7-step expansion guide
Expanding into the DACH region? This guide offers a step-by-step approach to help Benelux-based B2B tech companies succeed.
What does it take for 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.
Table of contents
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: 15-20% of traffic from new markets in 6 months, 25-30% rise in social media engagement if content resonates.
Benchmark: An NPS score of 30-40 is typically considered good for B2B tech companies in new markets, with 50+ being exceptional.
Hands-on insights
Conduct thorough research to grasp the specific demands and business practices of each country within the DACH region. This understanding will inform your market entry strategies, such as opting for direct entry in Germany or a partnership-driven approach in Austria.
Define key performance indicators (KPIs) aligned with local industry standards to monitor progress and identify areas for improvement. For instance, aim for a market penetration rate of 5-10% within the first 2-3 years.
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.
Hands-on insights
Participate in industry events, tech conferences, and local meetups to connect with decision-makers and potential customers. Target attending 5-10 key events annually, generating 50-100 leads.
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, creating localized, that directly addresses the unique pain points and needs of DACH businesses, while utilizing channels like LinkedIn for B2B networking, will significantly enhance marketing effectiveness and drive lead generation.
Dive deeper with our step-by-step guide to mastering value-based selling in the DACH region: 5 steps to master value-based selling.
Benchmark: DACH B2B sales cycles average 6-12 months, compared to 3-6 months in Benelux.
Benchmark: Healthy B2B tech lead conversion in new markets is 15-25% in year one, improving with regional familiarity.
Benchmark: The average deal size in DACH is often larger (30-50% more) than in Benelux, particularly in industries like manufacturing or fintech.
Benchmark: B2B tech customer retention in new markets averages 70-85% in the first year, improving over time.
Hands-on insights
Adopt a consultative and data-driven sales approach, emphasizing technical capabilities and return on investment (ROI) to appeal to the structured decision-making processes in the DACH region.
Prepare for longer sales cycles:
Be ready for extended sales cycles, averaging 6-12 months, and train your sales team to manage relationships with multiple stakeholders effectively.
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.
Hands-on insights
Adhere strictly to data protection laws, such as the General Data Protection Regulation (GDPR), to build trust and avoid legal repercussions. Achieving a compliance audit score of 90-95% in the first assessment is advisable.
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: A good benchmark is 10-20% of total leads coming from DACH-specific localized content.
Benchmark: Aim for a CTR of 2-5% for DACH-targeted content, with a 15-20% increase in engagement compared to Benelux campaigns.
Hands-on insights
Translate your website, product brochures, and case studies into German, and customize content to address the specific needs of businesses in each DACH country. This can lead to a 15-20% increase in website traffic from the region within six months. Leverage platforms like LinkedIn, widely used for B2B networking in DACH, to drive awareness and lead generation.
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.
Hands-on insights
Segment the market by industry, company size, and technology maturity to focus efforts on the most promising prospects. Aim for an ICP match rate of 30-40% in the first year.
Focus on key industries:
Target industries where each country excels, such as industrial tech in Germany, financial services in Switzerland, and innovative IT solutions in Austria.
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.
Learn about setting up a scalable team: How to build a high-performing team in new markets.
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.
Hands-on insights
Employ data-driven ABM strategies to deliver personalized outreach to specific accounts, enhancing conversion rates by 10-15% compared to traditional methods.