Get More Information about Q4 2022 SaaS and Software Holiday Spend Report
The fourth quarter is the most crucial period for software companies across the world.
The results were confirmed when we looked at the figures for sales of over 300 SaaS and software companies who utilize our billing platform. We observed in the 4th quarter 2014 was most definitely the highest-performing quarter of the year for both consumer and commercial sales.
This is our question to you: Do you reap the benefits in this time of year? Software companies in November see an average of 11%-24% more than the annual average revenue.At the end this year buyers are eager to pay on subscriptions and software- do you use your marketing budget effectively?
In this post You'll discover:
- The trend of US software sales, by quarter and month
- How software sales vary across the globe throughout the year
- Comparative study of B2B B2C sales and B2C transactions between quarters
- Strategies to make the most of seasonal holidays and occasions all over the world
More Information About Our Data
's billing platform supports over 3500 SaaS as well as software businesses that have customers found in over 200 different countries and territories. This article will be focusing on the locations where sales are conducted and not which location the company is.
We'll also look at the average monthly revenue of all sales that are made in the country of the country in question, along with an index of seasonality that compares the month to the average revenue of the year in question.
Based on our research, it appears that it's worthwhile having Black Friday, Cyber Monday, and other holiday promotions during November and December.
But, the "holidays" are often more than Black Friday and Cyber Monday. If you consider the global situation, there's a myriad of different holiday times in which you could promote promotions and increase profits.
It's just a matter of being aware of where to take you.
US Year-End Trends SaaS And Software Purchases
In the U.S., many industries have a substantial increase in sales at the end each year. For example, toys, hobbies and game stores earn 35 percent of their revenue during the holiday season. However, is this true for SaaS or software?
With five years of data that we analyzed We looked at the average monthly earnings of software sold through 's platform to customers located within the U.S. Then we assessed the ratio of every month's earnings to the average for the year.
The sales are reaching their highest point in November , but they will be strong through to the close of the year.
Average US SaaS and Software Sales
When we look at the entire quarter it is clear that the fourth quarter was stronger than the other three.
US SaaS as well as Software revenue by quarter
This is only data about sales in the U.S. How is it affecting the international market?
Global End-Of-Year Trends For SaaS and Software purchases
In order to better understand the behaviour of global consumers to better understand the behavior of consumers worldwide, we examined SaaS and software purchases across eight important markets including those from the U.S., Canada, Germany, Great Britain, India, Brazil, Australia in addition to China.
Again, when we examined the sales from October through December in comparison to the monthly average for the months of October to December, we saw an increase in sales during October, November, and December, with sales highest in November . The peak in November is much higher across the globe.
Average global SaaS, Software, and Sales
Keep in mind that the figures depend on where the customer is situated, not on the location of the corporate headquarters and suggests that Black Friday and Cyber Monday revenues actually result in a worldwide growth in revenues for SaaS and software businesses.
Amount of Monthly Revenue Per the country (2016-2020)
If we look deeper at the data and then take a look at the outcomes and find that, while the fourth quarter is the most robust quarter for every country, the growth differs significantly between countries. the country. As an example, among the countries that we studied, China and Germany had most significant average spikes in November.
B2B Versus B2C , End of Year Performance
There's been a lot of anecdotal talk of sales from B2B slowing in the fourth quarter. We suspect this is true in the case of the sales process that has prolonged buying cycles, or for those using an account-based approach. However, when we look at B2B SaaS along with software sales in general We find that the last quarter actually was the most profitable quarter of the year. It has an average of 114% higher than the quarter-to-quarter average.
To compare the effectiveness of B2B in comparison to B2C companies by random selection, we selected 30 customers who only provide B2B or B2C markets across the globe. We looked over their revenues from the years 2019 2020, and 2021 order to determine patterns.
It is evident that the fourth quarter of the year was by far the most successful quarter for B2B andB2C firms.
B2B Versus Quarterly B2C Sales
What are these lessons telling our readers with regards to how SaaS and software companies can prepare for the holidays? In the coming sections, we'll provide some of the best strategies for the closing day of year. In addition, we'll provide further data that can help you find alternative ways to boost revenues all through the year.
5 Strategies to Celebrate Christmas for SaaS And Software Companies
1. Take a look at different ways to advertise for The Region or Country
If you are running promotions in multiple countries or regions, think about the possibility of localizing your promotional activities.
In many countries where sales are rising, this increase throughout November happens during the course of Cyber Week, which is widely recognized by many countries across the globe. This includes Germany where there is the second largest increase in November in the world of nations that we've compared.
The biggest increase came from China which is a nation where Cyber Week is not as important as Singles' Day that occurs on the 11th of November. According to our analysis We discovered that there was an impressive increase in sales China during singles' Day.
2. Include regional and other competitive holidays to your campaign Calendar
The data we analyzed reveals potential opportunities at other times of the year also. For instance, even though sales decreased in June in most of the countries we examined, it increased in China probably due to the annual 618 shopping day which is the second-largest e-commerce holiday across the nation. Single's Day is the largest.
Many companies conduct promotions during Black Friday and Cyber Monday. However, don't forget that there are many other holiday seasons throughout the year that are a great way to increase revenue.
If your product is gaining huge acceptance within a specific location, then it may be beneficial to design a regional calendar of holiday occasions for that region before putting together a specific region-specific offering that matches the calendar.
It's impossible to give you an idea of what's likely to take place to your specific business but you're conscious of the market you are competing in. Examine your documents and note any patterns or developments you find.
The majority of the time, data from areas will give you a better idea of your ROI (ROI) for any marketing campaign you're running.
The holidays or major Holidays in the Shopping Industry
Here are a few ideas you ought to think about. There will be many other events specific to certain regions. we recommend that you look into activities in the regions that you are interested in.
- Chinese New Year/Spring Festival - It occurs every year between the 21st of January and the 21st day of February
- HTML1It is widely celebrated in China and other countries with large Chinese or Sinophone numbers
- International Women's Day -- March 8
- National holidays in 27 countries in West, Central, and East Africa, Eastern Europe, Germany, China and North Korea
- Singles' Day -- November 11 is an Anti-Valentine Day holiday
- It is celebrated in Southeast Asia and Western Europe
- Diwali -- the 15th of December in the Hindu month Kartik (Usually in late October, or at the beginning of November)
- It is celebrated by those living in South Asia, Southeast Asia, Caribbean
- Click Frenzy on the Second Tuesday of November
- Australia
- Black Friday -- Last Friday of November
- North America, much of Western Europe, China, most of Africa, Brazil, and Mexico are all part of the .
- Cyber Monday
- The majority of countries who 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, much of Southeast Asia, South Africa
- Boxing Day -- December 26
- is a cult in Great Britain, Australia, New Zealand
- The International Day of Workers or Labor Day -- May 1 is an important day across Europe, Russia, Africa, Central and South America and the beginning of September in the U.S. and Canada; as well as the first Monday of the month of October in Australia
- The HTML0 is extensively acknowledged all over the world.
3. Promotional Marketing Efforts can Roll Over into Q1
As software sales decline in the beginning of the quarter this year's year, the decrease may not be as dramatic as you'd hope. Sales in January remained steady (above 90%) throughout the US, Great Britain, Germany in Germany, Great Britain, the US and Canada. A larger drop was seen in February.
Most people in the sales and marketing departments can take a break in the beginning of the year in order to recuperate or recharge. It's also an opportunity to stand out when there's less competition.
When you conduct campaigns in the fourth quarter of the year, you're not only competing with your competitors directly. When the clock is winding down for the year, people's inboxes and social media feeds overflow with Christmas-related promotions. More than any other time of the year, it's an opportunity to be recognized.
It's the ideal opportunity to experiment with new and exciting things.
4. Keep track of your sales using An Index of Seasonality
Examine the outcomes of your campaigns year-over-year to make sure the increase in expenditure doesn't surpass the growth in revenue.
Monthly-over month (MoM) or year-over year (YoY) growth can tell you many things, but they're not the only way to assess your progress.
An index of seasonality similar to the one used in our study, indicates the way a particular month is compared with the average months of the year.
We suggest keeping the track of your annual campaigns and compare the results to the other campaigns you are running during the course of the year.
Keep in mind that a monthly rise in sales could not give enough information to evaluate the efficacy of an advertising campaign. In the case of Cyber Monday, for example depending on your local time and time when orders are taken Cyber Monday sales can last into December. If you only look at the sales figures for November You may not see all of the picture.
If you're planning the events you're planning to promote There are other KPIs that we suggest tracking.
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5. Focus on Customer Appreciation
Although you may not be able to double the amount of money you earn at the close of the year, the Christmas season is the best opportunity to improve your relationships with clients, specifically when you offer an SaaS product.
Use the holidays for an opportunity to show your appreciation to clients who are already frequent or VIP customers by offering additional generous discounts, giveaways, gift cards as well as personalized offers. Here are some suggestions from other companies SaaS and software companies that have used successfully:
- Use your own "Holiday Bundle" promotion with your best add-ons and even an additional training.
- Give a huge discount on a subscription plan or an upgrade to program.
- Make a promotional campaign for presents in which clients are asked to buy software, subscriptions or other subscriptions for family members or friends.
- Run the "Treat Yourself" promotion encouraging clients to purchase an item to pamper themselves during the time of the holiday.
- You can give away the annual upgrade or subscription to users for those who have enrolled in an incentive or referral program.
- HTML1 Make something distinctive to attract email newsletter readers.
4. Reward your affiliates
There are many affiliates either individuals or companies may be planning to work hard throughout the holidays which makes this an ideal opportunity to reward them with a larger commission rate or a particularly good deal which they could recommend.
How Do I Help?
Here are a few methods which are fully-stack platforms for commerce that can assist you over the Christmas season, and even beyond.
1. Support Managers of Inquiries
If you anticipate the possibility of a significant increase in sales over the Christmas period, is your customer service team up to date? Support for purchase-related inquiries is available for your convenience to save money and time to concentrate on increasing sales during the festive season.
2. Localized languages, currencies and Payment Methods
For you to be competitive and succeed on the international market, your business must give customers a shopping experience that is localized and is suitable for a range of local languages, rules and preferences local to the area.
Popular payment methods depend on the area of the site. If you notice a trend in the most popular areas on your site analysis then you'll be able to choose which payment options that you can offer to international clients. This includes digital wallets like PayPal along with wire transfer and credit card. In offering the most preferred mode of payment, you'll be in a position to decrease abandonment of carts as well as declines in payment.
provides a checkout service that is translated to local currency and automatically converts your pricing data in accordance with the preferences of your customers for local currency as well as language and gives a range of payment options.
3. Global Tax Management and Regulation Compliance
Global consumers don't want an unexpected regulatory or tax charge that is a huge unsettling to purchase.
It calculates tax including GST, VAT and VAT automatically when you check out. This also makes sure that compliance with regulations like PSD2 and GDPR are automatically applied for impacted transactions.
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