Learn More From Q4 2022 SaaS and Software Holiday Spend The Report
The fourth quarter is the most crucial quarter for software companies around the world.
We verified this by looking over the sales figures of more than 300 SaaS as well as software-based companies which use our bill-pay platform. We observed that the fourth quarter of 2014 is one of the top-performing quarters of the year for both business and consumer sales.
Here's our challenge to you: Are you taking advantage of the quarter? The software industry in November see 11% to 24% growth over their typical monthly revenue.At the conclusion in the calendar year customers are eager to pay for subscriptions and softwareDo you use your marketing dollars wisely?
In this report, you'll find:
- Changes to US software sales, by the month and by the quarter
- How software sales vary around the world throughout the year
- A comparison of B2B and B2C sales from quarter to quarter
- Strategies for taking advantage of holidays and other seasonal opportunities around the world
About Our Data
The billing platform of's supports more than 3500 SaaS as well as software businesses that have clients in more than 200 nations or regions. In this article, we'll concentrate on where the sales happen as opposed to where the business is.
We'll also be looking at the monthly average revenue of all sales made within a particular country by with a seasonal index that compares the month's revenue to the median revenue of a given year.
Our data suggests it's worth conducting Black Friday, Cyber Monday, and other holiday promotions in November and December.
However, the "holidays" can be much more than Black Friday and Cyber Monday. If you look at the world from a global perspective you will find a myriad of holiday seasons that you could use to promote promotions and increase revenue.
You just have to know where to look.
US Year-End Trends for SaaS And Software Purchases
The U.S., many industries experience a dramatic increase in sales toward the close season. For example, hobby, toy, and gaming stores make 35% of their total annual revenues during the holiday season. However, is this the case for SaaS as well as software?
Utilizing five years of data that we analyzed, we examined the average monthly revenue of software sold through 's platform to customers from the U.S. Then we looked at the comparison of each month to the yearly average.
We see that sales peak in November but remain strong until the close of the year.
Average US SaaS and Software Sales
When we look at the whole quarter, we see the fourth quarter as more successful than the three previous quarters.
US SaaS and Software Sales by Quarter
The data is exclusive to the U.S. However, what are global trends?
Global Trends at the End of Year for SaaS And Software Purchases
To understand consumer behavior across the globe, we examined SaaS as well as software purchases in eight major markets, including that of the U.S., Canada, Germany, Great Britain, India, Brazil, Australia and China.
Once again, when we assessed the month of October to December revenue compared to the annual monthly average, we did see increased sales in October, November as well as December. sales peaking in November -- and the peak is significantly higher on a global scale.
Average Global SaaS, Software and Sales
Keep in mind that the numbers depend on where the client is situated, not on the location of the headquarters of the company, which suggests these Black Friday and Cyber Monday sales actually drive a global increase in revenue for SaaS and software companies.
Average Monthly Revenue per the Country (2016-2020)
As we analyze the data further and look at the results, we find that although Q4 continues to be the strongest quarter for all countries, the increase differs significantly from one country to the next the country. In the case of nations we looked at, China and Germany had the biggest average spikes at the end of November.
B2B In contrast to B2C at the end of the year Performance
There's a lot of anecdotal evidence about B2B sales slowing down in the 4th quarter. It's possible that this is the case for sales processes with long buying cycles, or for those using accounts-based approaches. When we take a look at B2B SaaS and software sales We find that the final quarter actually is the top quarter in the entire year with an average 114% over the quarter-to-quarter average.
In order to compare the success of B2B in comparison to B2C companies We randomly picked 30 users that only serve B2B and B2C markets across the world. We then looked at the revenue they earned from 2019 to 2020, and 2021 in order to identify patterns.
It is evident that this quarter was an absolute winner for B2B andB2C businesses.
B2B vs B2C Quarterly Sales
What can these findings provide us with regard to what SaaS and software firms should prepare for the holiday season? In the coming sections, we'll offer best methods for launching campaigns at the end of the year. And we'll show you some more data to help discover additional holiday opportunities to drive profits throughout the year.
5 Holiday Strategies For SaaS And Software Companies
1. Take a look at different strategies to market for The Region or Country
If you conduct campaigns across different countries or regions think about localizing your promotions.
Many countries' increase in sales during November usually happens in the course of Cyber Week, which is observed by several countries around the globe. This is not just Germany with the second-biggest November lift of the countries we compared.
The biggest boost was derived from China -- a country that Cyber Week is not as big a deal as Singles' Day, which falls on November 11. Based on our research we observed a significant increase in sales in China during Singles' Day.
2. Include Regional and Other Competitive Holidays to Your Campaign Calendar
Our research reveals the potential for other times of the year as well. For example, while revenue dipped in June in all the countries we looked at, it increased in China possibly due to China's annual 618 shopping event, the second-largest ecommerce day for the nation. Single's Day is the largest.
The majority of companies run promotional events around Black Friday and Cyber Monday. But don't forget that there are many other celebrations throughout the year you can leverage for increased revenues.
If your product has great adoption in a specific region It could be beneficial to design a local holiday calendar for that area and then create a region-specific offer in line with it.
It's impossible to predict what will happen to the specific company however, you are aware of the markets you are competing in. Check out your data and see what trends and patterns you discover.
Generally, data from regions will provide you with a more accurate understanding of the return on investment (ROI) for every marketing campaign that you conduct.
Special Holidays or Significant Shopping Days Of Note
Here are a few things to consider. There will be many others in certain zones, and we recommend you to investigate activities in your regions that you market to.
- Chinese New Year/Spring festival -It is always observed between January 21 to February 21
- is celebrated in China and other countries with large Chinese or Sinophone population
- International Women's Day -- March 8
- National holiday in 27 countries throughout West, Central, and East Africa, Eastern Europe, Germany, China and North Korea
- Singles' Day -- November 11 An Anti-Valentine Day holiday
- The is celebrated throughout Southeast Asia and Western Europe
- Diwali -- The fifteenth day in the Hindu month of Kartik (Usually the end of October, or even early November)
- Celebrated by the people of South Asia, Southeast Asia, Caribbean
- Click Frenzy -- The Second Tuesday in November
- Australia
- Black Friday -- Last Friday in November
- North America, much of Western Europe, China, the majority of Africa, Brazil, and Mexico participate
- Cyber Monday
- Most countries that participate with 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 celebrated throughout Great Britain, Australia, New Zealand
- International Workers' Day or Labor Day -- May 1 in much of Europe, Russia, Africa, Central and South America The first Monday of September, in both Canada, the U.S. and Canada; and the first Monday in October in Australia
- Much-loved all over the world
3. Promotional Marketing Efforts can Roll Over into Q1
Although software sales are slowing in the first quarter of this year, the drop might not be as severe as you expected. In January, sales remained good (above 90 percent) in The US, Great Britain, Germany, and Canada. However, the biggest drop took place in February.
The majority of marketing and sales teams are able to relax in the first quarter to recharge or regroup. But there's also an opportunity to be noticed in a less competitive season.
If you launch campaigns in the fourth quarter, you're not only competing with those who are directly competing with you. When the time comes to close the year, the inboxes of people's social media feeds overflow with holiday promotions. Like any other time of year there's a lot of competition for attention.
It's the ideal time to experiment with something completely new or even big.
4. You can track your sales using a Seasonality Index
Analyze the results of your marketing campaigns over time to ensure the increase in spending doesn't exceed the increase in sales.
Month-over-month (MoM) as well as year-over-year (YoY) increase can tell you much, but those aren't the only way to examine your performance.
A seasonality index like that we have utilized in our guide will show how the current month compares to the average month in a year.
We recommend tracking each year's campaigns YoY and comparison of the results with other campaigns you run throughout the year.
Remember that an increase in monthly revenue may not give you an accurate picture of effectiveness of an advertising campaign. For instance, depending on your time zone and the date orders are made Cyber Monday sales could extend into December. If you just look at the sales figures for November it is possible that you don't see the whole picture.
While you're planning your campaigns Here are some additional KPIs that we would recommend keeping track of.
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5. Concentrate On Customers Recognizing Customers
Even if you're not doubling your revenue at the end of the year, the holidays are the perfect moment to build customer relationships, especially in the case of an SaaS product.
Take advantage of the Christmas season to express your appreciation to current or loyal customers by offering special promotions, gifts, giveaways, or personalized offers. Here are some ideas which others SaaS and software firms have been successful with:
- Create an "Holiday Bundle" promo using the most popular add-ons or even the option of a complimentary course.
- Provide a significant price on a subscription or upgrading software.
- Offer a promotional gift that encourages customers to purchase subscriptions or programs for family members and friends.
- Create a "Treat Yourself" promotion encouraging customers to buy something to treat themselves at the time of the holiday.
- Offer a year-long subscription, or upgrade in a loyalty or referral program.
- Do something special to newsletter email subscribers.
4. Reward your affiliates
Many affiliates, whether they're businesses or individuals, could plan to work through the holiday season This makes this a good opportunity to reward them with more commissions or a particularly good deal which they could promote.
How Can Help
There are several ways 's full-stack commerce platform can assist you over the season of giving and even beyond.
1. Support Inquiry Management
If you are expecting a substantial rise in sales during the Christmas season Is your support team ready for this? can manage purchase-related support inquiries on your behalf, saving you hours and budget which can be used for driving more sales during the festive season.
2. Localized Languages, Currency as well as payment methods
In order to compete and succeed in the marketplace of the world Your business needs to provide a localized shopping experience that accommodates a broad range of language, rules and preferences local to the area.
The payment methods that are most preferred differ according to location. If you observe a pattern of the most the most popular areas on your site analytics, it will help narrow down payment methods that you must offer global shoppers. These include digital wallets such as PayPal as well as credit cards and wire transfers. By offering the preferred option for payment, you'll be able to reduce the abandonment of your cart and declines in payments.
provides a checkout service that is localized that converts the price information into your customers' native currency, as well as their preferred languages and provides a variety of payment alternatives.
3. Global Tax Management And Regulation Compliance
Global shoppers don't want unexpected tax or regulatory requirements and can prove to be very disrupting to their purchase experience.
automatically calculates taxes, VAT and GST automatically at checkout and ensures regulations such as GDPR and PSD2 are applied automatically to impacted transactions.