Cyber Weekend Benchmarking Data: 2023 SaaS and Software Holiday Spend Report -
Sales numbers for Q4 typically outperform the rest of the year thanks to year-end holidays and the associated shopping cycle -- but how much of this trend extend to Software and SaaS sales? Do they improve B2B sales, too? Or does it just give benefit for B2C?
serves as a merchant of record for over 350 companies who use our platform every day to sell digital products globally. We've looked at aggregate sales statistics to provide you with insights on the importance of Q4 to be for your software, SaaS and other digital goods businesses.
While modern holiday shopping trends may have started by offering Black Friday deals and spread through Cyber Monday however, the whole weekend is often described as Cyber Weekend -- and sales throughout the quarter tend to be strong as people prepare for its many holidays. Are you maximizing all Q4 sales opportunities for your software-related business?
Below, we'll cover:
About Us Data
Where Data Are From? Data Are From
is used by more than 3500 businesses in helping to sell digital goods in over 200 territories and countries around the world However, we've narrowed our data used in this report in order to keep it applicable to software as well as SaaS businesses.
These data are particular to the area where sales took place and not the location which location the businesses are situated.
In order to get global data We selected eight nations -- the United States, Canada, Germany, Great Britain, India, Brazil, Australia and China in order to provide the full picture of the global sales.
If the Data are From
The information below is gathered from the years 2018-2022 in order to provide most recent information while showing trends that are similar across the five years and avoiding any outliers skewing the information unnecessarily.
We further use a seasonal index that highlights every quarter's or month's sales with respect to the year's weekly or monthly average.
US year-end trends SaaS as well as Software Purchases
We first looked through U.S. software and SaaS sales data from 2018-2022 to glean insights into quarterly and monthly sales trends across the last five years.
After calculating a monthly average and comparing every month with this average to determine a percentage. For example, if February shows a percentage of 90%, this means it is 10% lower in sales compared to the average monthly. If, for example, November has a percent at 111% that indicates that its sales are 11percent higher than the monthly average.
5YR Average US SaaS and Software Sales per Month
The peak sales are in November at 11% higher than average for the month and sales across all three months in Q4 have the highest levels throughout the year, with October being 4% more than the previous month and December averaging 8% more.
5YR Average US SaaS and Software Sales by Quarter
Looking at the quarter's average, Q4 sales are higher by 8% and are so high that each of the other three quarters fall in the middle of the mean.
Global Year-End Trends for SaaS and Software Purchases
Going beyond the U.S., we combined information with similar parameters from the U.S., Canada, Germany, Great Britain, India, Brazil, Australia, and China. This gives us a clearer picture of how late-year software sales could vary across the world.
The bump actually grows larger.
5YR Average Global SaaS and Software Sales per Month
Global sales jumped to a yearly high of 16% more in November compared to the month-to-month average. As in the U.S. data above, the months of October and December are with the top quarter of the year with respective 4% and 7% increases.
5YR Average Global Software and SaaS Sales by Quarter
From the perspective of a quarterly view, Q4 is 9% more than the quarterly average and is once more so high as to push the remaining three quarters lower than the average.
While global Q4 quarterly sales were merely 1% higher than sales in the U.S. for the same quarter however, the November month saw an increase by 16% when compared with those in the U.S.'s 11% growth in the same month -which suggests that November is a huge sales opportunity all over the world.
5YR SaaS Average and Software Sales per Month and Country
More information on how each month breaks into countries We analyzed the data for the 8 countries we included in our global analysis. Below is a look at what monthly software sales fluctuations look like with five years of data from 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 in November suggest that there is a great opportunity for SaaS as well as software firms to make money in the fourth quarter in particular if they're targeting those countries in a global expansion plan.
In addition, although U.S. data suggest a less significant increase of 11% during November, keep in mind this: North America accounts for a very huge portion of the world's software and SaaS sales. One study revealing 43% of 2022 worldwide software revenues that is attributed to North America, and an additional study reporting up to 57.5% of the 2020 global SaaS market which is due to the NA. Thus, a increase of 11% 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 internationally offer both B2C as well as B2B markets, but whether your SaaS business focuses on both or just one is important to observe how sales performance differs between two market segments. The information gathered can help you decide how much to concentrate your marketing and sales activities within these two areas, particularly in the case of one sector offering bigger chance.
The resulting data show the identical general trend throughout the year, with Q4 being the best quarter of both of these segments.
B2C sales saw an average bump by 11% over the median for the period that is not surprising given the fact that this season is that is known for its promotion of consumerismthe word "consumer" is part of the wording.
Don't put too much faith in the B2B market in Q4. While B2B revenue appears to be slightly more stable throughout the year than B2C revenues, a five percentage increase in the fourth quarter is significant in a spending-driven segment that is still taking benefit of deals at the end of the year regardless of whether a consumer purchases to themselves or for their business. Credit cards for corporate use are still used by a lot of people, people who are shopping for software, and who may be looking for a bargain particularly if strict departmental budgets are a factor when making purchases.
Additionally, some B2B shoppers could be looking to make use of more budgetary funds before the year's end in order to make sure their budgets are not reduced next year, or they could be pushing their teams or departments set up using the appropriate equipment ahead of the start of the year. Business-specific instances like these could be a factor in the rise of B2B sales during Q4 despite the numerous interruptions to work during the holidays.
Cyber Week Strategies For SaaS and Software Companies
Looking for the most effective ways to profit from that increase in Q4? Regardless of whether you're targeting B2B or B2C shoppers Here are some strategic strategies for boosting the number of applications and SaaS sales before the end this year.
Give Partners Custom Coupon Codes
In addition, you'll have the ability to monitor how the sales promotion performed compared to other coupons.
Aren't able to find partners to give Custom Coupons To? Find Some!
If you're not yet taking advantages of promotions The holiday season is a great time to spur on new connections. Search for SaaS and software businesses that offer a product which complements your own. (For example, if you develop a database software check out companies that make front end tools.)
Besides custom coupon codes, propose to swap Cyber Weekend promotions to each of their audiences through the use of email messages, site banners, social media mentions, or other preferred methods which will assist both businesses improve sales for the final quarter of the year.
Contact Your Prospects
If you decide not to engage in partnership-related promotions- or if that's a larger project you'd need more time to prepare for Emailing your existing contact list of prospects is simple and quick method to carry out.
Prospects can't take advantage of sales they don't know about So don't depend solely on banners for your website to draw the attention of buyers on a visit to your site. Inspire the visitors into your site with proactive mailers about coming or current sales to get the attention of those who are.
Email Your Current Customers
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 possibilities for profit you can pursue within your existing user base:
- Upsell add-ons. Examine user information for those that use your product the most often or the most generally, as they could be most likely to want even more features and ease of use.
- Increase subscriptions by offering more options. Similar to downloads, if you can identify your product's most powerful customers, you can focus your efforts on people who are most likely to buy more from the product.
- Change freemium users to paid subscribers by offering an irresistible offer. If you consider freemium to be a major element of your company's model, a strong sales during the holiday season could provide the incentive to convert users who love their access to, yet realize they would really benefit from lots more.
- Upsell from individual subscriptions to team subscriptions, or from team to enterprise subscriptions. It's not always easy to find out which power users also become evangelists of your products within their own company, but if possess user data that is contextual (such such as the kind that can be collected by your internal salesforce) then Q4 is a great time to target companies where you have some customer penetration, and you have the chance to gain much more.
- Cross-sell into completely new products. If your business model has a number of separate products, there's a big chance to reach the customer users of a product by offering offers to purchase the other or reverse. The greater number of products you own and the greater the segmentation that you are able to do as well as the better chances you'll have.
- Switch users away from monthly to yearly subscriptions. It is the English phrase "A bird in the hand is two in the bush" is often true in the business world, as revenue available to your company now may be preferable to a little more money distributed slowly throughout the next year. Make the most of customers being in a shopping mindset in Q4: Tempt buyers with an attractive deal to save on costs over the long term by switching their monthly subscription to a year-long one.
Leverage Social Media
Social media sites can be an excellent platform to commemorate holidays, and sharing festive articles from your business could work well.
Numerous social media platforms provide advertising services that can be targeted at users based on geography or by interests. Take advantage of the capability to display regional holiday advertisements within the relevant regions or even the capability to show ads to people who have indicated their interests in the holiday on the platform.
In contrast, organic social media posts -- which can often be seen by all users who follow you regardless of geography -- can also be a good method of spreading sales, without limit the number of views you can get to a specific segment. Keep in mind, however, that if your fans or audience are very diverse and diverse, then your seasonal organic posts are also likely to be so.
Provide More Coupons for Geos. Geos
If you experience greater profitability within a specific region, or simply want to break into a new market, offering more competitive discounts in certain regions can help you further profit from Cyber Weekend sales increases.
For implementation, you can use GeoIP-based components on your website to advertise regional discounts.
Use's Store Builder Library to automatically apply those codes in the checkout to improve your conversion rate.
Localize Holiday Promotions
While Cyber Weekend has become popular all over the world There are a few local holidays that are more profitable in the specific location or country that 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 Australia, the UK, Australia, and Canada.
Customize your holiday season campaigns in accordance with geography to ensure you don't miss huge opportunities in the key regions.
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