll have.
- Switch users away from monthly to yearly subscriptions. The English adage "A bird in the hand is worth two in the bush" often applies in business because the revenue that is available to your company right now might be better than a little more money distributed in a gradual manner over the next. Make the most of customers being at a point of buying during Q4 by entice them with a great bargain to cut costs for the future by switching their monthly subscription to a yearly one.
Leverage Social Media
Social media platforms can be an excellent platform to commemorate occasions, which is why sharing holiday-themed content from your company can be a natural fit.
Numerous social media platforms provide advertising options that be targeted at users based on geography or by interests. You should consider taking advantage of the capability to display regional holiday advertisements within the relevant regions or even the capability to show ads to people who have expressed desire to celebrate this holiday on the platform.
In contrast, organic posts on social media -- which can often be viewed by anyone who are following you, regardless of geography -- could be an excellent option to increase sales while not limiting views to a small group of people. Keep in mind, however, that if your fans or audience are very diverse the holiday-related posts you post are also likely to be so.
Give More Exciting Coupons for The Target Geos
If you have higher profitability within a specific region, or just want to enter a new market, then promoting aggressive discounts in specific regions can help you further take advantage of Cyber Weekend sales increases.
To implement this, use GeoIP-based components on your site to promote region-specific discount codes.
You can then use the Store Builder Library to automatically apply those codes in the checkout to improve your conversion rate.
localize Holiday Promotions
Even though Cyber Weekend has become popular all over the world There are a few local holidays that may be more lucrative in the location or country that you're targeting. Events such as Boxing Day can rival more U.S.-centric specials (such such as Black Friday and Cyber Monday) in other countries, such as those in the UK, Australia, and Canada.
Create your own holiday campaign in accordance with geography to ensure you don't miss out on great opportunities in important regions.
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