Find Out More About the Q4 2022 SaaS and Software Christmas Report on spending
In the fourth quarter, it is considered to be the most important quarter for all software firms all over the world.
We verified this by looking through sales figures of more than 300 SaaS and software firms that use our bill-pay platform. The quarter ended up being one of the most profitable quarters for the year, both in commercial and consumer sales.
We'd like to ask your organization Is your company taking full advantage of the quarter? Software companies has seen an increase of 11% to 24% more than the average monthly revenue.At the conclusion of the year the customers will be eager to spend for subscriptions and software -Are you spending your marketing budget wisely?
In this report You'll find:
- The trend of US software sales by month and quarter
- How software sales vary all over the world during the year
- A comparative of B2B and B2C sales from quarter to quarter
- Strategies to make the most of the seasonal holiday season and its opportunities around the world
More Information About Our Data
's billing platform supports over 3500 SaaS and software companies who are clients in over 200 different countries and territories. In this post, we'll concentrate on how sales are made as opposed to the place a company is located.
We'll also be looking at the median income of all sales within one country, using an indicator that is seasonal, and will compare the month's income with the average revenue of an entire year.
Our data suggests it's worth conducting Black Friday, Cyber Monday along with other promotions for holidays between November and the last day of December.
However, the "holidays" can be greater than Black Friday and Cyber Monday. When you view the world in a global context you will find a myriad of occasions for promotions which can generate revenue.
It's merely a matter of knowing where on the globe to look.
US year-end trends for SaaS And Software Purchases
The U.S., many industries are experiencing a dramatic growth in sales in the close of the season. For instance, hobby, toy, and game stores earn around 35 percent of revenues in the holiday season. What's the deal with SaaS and software?
Five years of information We examined the monthly average revenue for software that is sold on the platform that is located in the U.S. Then we studied the ratio of each month to the annual average.
Sales are at their peak in November and continue expanding until the last day of the year.
Average US SaaS and Software Sales
Examining the entire quarter and comparing it to the prior three quarters we can see that the fourth quarter is likely to surpass the three previous quarters.
US SaaS and Software sales per Quarter
This is only data on sales in the U.S. However, what are the global patterns?
Global Trends at the End of Year for SaaS And Software Buys
For a better understanding of global consumer behavior and to better understand consumer behaviour, we conducted research on SaaS as well as software purchase in eight major markets, including the U.S., Canada, Germany, Great Britain, India, Brazil, Australia and China.
When we examined the October-to December's sales compared with the average monthly revenue over the course of the year, we noticed an increase in sales between November, October and the month of December. The highest sales occurring during November. This is also significantly more globally.
SaaS Global Average and Software Sales
Note that these numbers are based on the location that the customer is located, not where the headquarters of the firm is, which indicates that those Black Friday and Cyber Monday sales are actually driving the world to boost revenues for SaaS and software firms.
Average Monthly Revenue per country (2016-2020)
If we dig deeper into the data and take a look at the data, we find that although Q4 is the strongest quarter for all countries however, the growth rate varies across countries. When it comes to the nations that we examined, China and Germany had most significant average rises during November.
B2B In contrast to B2C at the end of the year Performance
There's lots of anecdotal information about B2B sales declining in the 4th quarter. It's possible this is an issue in systems for sales that have more lengthy buying cycles or accounts-based models. But, when we examine B2B SaaS along with software sales generally, we find that this is the highest-profit time of the year, with an average 114% growth over the typical for every quarter.
In order to compare the B2B results against B2C companies by randomly choosing 30 clients that only provide B2B and B2C market across the world. We then looked over their earnings from the years 2019 2020, and 2021 in order to discern trends.
You can see that in the 4th quarter, there was a obvious win for B2B andB2C businesses.
B2B Versus B2C Quarterly Sales
What do these facts tell us about the way SaaS and software companies can prepare for the holiday season? In the next few sections, we'll offer best techniques for the final days of the year. In addition, we'll provide further information that will help you find alternatives occasions to increase revenues during the entire whole year.
5 Strategies to Celebrate Christmas for SaaS And Software Companies
1. Consider different strategies for marketing that are appropriate for each country Or Region
If you are running campaigns in multiple areas or countries, you should think about the possibility of localizing your promotion.
The rise of many countries' sales throughout November happens around Cyber Week, which is recognized by several countries around the world. That is not just Germany where there is the second largest increase in November among all countries we looked at.
The biggest boost was derived in China as a country that Cyber Week is not as crucial as Singles' day which is celebrated on the 11th day of November. Per our data we observed a significant growth in sales China on Singles' Day.
2. Include regional or other competition-based Holidays to your Campaign Calendar
The data we analyzed reveals the potential for growth at different seasons in the year and. As an example, revenue dipped in June in most nations we examined, it was up in China possibly because of the Annual 618 shopping day that is second in terms of ecommerce holiday around the globe. Single's Day is the largest.
Many companies conduct promotions around Black Friday and Cyber Monday. But, remember that there are other holidays all through the year which you could leverage to boost the amount of money you earn.
If your product has great recognition in a specific area It may be beneficial to develop a regional calendar of holiday events for the area and develop a special region-specific offer to match it.
We're not able to give you an idea of what might happen to your specific business, however, you are aware of your markets. Look over your data and see what patterns and trends emerge.
Generally, data from regions provide a better comprehension of the ROI (ROI) in any advertising program you are running.
Holidays Or Significant Shopping Days Of Note
Here are some ideas that you can think of. There will be many others within certain regions, and we encourage you to look into activities in your regions that you market to.
- Chinese New Year/Spring Festival- Always falls between January 21 and the 21st of February
- HTML0It is popular in China as well as other countries with significant Chinese or Sinophone populations.
- International Women's Day -- March 8
- National holidays across 27 nations across West, Central, and East Africa, Eastern Europe, Germany, China and North Korea
- Singles' Day -- November 11 An Anti-Valentine Day holiday
- The is widely celebrated in Southeast Asia and Western Europe
- Diwali is the fifteenth day of Kartik The Hindu month Kartik (Usually late October or at the beginning of November)
- It is a favorite among those from South Asia, Southeast Asia, Caribbean
- Click Frenzy - The 2nd Tuesday in November
- Australia
- Black Friday -- The Final Friday in November
- North America, much of Western Europe, China, most of Africa, Brazil, and Mexico are all participants.
- Cyber Monday
- Most countries that take part 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 celebrated in Great Britain, Australia, New Zealand
- The International Day of the Worker or Labor Day -- May 1 in much of Europe, Russia, Africa, Central and South America and September 1 marks the start of September across Canada as well as the U.S. and Canada; as well as the first Monday of October in Australia
- Widely celebrated all over the world
3. Promotional Marketing Efforts can Roll Over into Q1
Although software sales are slowing through the first quarter of the year but it's not so drastic as you'd hope. Sales in January were strong (above 90 percent) all across all of the US, Great Britain, Germany, and Canada. However, the biggest drop took place in February.
A lot of sales and marketing departments are able to relax throughout the first quarter of the year to rest or recharge. There's also a chance to be noticed even during an increased competition.
If you launch campaigns in the fourth quarter, it's not just competing against rivals in your area. As we approach the moment to close the year, your customers' inboxes and Facebook feeds are filled with festive promotions. In the most popular time during the year, it's a time when there's a lot of competition for attention.
The months of January and February could be an ideal time to explore new and interesting products.
4. Keep track of your sales using the Index of Seasonality
Monitor the effectiveness of your campaign year over year so that you can ensure that the rise in spending does not exceed the increase in revenue.
month-to-month (MoM) and year-over-year (YoY) The growth of a business can show some information, however they aren't the only way to examine the results.
A seasonality index like that we've utilized in this article will demonstrate how the current month's performance contrasts with the typical one over the course of the year.
It is suggested to keep track of every year's campaigns YoY. You can then compare the results with other campaigns that you've conducted throughout the year.
Remember that an increase in monthly revenue might not provide enough information to assess the success of your marketing campaign. In the case of Cyber Monday, for instance according to your local time and day the transaction is completed, Cyber Monday sales may last into December. If you only take a look at the November sales figures, it is possible that you don't see the full picture.
When you're making plans for your events for promotion, here are some other KPIs we recommend tracking.
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5. Concentrate on the Recognition of the Customer
If you're not planning to double the amount of revenue you earn at the end of this year, the Christmas season is the best moment to establish relationships with customers and build trust, particularly when using this SaaS product.
Use the holidays for a occasion to express your gratitude to existing clients or customers who are VIP with lavish incentive, giveaways, presents and customized deals. Here are some suggestions from other SaaS and software businesses that they have used successful strategies:
- Create the "Holiday Bundle" promo using your preferred accessories, or even the possibility to offer a free education.
- Give a huge discount on your subscription or any upgrade software.
- Provide a promotional gift where customers are encouraged to pay for subscriptions or downloads for family members and friends.
- You can run an "Treat Yourself" promotion encouraging customers to buy something for yourself for the holidays.
- Provide a full year of subscription, or upgrade in a loyalty or referral program.
- Do something special to email newsletter users.
4. Reward your affiliates
Numerous affiliates, regardless whether they're individual or companies, may plan to take on the Christmas period, making it the perfect time to provide them with a greater percentage of their commissions or with a special offer that they can advertise.
What Can I Do?
Here are a few ways 's full-stack commerce platform can help you during the holiday season and beyond.
1. Support Information Management
If you are expecting a substantial rise in sales during the Christmas season, is your customer support team prepared for the holiday season? They can handle support in connection with purchases which will save you time and funds that can be used to sell more items during the festive season.
2. Localized Languages, Currencies as well as payment methods
To be competitive and gain when it comes to international markets, it is crucial for your company to provide the shopping experience that is in-country and can accommodate a wide range of languages, regulations and local preferences. region.
The most popular payment options vary based on where they are located. If you are able to discern a pattern among the most the most popular sections on your analysis, it can help choose the options for payment that should be available to global customers. It includes electronic wallets, such as PayPal as well as credit card as and wire transfers. If you provide the most popular option for payment, you'll have the capability to reduce abandonment of carts as well as decreases in payments.
offers a checkout option that is localized and automatically transforms the price of your product according to your customer's preferences for the local currency in addition to languages, and provides a variety of payment choices.
3. The Global Tax Management System and the Regulation Compliance
The global consumer doesn't like unanticipated tax or regulatory obligations that can be extremely stressful for shoppers.
Automatically calculates taxes, VAT and GST on a per-order basis and ensures compliance with regulations such as PSD2 and GDPR are automatically applied for impacted transactions.
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