Black Friday is almost right around the corner, a time when SaaS companies, businesses, corporations, and startups compete to deliver the best Black Friday and Cyber Monday SaaS deals of the year in a highly competitive industry. While customers are excited to invest, it’s also the most important sales event that everyone looks forward to.
To enhance the sales journey of potential customers, brands provide irresistible value and quality that converts them into loyal customers.
The date for this year’s Black Friday is November 25th, 2022.
Why is Black Friday Important for SaaS Companies?
Love it or hate it, Black Friday is no longer just a retail event anymore; many SaaS companies take huge advantage of it too as trends have shifted. Especially after COVID-19, the shopping trend has mainly changed to online interactions. Here is a quick review of the importance Black Friday holds for SaaS companies.
Lucrative Software Sales Opportunities
Because software companies are less likely to participate in Christmas sales, BF is the best weekend for SaaS suppliers to get a significant number of new customers. According to research done by Paddle, software dealers’ sales peak on Cyber Monday around 10 a.m. (UTC). That’s an entire weekend of numbers growing.
Businesses that give a discount on Black Friday and over the weekend can expect a 7x increase in orders, resulting in a 6x increase in revenue.
So, to all SaaS businesses, doing something is always preferable to doing nothing.
Customers With a Higher Lifetime Value
When it comes to customer retention, research reveals that businesses that sign up for a Cyber Weekend promotion have a higher lifetime value (CLV). This will improve your MRR, increasing your revenue far beyond the BF sales weekend.
If you provide a decent discount on your product or service on Black Friday, customers will be more likely to stick with you and make the most of their subscription. Furthermore, they would be less likely to churn if they were concerned about losing the same level of discount.
Consider Black Friday and Cyber Weekend as an annual marketing campaign, with the exception that you don’t need to promote the dates because they already have a distinguished reputation. It’s a common entry in the annual journal, and many people talk about it.
One weekend, one huge sale for your customers, and one great chance to increase your earnings.
Increase Your Clientele
Who doesn’t enjoy a good deal? Discounts have proven to be a good influence on revenue growth from new customers, as seen by the popularity of the volume discount pricing strategy within the SaaS market – Black Friday and Cyber Monday sales being no exception.
Is this something that just happens in the United States? Nope. Black Friday and Cyber Monday take place in most major marketplaces around the world and are a great way to not only make more money in a short period of time but also to extend your consumer base for the long term. Just keep in mind that retention is crucial.
What to expect from Black Friday 2022
As companies compete for more limited wallets against tough online competition, Black Friday 2022 should continue the trend of not only offering discounts but offering discounts on products you’ll want to buy.
According to Adobe Analytics, consumers spent $9 billion online during Black Friday 2020. This was the second-largest online spending day in U.S. history, coming in behind Cyber Monday 2020.
Predictions for Black Friday 2022 in the SaaS World
Neil Jose from Acodez firmly believes that this Black Friday/Cyber Monday season will be a good one for SaaS business owners as a considerable amount of customers will prefer shopping online due to the pandemic and this would surely impact SaaS sales positively. Something that we will be implementing this BFCM season is the bundle pricing strategy. This strategy encourages the customers to purchase more than one product so that they can avail the bundle product discount that we offer.
Hasan Abir from Apploye predicts that due to the global pandemic and rise in remote work, spending on software & technology services will likely rise during this Black Friday and year-end promotions.
Gaurav Sharma from Attrock leverages the Black Friday sales rush by offering a limited-time (2-3 days) lucrative deal on your SaaS plans. He suggests that we should start promoting the deal weeks in advance to spike your Black Friday sales. Use a combination of social media marketing, content marketing, and affiliate marketing to promote your Black Friday SaaS deal.
According to Irina Weber from SE Ranking, Black Friday is never going to lose its name and fame in the shopping dimension. Even with open stores, she predicts that online shopping sales are going to be higher than ever. Online shopping can give safety and security and can save time in comparison with traditional in-store shopping.
Mile Zivkovic from Better Proposals thinks that buyers will be more cautious this time around because so many of us bought apps we never used last year – just because they were cheap. Sure, you get a discount, but what’s the point if you never use the LTD or discounted app?
Best Black Friday SaaS Deals 2022
Chanty is an all-in-one team collaboration tool. It offers free unlimited searchable messaging, audio and video conferences, and built-in task management system with the Kanban board.
Black Friday deals:
- 60% off on the annual plan for the first 10 customers
- 50% off on the annual plan
- 1 month free + 30% off on the monthly plan
Timeframe: Nov 21, 2022 – Dec 6, 2022
Get the deal
After Black Friday ends, what should you do?
What happens once the day, weekend, or 14-day campaign is over?
Examine Your Findings
It’s time to evaluate your campaign when it’s completed. This can help you figure out what worked, what didn’t, and how to improve your campaign for next year if you have adequate tracking and reporting in place, as well as an understanding of which SaaS metrics to employ.
The following are some metrics to use to gauge the performance of your Black Friday campaign:
- Churn Rate: The percentage of customers who freely or involuntarily leave after the discount period has finished.
- Customer Desire to Pay: Determine your customers’ willingness to spend in advance of Black Friday next year.
- Monthly Recurring Revenue (MRR): The amount of recurring revenue gained and retained because of Black Friday subscriptions.
- Customer Acquisition Costs (CAC): Compare the expense of gaining Black Friday shoppers to the value they provide to your company.
- Customer Lifetime Value (CLV): The revenue generated from each of your Black Friday subscribers throughout the course of their subscription.
- Customer Renewal Rate: The proportion of customers who renew their membership when their current one expires.
Begin Planning Your Next BFCM Campaign
Prepare for the next Black Friday sales using your insights and analytics. This should help you focus your discount and marketing experiments to generate the most money for your company during the busy SaaS sales season.