The DataHero Blog

Slowdown in SaaS: Do sales slow during the summer?

July 11th, 2018

It’s approaching mid-July here in Santa Monica, where DataHero is based. Which means that the beaches are crowded and tourists are busy taking bird scooters to their next coastal destination. Add to that the fact that the World Cup is entering the late stages, Wimbledon is shaping up to be an exciting battle for this year’s winners, and one can’t help but wonder if this all leads to a slowdown in SaaS sales and general business activity during the summer months.

A quick search will yield other companies talking about a slowdown in the summer months for SaaS businesses, while SaaS investor Tomasz Tunguz of Redpoint Ventures argues that seasonality is largely irrelevant for SaaS companies. But, as a SaaS startup focused on data reporting and KPI dashboards, we wanted to take a look to see if this was actually true.

By connecting our Google Analytics data in DataHero, we were able to quickly pull our Monthly Sessions and build an easy data visualization to take a look at the past year’s monthly sessions. It does look like there was a dip in sessions in last July but came right back up in August, as well as a slight dip heading into this year’s summer months from just a traffic standpoint.

seasonality-in-saas-monthly-sessions

This of course is just one chart from one SaaS startup’s metrics, which just goes to show that it’s equally important to consider what data you are measuring and analyzing when looking to gain insights from your data. Ideally, you could look at Sales data from your Salesforce, Hubspot, Pipedrive or other Sales CRM as well as conversations or tickets data from Intercom, Zendesk, or Desk.com to get a sense for seasonality across other major SaaS metrics. For us, we are seeing a slight slowdown in organic Sales Leads during the summer but no recognizable trend when it comes to overall Sales or Customer Success metrics.

 

seasonality-in-saas-data-connectors

 

Ultimately, whether you agree with Tomasz that there is no seasonality within SaaS companies and that they are largely immune to the seasonality swings that affect many other industries, or whether you see a slight dip during the summer months from your own data, it’s worth tracking your business metrics consistently throughout the year to gain insights about your business performance and understand your own business in light of the broader industry trends.

 

By Alex Hsi

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