Cyber Weekend Benchmarking Information: 2023 Software and SaaS Holiday Spend Report -
The Q4 numbers of sales usually surpass other times of the year thanks to year-end holidays and the associated shopping cycle -- but how much of this trend carry over into Software and SaaS sales? Does it help 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 companies that use our platform each day to sell digital products globally. We've examined aggregate sales data to provide you with insights on the importance of Q4 to be to your SaaS, software, or other digital goods commercial.
Although the latest trends in holiday shopping could have begun with Black Friday deals and spread into Cyber Monday however, the whole weekend is often called Cyber Weekend -- and overall sales tend to be strong as people are getting ready for their many Christmas celebrations. Are you maximizing all Q4 sales opportunities for your software-related business?
Below, we'll cover:
About Our Data
Where Data Are From? data are sourced
supports over 3500 companies to help sell digital goods across more than 200 countries and territories globally However, we've narrowed our data used in this report to keep the report applicable to software and SaaS firms.
The data below are also particular to where sales took place, not in the location where the company is located.
To get the overall statistics We selected eight nations that include that is, the United States, Canada, Germany, Great Britain, India, Brazil, Australia, and China in order to provide the full picture of the sales around the world.
If you are Using the Data are From
The data below are pulled from 2018-2022 to give the most recent information while providing trends that are constant over a 5-year timeframe and avoiding any outliers skewing the information unnecessarily.
Additionally, we use a seasonal index to highlight every quarter's or month's sales in comparison to the annual weekly or monthly average.
US year-end trends for SaaS as well as Software Purchases
We first looked at U.S. software and SaaS sales statistics from the years 2018 to 2022 in order gain insight into monthly and quarterly sales patterns over the past five years.
After calculating a monthly average and comparing the month's sales to this average to determine the percentage. In the example above, if February shows a percentage of 90%, that means it is 10% more expensive in terms of sales when compared with the monthly average. If November shows a percentage at 111% that means its sales are 11% higher than the average for each month.
5YR average US SaaS and Software Sales by Month
Although sales peak in November, with 11% more than the average monthly and sales across all three months in Q4 are at their highest all through the year. The highest sales are in October, at 4% higher and December averaging 8% more.
5YR Average US SaaS and Software Revenues by Quarter
When looking at the average of quarterly sales, Q4 sales are higher by 8 percent which is enough to make all three quarters falls below the mean.
Worldwide Year-End Trends in SaaS and software purchases
Going beyond the U.S., we combined information with similar characteristics from U.S., Canada, Germany, Great Britain, India, Brazil, Australia as well as China. This provides a more clear understanding of the way late-year software sales could fluctuate across the globe.
The bump actually grows larger.
5YR average Global SaaS and Software Sales by Month
The global sales rose to an annual high of 16% higher in November compared to the month-to-month average. Like above U.S. data above, November and December complete with the top quarter of the year by registering 4% and 7% growth.
5YR average Global SaaS and Software Sales per Quarter
If viewed from an annual perspective The Q4 numbers are 9% more than the quarter's average and is once more so high as to push all three quarters below the mean.
While global Q4 quarterly sales were just 1percent higher than the sales from the U.S. for the same month and November in its own month saw an increase of 16% over the U.S.'s 11% increase for the same monthwhich suggests that November offers a tremendous opportunity for sales across the globe.
5YR average SaaS and Software Sales by Month per Country
For more detail about how every month is broken down by country We analyzed the figures for all eight nations we included in our global review. Here's what monthly software sales fluctuations look like with five years of information for the United States (US), Canada (CA), Germany (DE), Great Britain (GB), India (IN), Brazil (BR), Australia (AU), and China (CN).
The huge gains in nations like China and Germany in November suggest an enormous chance for SaaS and software businesses to earn a profit during Q4 in particular if they're looking at these countries as part of a global expansion plan.
Additionally, while U.S. data suggest a smaller lift of only 11% in November, keep in mind the fact that North America accounts for a huge significant portion of worldwide software and SaaS sales. One study reporting 40% of 2022's worldwide software revenues that is attributed in North America, and one study estimating a portion of approximately 57.5% of the 2020 global SaaS market that is attributed to NA. Thus, a increase of 11% in November within NA U.S. could mean a lot more revenue if it's a slice of the larger pie.
B2C vs. B2B
Many companies that use to sell software internationally provide both B2C and B2B markets. Regardless of no matter if your SaaS business focuses exclusively on either or only one, it can be helpful to monitor how Q4 sales trends differ between the two segments. The information gathered can aid you in deciding how you should focus your sales and marketing efforts in these areas, particularly in the case of one sector offering bigger potential.
Data gathered from the study show same general trends throughout the year. Q4 was the most profitable quarter in both segments.
B2C sales recorded an average bump of 11% above the median for the period and is perhaps not surprising given the fact that this season is popular for encouraging consumerism- "consumer" is in the name.
Don't put too much faith in the B2B market in Q4. Even though B2B revenue appears to be somewhat more steady throughout the year in comparison to B2C revenues, a five% lift in Q4 is significant within a sometimes spending-driven segment that is still taking advantages of sales at the end of the year, regardless of whether a buyer purchases either for themselves or their business. Credit cards for corporate use are still used by a lot of people, buyers of software and may need to find a great deal in particular if tight departmental budgets are a factor in the purchase decision.
In addition, B2B buyers might be seeking to utilize funds from their budget prior to the year's end to ensure their budget is not reduced in the coming year, or they might be pushing teams or departments to set up using the appropriate equipment ahead of the new year starts. Specific business situations like these can be a factor in the rise of B2B sales in the fourth quarter despite all of the delays in work due to the holiday season.
Cyber Weekend Strategies for SaaS and Software Companies
Are you wondering how to make the most of the Q4 bump? No matter if you're targeting B2B or B2C customers These are a few tactical methods to boost sales of software and SaaS sales before the end in the calendar year.
Offer Partners Custom Coupon Discount Codes
Plus you'll be able to more accurately track how this sales promotion performed compared to other coupon codes.
Don't Have Partners to Give Special Coupons to? Look for Some!
If you're yet to take advantage of promotional partnerships The holiday season is a great time to bring new contacts. Search for SaaS and software businesses with products that complements yours. (For instance, if you develop a database software check out companies that produce front-end software.)
Alongside custom coupon codes provide the opportunity to trade Cyber Weekend promotions to each other's audiences in the form of emails, web banners, mentions on social media or any other method that will help both companies boost sales at the end of the year.
Contact Your Prospects
If you decide not to engage in partnership-related promotionsin the event that it's a larger project you'd need additional time to plan -- emailing your existing contact list of prospects is quick and easy tactic to implement.
Prospects aren't able to benefit from deals they aren't aware of, so don't rely only on a website banner to draw the attention of purchasers when they go to your website. Get your visitors into your site with proactive mailers about coming, current, and extended deals to grab the attention of those who are.
Send Your Current Customers an Email
As with potential customers, they can't be sold on if they aren't aware about promotions for the holidays, too.
Here are a handful of the profitable opportunities you could target within your existing user base:
- Add-ons for upselling. Analyze user data for customers who use your products the frequently or most general, because they may have the highest likelihood of wanting additional features as well as ease of use.
- Increase subscriptions by offering greater features. Just like with downloading, if you are able to determine your product's top users, then you can target people who are most likely to buy more of the product.
- Change freemium users to paid subscriptions with an irresistible sales. If the freemium model is an integral element of your company's model, a successful holiday sale might provide the incentive to convert users who love the features they have access to, but who are aware that they could use lots more.
- Upsell from individual subscriptions to group subscriptions or from team to enterprise subscriptions. It's not always easy to determine which users are also the evangelists for the product within their respective businesses, however if you have contextual user information (such as that which can be collected by your internal salesforce) the fourth quarter of 2018 could be the perfect time to focus on companies where you have some user penetration but you have the chance to gain a lot more.
- Cross-sell to completely new products. If your company model comprises a variety of standalone products, there's a big opportunity to target the user users of a product by offering offers to purchase the other, and vice versa. If you're able to offer more products and the greater segmentation you can do and the greater opportunities you have.
- Switch users from month-to-year subscriptions. It is the English phrase "A bird in a hand is worth two birds in the bush" frequently applies to business since the amount of revenue you can earn for your company now might be better than slightly higher revenue that is distributed gradually over the course of the year. Make the most of customers being in a shopping mindset during Q4 by entice buyers with an attractive deal to save on costs in the long run by changing their monthly subscription to a year-long one.
Leverage Social Media
Social media is an excellent platform to commemorate events, so sharing holiday-themed content from your company can work well.
A lot of social media platforms offer advertising options that target users by geographies or interests. You should consider taking advantage of the possibility to display regional holiday advertisements within the relevant regions or to display advertisements to those who have mentioned their interest in this holiday on the platform.
Conversely, organic social media content that can be seen by any users that follow your account, regardless of where they are located -- can also be a good way to spread sales without limit the number of views you can get to a specific group of people. Be aware that if your followers or your audience is diverse, your holiday-specific organic posts should be too.
Give More Exciting discounts in the Geos. Geos
If you experience greater profitability in one particular area or just want to enter a new market, then promoting aggressive discounts in specific areas can allow you to benefit from Cyber Weekend sales increases.
In order to implement this, make use of GeoIP-based features on your site to promote region-specific discounts.
Then use 's Store Builder Library to automatically apply those code in the checkout to improve your conversion rate.
Localize Holiday Promotions
While Cyber Weekend has become popular all over the world but there are local celebrations that could be more profitable in the specific area or nation you're trying to reach. The holidays like Boxing Day can rival more U.S.-centric events (such as Black Friday and Cyber Monday) for countries like the UK, Australia, and Canada.
Make sure you tailor your Christmas season promotions in accordance with geography to ensure you don't miss great opportunities in important areas.
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