Cyber Weekend Benchmarking Data 2023 SaaS and Software Christmas Spend Report
Sales numbers for Q4 typically outperform other times of the year thanks to year-end holidays and their associated shopping cycles But what percentage of that increase extend to software and SaaS sales? Does it help B2B sales too, or is it more just a B2C benefit?
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 just how important Q4 can be to your SaaS, software or any other digital good commercial.
While modern holiday shopping trends may have started in Black Friday deals and spread into Cyber Monday, the entire weekend is now often referred to as Cyber Weekend -- and sales throughout the quarter tend to be strong as people are getting ready for their many Christmas celebrations. Are you taking advantage of all revenue opportunities in the fourth quarter of your software-related business?
Below, we'll cover:
About Us Data
where Data Are From? Data Are From
The company supports more than 3500 businesses to help sell digital goods in over 200 territories and countries around the world However, we've narrowed the data we used for this report to keep relevant to software and SaaS firms.
The data below are also specific to the area where transactions took place and not the location in the location where the company is located.
For the global statistics We selected eight nations that include including the United States, Canada, Germany, Great Britain, India, Brazil, Australia as well as China -- to get a broad view of sales around the world.
when you are Using the Data are From
The information below is gathered from 2018 to 2022, providing the most up-to-date insights, while showing trends that are similar across the five years as well as avoiding outliers that could skew the information unnecessarily.
We further use an index of seasonality to show each month's or quarter's sales with respect to the year's daily or quarterly average.
US Year-End trends SaaS as well as Software Purchases
We first looked through U.S. software and SaaS sales figures from 2018-2022 in order to glean insights into monthly and quarterly sales trends across the last five years.
When we calculated an average for the month and comparing the month's sales to this average to determine a percentage. For example, if February's percentage is 90%, it means it is 10% lower in sales compared to the average monthly. If, for example, November has a percent at 111% it means its sales are 11% higher than the average for each month.
5YR Average US SaaS and Software Sales per Month
While sales do peak in November, with 11% higher than average for the month and sales across every month of Q4 have the highest levels throughout the year. October is particularly high, with sales being 4% more than the previous month and December being 8% more.
5YR US Average SaaS and Software Sales per Quarter
When looking at the quarter's average Sales for Q4 are up by 8% -- high enough that all three quarters fall below the mean.
Global Year-End Trends SaaS and software purchases
Beyond to the U.S., we combined information with similar parameters from the U.S., Canada, Germany, Great Britain, India, Brazil, Australia and China. This helps us get a better picture of how late-year software sales could change across the globe.
In fact, the bump gets bigger.
5YR Average Global SaaS and Software sales by Month
Global sales jumped to the highest level of the year, which was 16% during November, compared to the month-to-month average. Similar to the U.S. data above, November and December complete the most profitable quarters of the year by registering 4and 7 percent increases.
5YR average Global Software and SaaS Sales by Quarter
From an annual perspective, Q4 is 9 percent higher than the quarter's average and, yet again, that high enough to make all three quarters lower than the mean.
Global Q4 quarter-end sales were just 1% higher than sales from the U.S. for the same quarter however, the November month saw an increase of 16% over that of the U.S.'s 11% increase during the same monthwhich suggests that November offers a tremendous opportunity for sales across the globe.
5YR Average SaaS and Software Sales per Month for each country
To get more details about how every month is broken into countries We analyzed the data for the 8 countries that we have included in our global overview. Here's what monthly software sales fluctuations look like with five years of information for those countries: the United States (US), Canada (CA), Germany (DE), Great Britain (GB), India (IN), Brazil (BR), Australia (AU), and China (CN).
Particularly large lifts in countries such as China and Germany during November indicate that there is a great potential for SaaS and software businesses to profit in Q4 particularly if you're looking at these countries as part of an overall expansion plan.
Furthermore, even though U.S. data suggest a less significant increase of 11% during November, keep in mind the fact that North America accounts for a huge significant portion of worldwide software and SaaS revenues, with one research study showing 40% of 2022's total software sales that is attributed in North America, and another reporting a share of as high as 57.5 percentage of 2020 world SaaS market which is due to NA. So, a rise of 11% during November, in NA U.S. could mean a increase in revenue when you consider it a piece of the larger pie.
B2C vs. B2B
A lot of companies who sell software internationally provide the B2C as well as B2B markets. Regardless of whether your SaaS business focuses exclusively on either or only one the other, it is beneficial to keep track of how the Q4 sales performance differs between two markets. The resulting information can help you decide how much you should focus your sales and marketing activities within these two areas, particularly if one segment offers a greater opportunity.
Data gathered from the study show identical general trend throughout the year, with Q4 being the most profitable quarter in both of the segments.
B2C sales saw an average bump that was 11% higher than the quarterly average that is not surprising given the fact that this season is that is known for its promotion of consumerism- "consumer" is part of the wording.
Don't put too much faith in B2B sales in Q4. Although B2B sales appear marginally more stable over the course of the year in comparison to B2C revenue, a 5% lift in Q4 is significant within a sometimes spend-happy segment that still takes advantage of end-of-year deals, regardless of whether a buyer purchases for themselves or their company. Corporate credit cards remain in use by many people -- people who are shopping for software and may still want a good deal in particular if tight budgets for departments are an element in the purchase decision.
Additionally, some B2B shoppers could be looking to make use of up budgetary money before the close of the year to ensure their budget is not reduced the following year. They might be pushing teams or departments set up with the right technology ahead of the new year starts. These kinds of business-related events could contribute to increased B2B sales in the fourth quarter despite all of the holiday work disruptions.
Cyber-Week Strategies for SaaS and Software Companies
Are you wondering how to profit from that boost in the fourth quarter? No matter if you're targeting B2B or B2C shoppers Here are some strategic ways to increase software and SaaS sales prior to the close of the year.
Partner Custom Coupon Codes Give Partners Custom Coupon Promo Codes
Additionally, you'll be able better track how that sale promotion was able to perform compared with other coupon codes.
Don't Have Partners to Give Special Coupons to? Look for Some!
If you're not yet taking the advantage of partnerships with promotional partners, the holiday season can create new partnerships. Find other SaaS and software businesses with products that compliments yours. (For example, if you create a database application, look for companies that make front end tools.)
Besides custom coupon codes, propose to swap Cyber Weekend promotions to each audience in the form of newsletter messages, website 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 don't decide to engage in partnership-related promotionsfor instance, if it's more of a project for which you'll require more time to plan for sending out emails to your current prospect list is a relatively quick and easy tactic to implement.
Potential buyers can't benefit from offers they don't even know about Don't just rely on banners for your website to draw the attention of prospective customers when they visit your site. Get your visitors on 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
Just like potential customers, they can't be sold on if they aren't aware about promotions for the holidays, too.
Here are a handful potential opportunities for earning money that you can pursue within the existing users you have:
- Add-ons for upselling. Review user statistics for the customers that use your product the majority of the time or generally, as they could be the most likely to require further features or usability.
- Upgrade larger subscriptions to greater options. Similar to downloading, if you are able to identify your product's most powerful users, you can target people who are most likely to buy more of the product.
- Change freemium users to paid subscriptions with an irresistible offer. If you consider freemium to be a major component of your model, a strong sales during the holiday season could provide the incentive to bring in customers who are enthralled by their access to, yet are aware that they could use many more.
- Upsell from individual subscriptions to group subscriptions or from enterprise to team subscriptions. It might not be straightforward to determine which users also become evangelists of your product at their own businesses, however if you possess user data that is contextual (such like that which could be obtained by your internal salesforce) the fourth quarter of 2018 could be an ideal time to reach out to companies where you have some user penetration but the opportunity to get a lot more.
- Cross-sell into entirely new products. If your model of business comprises a variety of standalone items, you have a huge chance to reach the customer users of a product by offering promotions to buy another, and reverse. If you're able to offer more products, the more segments you're able to create as well as the better possibilities you're able to take advantage of.
- Switch users from month-to-year subscriptions. It is the English saying "A bird in the hand is two in the bush" often applies in business, as revenue available to your organization right now might be better than a little more money distributed gradually over the course of the year. Take advantage of buyers being in a shopping mindset in Q4: Tempt buyers with an attractive deal to save on costs in the long run when they switch their subscription to a yearly one.
Leverage Social Media
Social media is a great place to celebrate holidays, and sharing festive content from your company can make sense.
Numerous social media platforms provide advertising options that focus on users according to geography or by interests. Consider taking advantage of the ability to show regional holiday ads in applicable regions, or to display advertisements to those who have expressed desire to celebrate this holiday on the platform.
In contrast, organic posts on social media are often able to be viewed by anyone that follow your account, regardless of where they are located -- could be an excellent method of spreading sales, without restricting views to a tiny segment. Be aware that if your followers or your audience is diverse, your holiday-specific organic posts are also likely to be so.
Offer More Aggressive Discounts in The Target Geos
If you are experiencing greater profits in a particular region or simply want to enter a new market, then promoting competitive discounts in certain areas can allow you to take advantage of Cyber Weekend sales increases.
For implementation, you can use GeoIP-based features on your website to advertise regional discounts.
Then use 's Store Builder Library to automate the application of these codes during checkout. This can help increase your conversion rates.
Localize Holiday Promotions
Even though Cyber Weekend has become popular across the globe but there are local holidays that are more profitable in the specific region or country you're trying to reach. The holidays like Boxing Day can rival more U.S.-centric promotions (such like Black Friday and Cyber Monday) for countries like the UK, Australia, and Canada.
Create your own holiday campaign in accordance with geography to ensure you don't miss out on huge opportunities in the key areas.
What Can I Do?
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is aware that just making your product available to more people isn't enough -- it should be effortless for customers to decide whether to purchase.
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One of the other key tasks is customer support management. Customers can contact us for assistance in resolving issues related to checkouts and purchases tax, as well as billing, downloads, subscriptions and many more.
