DACH expansion guide
Expanding into the DACH region? This guide offers a step-by-step approach to help Benelux-based B2B tech companies succeed.
What makes a successful DACH launch?
Expanding your B2B tech company into new markets is an exciting challenge, and one of the most promising regions for expansion is the DACH area (Germany, Austria, and Switzerland). While these markets share some similarities, they also have unique characteristics that require careful consideration. For Benelux-based tech companies looking to break into the DACH region, it’s important to adapt your B2B sales strategy and Go-to-Market (GTM) plan to effectively engage with these diverse markets.
1. Understand the DACH market dynamics
The DACH region is a key player in the European tech ecosystem. Germany, Austria, and Switzerland are home to a thriving and diverse range of industries, from manufacturing to fintech and software development. However, each country has its own business practices, regulations, and cultural nuances that you’ll need to navigate.
From a GTM perspective, this means you should conduct a thorough market analysis to understand the specific demand in each of the DACH countries and determine the most suitable entry strategy for each. For example, you might consider direct market entry for Germany, a more partnership-driven approach for Austria, and a specialized sales approach for Switzerland.
Benchmark: Typically, B2B tech companies aim for a 5-10% market penetration in their first 2-3 years in a new region.
Benchmark: A good benchmark for website traffic from new markets is 15-20% of total traffic within the first 6 months of launch, with social media engagement metrics increasing by 25-30% if localized content resonates well.
Benchmark: A good benchmark for website traffic from new markets is 15-20% of total traffic within the first 6 months of launch, with social media engagement metrics increasing by 25-30% if localized content resonates well.
Benchmark: An NPS score of 30-40 is typically considered good for B2B tech companies in new markets, with 50+ being exceptional.
2. Build a strong local presence and network
Establishing a presence in the DACH region requires more than just translating your website into German. Building relationships and networking with local stakeholders is key to gaining credibility and trust. Attend industry events, tech conferences, and local meetups in the DACH region. These will allow you to connect with decision-makers and potential customers in person.
From a GTM perspective, this requires identifying key local stakeholders, building strategic partnerships, and engaging with local influencers and experts in the tech space. These relationships will help open doors and can significantly impact the speed of market penetration.
Benchmark: Within the first 12 months, aim for at least 3-5 strategic partnerships or alliances.
Benchmark: Aim to attend 5-10 key industry events within the first year, generating at least 50-100 leads, depending on the event size and relevance.
Benchmark: A good target is to grow your LinkedIn network by 25-40% in DACH-specific connections within the first year.
3. Adapt your sales approach to local preferences
In the DACH region, decision-making in B2B tech companies is often more structured and hierarchical than in the Benelux region. Sales cycles may be longer, with multiple layers of approval before a decision is made. You’ll need to prepare for a more consultative and data-driven sales approach. Demonstrating the technical capabilities and ROI of your product or solution is essential to convince decision-makers.
From a GTM perspective, this means your sales team must adapt their approach to focus more on enterprise-level discussions, use case scenarios, and ROI projections. Additionally, you should train your sales staff on the specifics of navigating longer sales cycles and managing relationships with multiple stakeholders within large organizations.
Benchmark: Sales cycles in DACH tend to be longer than in Benelux. The average B2B sales cycle in DACH could range from 6 to 12 months, whereas in Benelux, it may be around 3-6 months.
Benchmark: A healthy lead conversion rate for B2B tech companies in new markets is typically between 15-25% within the first year, with growth expected as familiarity with the region and its buyers improves.
Benchmark: The average deal size in DACH is often larger (30-50% more) than in Benelux, particularly in industries like manufacturing or fintech.
Benchmark: An average customer retention rate for B2B tech companies in new markets is typically between 70-85% in the first 12 months, improving as relationships mature.
Hands-on insights
4. Comply with local data privacy and security regulations
The DACH region has some of the strictest data protection and privacy laws in Europe. As a tech company, you’ll need to ensure that your product and services comply with GDPR (General Data Protection Regulation) and ePrivacy regulations. Privacy concerns are top priorities for companies in this region, and non-compliance could lead to hefty fines and reputational damage.
From a GTM perspective, compliance with GDPR is not only a legal requirement but also an important selling point in this region. Being able to market your product as fully GDPR-compliant will give you a competitive edge in DACH and increase trust with local customers.
Benchmark: Aim for a compliance score of 90-95% in the first audit. Any issues should be addressed promptly.
Benchmark: No compliance-related issues should arise in the first 12 months. If issues do arise, they should be under 2-3 and resolved quickly.
Benchmark: An increase of at least 10-15 points in customer satisfaction scores after highlighting GDPR compliance in marketing campaigns.
5. Tailor your marketing strategy for DACH
Your marketing efforts in the DACH region should be as localized as your sales approach. While many people in DACH speak English, relying solely on English-language materials will limit your reach and impact. Consider translating your website, product brochures, and case studies into German and offering localized content that speaks to the unique needs of businesses in Germany, Austria, and Switzerland.
From a GTM perspective, creating localized campaigns that speak directly to the pain points and needs of DACH businesses will significantly improve your marketing effectiveness. In addition, leveraging channels such as LinkedIn, which is widely used in DACH for B2B networking, can help drive awareness and lead generation.
Benchmark: Aim for at least 15-20% of total website traffic from DACH in the first 6 months.
Benchmark: Aim for a CTR of 2-5% for DACH-targeted content, with a 15-20% increase in engagement compared to Benelux campaigns.
6. Identify and target the right customer segments
Before entering the DACH market, it’s important to define your ideal customer profile (ICP). B2B tech companies should segment the market by industry, company size, and the technology maturity level of the businesses they want to target. Germany is a leader in industrial tech, while Switzerland is strong in financial services, and Austria has a growing interest in innovative IT solutions.
From a GTM perspective, segmenting the DACH market by specific verticals will allow you to focus your sales and marketing efforts on industries that align with your strengths and product offerings. Additionally, you can tailor your approach based on the maturity and technology needs of businesses in each country.
Benchmark: The ICP match rate should be at least 30-40% for the first year.
Benchmark: Depending on the target industry, aim for 25-35% of leads to come from key industry segments.
Benchmark: Aim to generate 20-30% of total revenue from targeted segments within the first 12 months.
7. Leverage a holistic (tack) stack to scale your efforts
Finally, expanding your B2B sales efforts into the DACH region requires efficiency and scalability. Leverage digital tools, such as CRM systems, sales automation platforms, and account-based marketing (ABM) strategies, to streamline your outreach and follow-ups. These tools will help you manage a growing pipeline, track your interactions, and tailor your outreach to the specific needs of DACH customers.
From a GTM perspective, using these tools effectively will enable your team to scale their efforts quickly and efficiently. Additionally, using ABM strategies will allow you to target specific accounts in DACH with personalized outreach, improving the chances of conversion.
Benchmark: 80-90% adoption rate within the first 6 months.
Benchmark: Aim to reduce manual administrative time by 20-30% with automation tools.
Benchmark: A successful ABM campaign should generate at least 10-15% higher engagement rates and conversion compared to traditional lead generation methods.