Cyber Weekend Benchmarking Information: 2023 SaaS and software holiday Spend Report
Q4 sales numbers usually outperform those of the other months due to the end of year holidays and their associated shopping cycles -- but what percentage of that increase translate to software and SaaS sales? And does it improve B2B business sales as well, or is it more just a B2C benefit?
acts as a retailer in charge for more than 3500 businesses that utilize our platform every day to sell digital products globally. We've examined aggregate sales data to give you insights into the importance of Q4 to be to your SaaS, software or any other digital good business.
The latest holiday trends may have started by offering Black Friday deals and spread into Cyber Monday but the whole weekend is now often described as Cyber Weekend -- and overall sales are generally strong as shoppers prepare for its many holidays. Are you taking advantage of all Q4 sales opportunities for your software-related business?
Below, we'll cover:
About Our Data
Where Data Are From? data are sourced
is used by more than 3500 businesses that help them sell digital products in over 200 territories and countries around the world However, we've narrowed the data we used for this study to make it applicable to software as well as SaaS firms.
The data below are also specific to where transactions took place, not in the location where the company is located.
For the global statistics, we selected eight countries -- that is, the United States, Canada, Germany, Great Britain, India, Brazil, Australia, and China -- to get the full picture of the worldwide sales.
when the Data Are From
The following data are gathered from 2018 to 2022, providing the most current information, showing trends that are consistent across a five-year period and avoiding any outliers skewing the results unnecessarily.
Additionally, we use a seasonal index to highlight every quarter's or month's sales against the year's daily or quarterly average.
US year-end trends in SaaS and software purchases
We began by looking at U.S. software and SaaS sales figures from 2018-2022 in order to get insights on quarterly and monthly sales trends over the last five years.
In order to calculate a monthly average, we compared the month's sales to this average to determine an approximate percentage. If, for instance, February's percentage is 90%, this means it is 10% more expensive in terms of sales when compared with the monthly average. If the November sales report shows a percentage of 111%, it implies that the sales of November are 11percent higher than the average for each month.
5YR average US SaaS and Software Sales per Month
While sales do peak in November at 11% higher than the average monthly, sales for the entire quarter are at their highest all through the year. October is particularly high, with sales being 4% more than the previous month and December being 8% more.
5YR Average US SaaS as well Software sales per Quarter
If you look at the average of quarterly sales, Q4 sales are higher by 8% and are so high that each of the other three quarters are just below the average.
Worldwide Year-End Trends for SaaS and software purchases
Moving 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 helps us get a better picture of how late-year software sales might change across the globe.
The bump actually increases in size.
5YR average Global SaaS and Software Sales per Month
Global sales reached a yearly high of 16% during November, compared to the monthly average. As in the U.S. data above, the months of October and December are the highest quarter of the year, with four and seven percent increases.
5YR Average Global SaaS and Software Sales per Quarter
From a quarterly perspective The Q4 numbers are 9% higher than the quarter's average and is once more that high enough to make all three quarters below the average.
While global Q4 quarterly sales were just one percent more than those 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% jump during the same monthwhich suggests that November is a huge sales opportunity across the globe.
5YR Average SaaS and Software Sales by Month and country
For more detail of how each month's sales break down by country We analyzed the data for the 8 countries we have included in our global overview. Below is a look at what monthly software sales changes look like using five years of information for countries like 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 point to a huge chance for SaaS and software businesses to make money in the fourth quarter, especially if you're targeting those countries as part of an overall expansion plan.
Furthermore, even though U.S. data suggest a smaller lift of only 11% in November, keep in mind this: North America accounts for a significant large share of global software and SaaS revenues, with one study revealing that 43% of the 2022 total software sales that is attributed to North America, and another reporting a share of as high as 57.5% of the 2020 world SaaS market which is due to the NA. So, a 11% lift in November within North America in the U.S. could mean a increase in revenue when the U.S. is a part of a larger piece.
B2C vs. B2B
The majority of businesses that sell software worldwide provide both B2C and B2B markets. However, whether your SaaS business focuses on both or just one is important to keep track of how the Q4 sales patterns differ across the two segments. The resulting information can assist you in determining how to focus marketing and sales efforts within those categories, specifically in the case of one sector offering bigger opportunity.
The resulting data show the similar trends across the year. The fourth quarter was the most profitable quarter in both segments.
B2C sales saw an average increase that was 11% higher than the average for the quarter that is not surprising in a season that is known for its promotion of consumerism- "consumer" is in the title.
Don't put too much faith in B2B revenue in the fourth quarter. Even though B2B revenues appear to be somewhat more steady throughout the year in comparison to B2C revenues, a five percent increase in Q4 is notable in a high-spending segment, which is taking benefit of deals at the end of the year regardless of whether the buyer is buying to themselves or for their business. Corporate credit cards remain in use by many people -- buyers of software, and who might need to find a great deal, especially if rigid departmental budgets play a role in the purchase decision.
In addition, B2B buyers could be looking to make use of up budgetary money before the close of the year to ensure their budget is not reduced next year. Or, they may be pushing their departments or teams to be equipped using the proper equipment prior to the beginning of the new year. Business-specific instances like these could result in increased sales for B2B in the fourth quarter despite all of the delays in work due to the holiday season.
Cyber-Week Strategies for SaaS and Software Companies
Wondering about the best ways to make the most of the boost in the fourth quarter? Whatever your goal is, whether B2B or B2C customers Here are some strategic ways to increase sales of software and SaaS sales by the end this year.
Give Partners Custom Coupon Codes
Additionally, you'll be able monitor how the sales promotion performed compared to other coupon codes.
Do You Not Have Any Partners To Give Discount Coupons Customized to? Locate Some!
If you're still not taking advantage of promotional partnerships, the holiday season can create new partnerships. Look for other SaaS and software businesses which offer products that compliments yours. (For instance, if for example you develop a database software search for companies who create front-end tools.)
Alongside custom coupon codes propose to swap Cyber Weekend promotions to each other's audiences in the form of emails, web banners, social media mentions and other methods that will help both companies boost sales at the end of the year.
Contact Your Prospects
Even if you don't decide to pursue partnership promotions -for instance, if it's an even bigger project that you'll need more time to prepare for -- emailing your existing contact list of prospects is quick and easy tactic to carry out.
Prospects can't take advantage of offers they don't even know about, so don't rely only on a website banner to attract the attention of prospective buyers on a visit to your website. Bring them into your website by sending them proactive mailers about coming, current, and extended offers to draw their attention wherever they may be.
Contact Your Current Customers
Like potential customers, they can't be upsold if they don't know 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. Examine user information for those who utilize your product majority of the time or generally, as they could be most likely to want additional features as well as ease of use.
- Upsell bigger subscriptions with additional features. Just like with downloads, if it is possible to identify your product's most powerful users, you can target the ones most likely to purchase more from your product.
- convert freemium customers into paying subscribers with an enticing sales. If freemium is a big component of your strategy, then a hefty Christmas sale could serve as a lever to make users love the features they have access to, yet realize they would really benefit from many more.
- The ability to upsell individual subscriptions to team 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 company, but if are able to gather contextual information about users (such such as the kind that can be gleaned by your own internal salesforce) the fourth quarter of 2018 could be a great time to target businesses with some customer penetration, and an opportunity to acquire many more.
- Cross-sell into entirely brand new products. If your model of business includes various standalone products, there's an enormous chance to reach the customer 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 chances you'll have.
- Switch users away from month-to-year subscriptions. It is the English phrase "A bird in the hand is worth two bucks" is often true in the business world, as revenue available to your organization now may be preferable to slightly higher revenue that is distributed gradually over the course of the year. Profit from buyers in a shopping mindset at the end of Q4: tempt them with a great offer to save money over the long term by switching their monthly subscription to a yearly one.
Leverage Social Media
Social media sites can be an excellent platform to commemorate holidays, and sharing festive posts from your business can make sense.
Many social media platforms have advertising services that can be targeted at users based on geography or by interests. You should consider taking advantage of the possibility to show regional holiday ads in applicable regions, or even the capability to show ads to people who have expressed desire to celebrate the holiday on the platform.
In contrast, organic posts on social media are often able to be seen by any users who follow you regardless of where they are located -- could be an excellent method of spreading sales, without restricting views to a tiny portion. Keep in mind, however, that if you have followers or an your audience is diverse, your holiday-specific organic posts are also likely to be so.
Give More Exciting discounts in the Target Geos
If you are experiencing greater profits in one particular area or you are looking to get into a different market, then promoting aggressive discounts in specific regions will help you benefit from Cyber Weekend sales increases.
In order to implement this, make use of GeoIP-based components on your site to promote region-specific discount codes.
Use's Store Builder Library to instantly apply the code at checkout. This will help increase your conversion rates.
localize Holiday Promotions
Although Cyber Weekend has become popular across the globe There are a few local celebrations that could be more profitable in each region or country you're targeting. Events such as Boxing Day can rival more U.S.-centric specials (such as Black Friday and Cyber Monday) for countries like Australia, the UK, Australia, and Canada.
Make sure you tailor your Christmas season promotions in accordance with geography to ensure you don't miss out on big opportunities in key areas.
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