Find More Details about Q4 2022. SaaS and Software Holiday Spend The Report

Oct 21, 2022

In the fourth quarter, it's considered the most important time for companies that develop software all over the world.

We confirmed this by looking at the revenue figures from more than 300 SaaS as well as software-based companies that utilize our billing platform. We discovered in the 4th quarter of 2014 that it was one of the top-performing quarters in all of 2014, in for both consumer and commercial sales.

We'd like you to test us Are you making a profit from this period? Software companies that are operating during November make between 11% to 22 percent higher than the annual average revenue.At the conclusion of the year, consumers are ready to make investments in subscriptions and other programs. Are you using your marketing budget wisely?

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More Information about Us, About Us Data and Us Information

The billing platform utilized by the company is utilized by more than 3500 SaaS as well as software businesses which are customers in more than 200 different regions and countries. This article will focus on the process of making sales and not the location of the company.

We'll also be looking at the monthly average revenue from all sales inside that specific country. Also, we'll look at the index of seasonality which measures how much a month's income is compared to average of the entire year.

It's suggested by our data that it's worthwhile putting in place Black Friday, Cyber Monday, and other holiday promotions in November and December.

The "holidays" may be larger that Black Friday and Cyber Monday. If you look at global holidays, the many holiday seasons you can leverage to run promotions that will generate profits.

It's a matter of being aware of the best way to go.

The U.S., many industries experience a dramatic increase in sales towards the end of each year. For example, toys retail stores, gaming and hobby retailers generate the majority of annual revenue during the holiday season. Is this really true with SaaS and software?

We used five years of records to examine the median income per month for software sold on the platform, which is situated within the U.S. We then assessed the relationship of every month's performance with the median over the whole year.

Sales were at their peak in November but keep growing through the year.

     Average US SaaS and Software Sales    

Average U.S. Revenue per Month (2017-2021)

If we glance at the quarter all its entirety and in relation to the prior three quarters we can see this fourth quarter to be much more productive than the previous three quarters.

US SaaS as well as software revenue during the period

Average U.S. Revenue Per Quarter (2017-2021)

The information is only available to U.S. However, what is the situation with the global market?

To better understand the preferences of users across the globe We conducted a study of SaaS as well as the purchasing of software in eight countries which have major players that include those of the U.S., Canada, Germany, Great Britain, India, Brazil, Australia and China.

The period of November through December's revenue compared with the typical monthly revenues in the entire year, we saw increased revenue in November, in October, and in the month of December. The highest sales are seen in November. The top level is greater elsewhere in all over the world market.

     Global average SaaS Software, and Sales    

Average global revenue per month (2017-2021)

Keep in mind that these figures are based on the location the client islocated, but not where the office of the business is in which would suggest it is possible that Black Friday and Cyber Monday deals really do drive an increase in revenues worldwide for SaaS and software firms.

     Average Monthly Revenue for each country (2016-2020)    

Average monthly revenue per country (2017 - 2021)

If we look at the numbers further, it's clear that, while Q4 remains the most robust quarter across all however it is evident that the pace of growth differs between nations. For instance, of the countries we compared, China and Germany had the biggest average spikes during November.

     B2B Compares to B2C Year End Performance    

A lot of evidence has been found that B2B sales are slowing down in the fourth period of year. It's possible that this is due to sales processes which have longer buying cycles or the model based on accounts. But, when you look into the B2B SaaS market as well as software sales in general and the final quarter is actually the most profitable quarter for the year. Its average is 114% greater than the average of quarter-to-quarter.

For a comparison of B2B's results when compared with B2C-based businesses We randomly picked 30 customers who only offer B2C or B2B markets around the world. After that, we examined their revenue from 2019 to 2020, in order to discover trends.

The 4th quarter in 2014 proved to be a total victory for B2B andB2C businesses.

B2B Versus B2C Sales Quarterly

Average b2b vs b2c revenue per quarter.

What are these revelations telling us regarding the methods SaaS and software companies can prepare for the holiday season? In the coming sections, we'll present some of the most successful strategies for your end-of-year promotions. In addition, we'll give you additional details that will help you find different strategies to boost profits during the entire year.

Five Christmas Strategies that can be used by SaaS And Software Companies

     1. Discover different ways to advertise and promote every Country Or Region

If you are conducting promotions across different nations or regions, consider the possibility of the localization of your promotions.

The rise of many countries' sales throughout November is evident in the context of Cyber Week, which is acknowledged by every country. This is especially true for Germany with the second largest increase in November of all the countries we looked at.

The largest increase was seen the most in China as a country which Cyber Week is not as significant as Singles' Day that falls on November 11. Based on our research, we found significant increase in the sales of China during Singles' Day.

The analysis of the information revealed possibilities at different points in the year as also. In the case of China, for instance, revenues decreased in June across all the countries we examined however the growth was higher in China probably due to the annual 618-day shopping day, the second-largest ecommerce day of the year in China. Single's Day is the largest.

Many companies offer promotions in conjunction with Black Friday and Cyber Monday. However, don't forget that there are many different holiday times throughout the year you can leverage to increase the amount of money you earn.

If your product has gained huge acceptance within a specific region It could be beneficial to establish a regional calendar of regional holidays and then create an offer for the region in line to it.

It's hard to know the future for your company However, you're conscious of the market that you're in. Look over your information and notice the patterns and trends that you discover.

All in all, data taken from different areas can provide an accurate estimate of the return on investment (ROI) in any marketing program you are running.

The time of the year for Christmas Also known as Important Shopping Days worth noting

These are just a few ideas you can think of. There will be several more specific to particular regions. It is recommended to look at local activities that you can market to.

  • Chinese New Year/Spring festival is observed from January 21 to the 21st of February
  •  It is popular in China and in other countries that have large Chinese or Sinophone numbers.
  • International Women's Day -- March 8
  • HTML0 National holidays in 27 countries across West, Central, and East Africa, Eastern Europe, Germany, China and North Korea
  • Singles' Day -- November 11 is the Anti-Valentine's Day holiday.
  •       It is a cult in Southeast Asia and Western Europe      
  • Diwali -- The 15th Day of Kartik The Hindu month in Kartik (Usually during the last week of October, or early in November)
  • It is celebrated across South Asia, Southeast Asia, Caribbean
  • Click Frenzy. This is the second Tuesday of November
  •       Australia      
  • Black Friday -- The Last Friday of November
  • North America, much of Western Europe, China, the majority of Africa, Brazil, and Mexico are all part of the group.
  • Cyber Monday
  • The majority of countries who participate in 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
  • It is a popular cult in Great Britain, Australia, New Zealand
  • International Workers Day or Labor Day -- May 1 is a major celebration throughout Europe, Russia, Africa, Central and South America the Monday that is the beginning of September in all of the U.S. and Canada; and also the day of October in Australia
  •       A lot-loved around the world      

     3. Marketing Strategies for Promotions Can be implemented into Q1

While sales for software have been slowing in the early months of 2018, it's possible that this slowdown isn't as severe as we were expecting. The sales in January were very strong (above 90 percent) in regions such as those of the US, Great Britain, Germany and Canada. A much bigger decline was observed in February.

Many sales and marketing teams have an absence in the beginning of each quarter to recharge or regroup. But, there's also a possibility of being noticed in a slower season.

If you start campaigns during the fourth quarter of the year, there's more than just the companies that are directly competing with you. When the time comes to close the year, mailboxes of individuals as well as social media feeds are flooded with promotions during the Christmas season. The most popular time of year, this is a chance to stand out.

The months of January and Februaries are the ideal time to test something completely novel or maybe even something big.

     4. You can track sales with the help of the Seasonality Index

Monitor the effectiveness of your campaign year after year to ensure the increase in expenditure does not surpass the increase in revenue.

Monthly-over month (MoM) or year-over-year (YoY) growth may tell that you something, but they're not the only methods to evaluate the effectiveness.

A seasonality index , similar to the one we utilized in our study, shows how a given month is in comparison to the typical month of a year.

It is recommended that you track the results of your campaign over time and evaluate the results with other campaigns you're conducting throughout the year.

Be aware that the growth in your monthly revenues may not give a full image of the success of your marketing campaign. It is for instance dependent upon your location as well as the day that the orders are placed on Cyber Monday, sales could continue throughout December. If you look only at the November sales figures There is a possibility that you don't see the entire of the story.

While you're planning your campaign , when you're planning your campaigns here are a couple more KPIs that we'd advise to keep in mind.

Minimum Advanced
  • All traffic on the website
  • Images from advertisements
  • Conversions that result from a website visit
  • Average order value (AOV)
  • Revenue on advertising expenditure (ROAS) all-around
  • Cart abandonment rate
  • New vs. returning customer sales
  • Affiliate vs. non-affiliate sales
  • Promotion vs. full-price sales
  • ROAS per product
  • ROAS per region

     5. Accent on Customer Recognition

If you're unable to achieve a profit of doubling in the final days of the year, then these holidays provide the perfect occasion to improve customer relations particularly if you're employing SaaS. SaaS product.

Make the most of the Christmas time to express your gratitude to existing customers as well as your most valued clients by offering lavish discounts including gifts, deals and promotions that are personalized. Here are some tips from others SaaS as well as software companies have used successfully:

  •       Design The "Holiday Bundle" promotional campaign using the most popular accessories or even an additional course.      
  • You can enjoy a huge price when you purchase an upgrade or plan.
  • Offer a gift-giving promotion in which customers are encouraged to sign up for subscriptions or purchase programs to gift to family and friends.
  • You can run the "Treat Yourself" promotion encouraging customers to purchase products for themselves to indulge at the season of giving.
  • You can offer a year-long renewal of your membership or upgrade to a loyalty or referral programme.
  •       Make something distinctive for newsletter subscribers.      

     4. Reward your affiliates

A lot of affiliates, whether they are businesses or individuals, plan on a push through the Christmas period, making Christmas the perfect moment to reward them by offering more commissions or an especially good offer to promote.

     What can I do to Help?    

There are a variety of ways in which an all-inclusive platform for business will benefit you over the season of Christmas and beyond.

     1. Support Managers are available for Inquiries and Support

If you expect significant growth in your purchases during the Christmas season, is your customer support staff prepared? Assistance for inquiries regarding purchases could be dealt with on your behalf to save your time as well as money that could be utilized to boost profits during the holiday season.

     2. Currencies, Localized Languages along with Payment methods

To be competitive and get noticed within the global market your business needs to give customers an experience that is localized , and is able to accommodate the vast varieties of laws, languages as well as local customs.

The most popular payment methods are based on the country of origin. If you are able to discern patterns across the most popular areas through your analytics on your site, and want to limit the variety of payment options that you can offer automatically to international customers. It includes digital wallets, such as PayPal along with credit cards and wire transfer. If you are able to offer the top payment options, you will be able to reduce abandoned carts and reduce the amount of payment.

It offers a checkout option that can be localized, and transforms the price of your products in the local currency of your customer and preferred language . In addition, it provides a wide range of payment choices.

     3. International Tax Administration and Regulated Compliance    

International shoppers do not want to be impacted by sudden tax or regulatory regulations that are extremely stressful for buyers.

Automatically calculates tax, VAT and GST on a periodic basis as payment processing is completed. It also assures that any applicable laws, such as PSD2 as well as GDPR is automatically applied to the affected transactions.

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