Looking to win over customers in the DACH region? If so, you’re in the right place. This Guide to Customer Experience in DACH is your comprehensive roadmap for understanding what makes shoppers tick in Germany, Austria, and Switzerland.
Today, we’ll dive into the current state of the e-commerce market, reveal key customer characteristics, and explore their expectations and shopping behaviors. We’ll break down the best strategies to elevate customer experience, from personalization to seamless omnichannel solutions, and even cover what DACH customers are buying (yes, both online or in-store.)
But that’s not all. We’ll also look ahead at future trends to help you stay ahead of the curve and engage your audience effectively.
Ready to learn how to connect with DACH consumers like never before?
Overview of the DACH E-Commerce Market
Any good research starts with the basics. In our case, it’s getting to know the DACH market.
Understanding the DACH region’s e-commerce landscape – encompassing Germany, Austria, and Switzerland – is an essential phase if you want to create a powerful customer experience. Thus, this section dives into the current state, growth drivers, and key trends that shape online retail in these economically robust countries.
The Current State of E-commerce in DACH
The DACH region, particularly Germany, boasts one of the most mature e-commerce markets in Europe. Despite being resilient, this e-commerce sector faced challenges due to economic turbulence in previous years.
Rising energy costs, high inflation, and disruptions related to geopolitical tensions impacted consumer spending power and online sales, which dipped by 11.8% to just under €80 billion in 2023. Fortunately, there is optimism for a modest recovery, with projections indicating growth in 2024 and beyond.
Austria and Switzerland share Germany’s trends but on a smaller scale. Both markets are characterized by high internet usage, tech-savvy shoppers, strong preferences for local websites, and quality products.
However, when comparing Austria and Switzerland, the second country has higher internet usage and the number of e-shoppers. It’s safe to say that Switzerland is a really attractive place for e-commerce development. This indicates a competitive but opportunity-rich landscape for new and established e-commerce businesses.
Check out more details:
- Germany is the largest e-commerce market in the region. Its projected revenue of $98.31 billion in 2024 and an annual growth rate of 8.23% underscore its dominance. The country’s strong digital infrastructure, high internet penetration, and growing middle class contribute to its e-commerce success. Additionally, German consumers are increasingly comfortable with online shopping, and the country’s logistics network is well-developed to support efficient e-commerce operations.
- Austria and Switzerland also exhibit promising growth potential, but they still lag behind Germany in terms of market size and revenue. Austria, with its smaller population, has a projected revenue of $10.72 billion in 2024 and a slightly higher growth rate of 10.25%. However, its smaller market size limits its overall impact on the region’s e-commerce landscape.
- Switzerland boasts high per capita income and strong consumer purchasing power. While it has a projected revenue of $13.37 billion in 2024 and a growth rate of 10.53%, its smaller population and complex logistics infrastructure due to its mountainous terrain can hinder e-commerce expansion.
Overall, this is the share of Germany, Austria, and Switzerland in the DACH e-commerce market.
Key Growth Drivers in the E-commerce Market
The e-commerce boom in the DACH region is driven by some factors – which, after all, contribute to continued development despite economic challenges. Among them are:
Mobile commerce (m-commerce)
The adoption of mobile shopping is surging across DACH. For example, in 2022, in Germany, 66% of all online purchases were made through smartphones. This state was aided by improved mobile-optimized sites and payment gateways.
Marketplace dominance
Platforms like Amazon.de, Zalando, eBay, and Otto remain at the forefront. They capture a significant portion of web traffic. In Germany, for instance, in 2023, marketplaces accounted for 83% of e-commerce traffic.
Sustainability and eco-friendly practices
Around 47% of German shoppers are willing to pay more for products produced and transported in environmentally friendly ways. This shift encourages retailers to invest in greener supply chains and practices like packaging and carbon-neutral shipping. But we will discuss this more later.
Source: Germany 360° Report 2024, by RetailX
Direct-to-consumer (D2C) growth
Brands are leveraging D2C channels to build stronger customer relationships and bypass intermediaries. This strategy has proven more resilient than traditional multichannel approaches, especially during periods of sluggish consumer spending.
Digital innovations
E-commerce businesses invest in technologies like AI and big data to enhance the shopping experience and optimize operations. ChatGPT and other AI tools are used for customer service, content generation, and data analytics, improving response times and personalizing customer interactions.
These factors collectively create a competitive but opportunity-filled market where businesses that adopt technological advancements, sustainability efforts, and evolving consumer expectations can thrive.
DACH Customers Characteristics
The DACH region presents a unique demographic landscape.
Germany boasts a population of above 84 million in November 2024. While this provides a massive market, note that this country has one of the oldest populations in Europe. The median age hovers around 46.8 years, which can influence consumer behavior and preferences. Below is how the distribution of men and women by age group looked on the last day of December 2023.
Austria, with a population of slightly more than 9,139,640 million in November 2024 (51.2% are women) offers a more balanced demographic. The median age is slightly lower, at 44.9 years, which indicates a younger population compared to Germany. This younger demographic can be more receptive to new trends and digital innovations.
Switzerland, the smallest of the three, has a population of more than 9,122,459 people in November 2024 (50,8% are women). Despite its size, Switzerland has the youngest population among the DACH countries, with a median age of 44.2 years. This younger demographic, coupled with high disposable income, makes Switzerland an attractive market for luxury brands and innovative products.
In terms of digital penetration, all three countries exhibit high levels of internet and smartphone usage (for instance, 77.70 million internet users in Germany at the start of 2024). The majority of the population in each country is online, making e-commerce a viable and growing industry. Social media platforms are also widely used. According to Minter’s survey, as many as 78% of 16 – 24-year-olds turn to social media when they look for information. It’s a big opportunity to engage with consumers and build brand loyalty.
Gain Even More Insights About DACH Customers To Serve Better Services
Generally speaking, the DACH e-commerce market shows that consumers value reliability, omnichannel experiences, fast services, and sustainability. They can even pay more for that.
Let’s check more information about DACH consumers.
- Consumers are tech-savvy, price-conscious, and value quality.
- Germany has strict data privacy laws, such as the GDPR. Thus, businesses must comply with these regulations to avoid legal issues and maintain consumer trust in data privacy.
- Austrian consumers are increasingly conscious of sustainability and ethical practices. Brands that prioritize eco-friendly and socially responsible products can gain a competitive edge.
- Austria has distinct regional differences, with urban areas being more digitally advanced than rural regions.
- Swiss consumers have high disposable incomes and are willing to pay a premium for quality products.
- Switzerland is a hub for luxury brands, and consumers are drawn to high-end products.
- Switzerland’s multilingual nature requires careful consideration of language and cultural nuances when marketing products and services.
Customer Expectations and Behavior
DACH customers are highly value-oriented, with an emphasis on quality, trustworthiness, and a seamless shopping experience.
While competitive pricing remains important, shoppers in Germany, Austria, and Switzerland place greater importance on:
- Reliability and trust. Most German consumers – 75% – prioritize reliability when choosing where to shop. To be honest, this is the core requirement. They also value product availability, using preferred payment options, accurate descriptions, easy return processes, etc. As you can see, DACH clients look for transparency. Trust is built through clear communication.
Source: Germany 360° Report 2024, by RetailX
- Customer support. Exceptional customer support is non-negotiable for DACH shoppers, as they expect prompt and effective assistance when needed. Be it when shopping, paying, delivering, or returning. They just want a seamless experience during the whole journey.
- Speed delivery. This brings us back to the delivery topic. Delivery is something we don’t like to pay for very much. We consider it something extra. But not everybody. When it comes to niche products that are only sold by a few retailers, the cost of delivery plays little or no role. 36% of Austrians and Germans and 33% of Swiss think so. But in any case, delivery must be fast. Whether it’s free or not.
- Personalized experiences. Brands that incorporate AI-driven personalization, such as tailored product recommendations and interactive chatbots, stand out in the crowded market.
- Research and reviews: DACH clients value good research and reading reviews. They just want to be informed. 67% of them conduct research, 52% compare offers, and 59% look at reviews before purchasing.
- Omnichannel integration. Many consumers in the region appreciate a seamless experience between physical stores and online platforms. This trend is exemplified by the popularity of click-and-collect services offered by 36% of the leading 100 retailers in Germany.
Source: Germany 360° Report 2024, by RetailX
Shopping Frequency and Expenses
As for the frequency of types of shopping itself, the results are mixed. In Germany, in 2023, as many as 91% of consumers ordered online and picked up in-store only less than 5 times. But, on the other side are people who ordered online for delivery between 5 – 20 times or more! As many as 84% of respondents did so.
Source: Germany 360° Report 2024, by RetailX
Regarding devices used for online shopping in 2023, smartphones won with 29%. Next were laptops and then desktop computers. The least were devices like smart TVs and speakers.
Source: Germany 360° Report 2024, by RetailX
It’s not a surprise that smartphones have become the primary device for online shopping in DACH, not only in Germany. A huge portion of consumers use their smartphones for all or most of their online purchases. Thus, businesses must ensure their websites and apps are optimized for mobile devices to cater to this trend.
Now, monthly online shopping expenses. Many DACH consumers shop online multiple times a week. The majority of consumers spend between €12 – €120 euros. A smaller but significant segment (4%) spends over €1,200 per month.
Source: Germany 360° Report 2024, by RetailX
Sustainability on Customer Experience
We already know that a big group of consumers actively look for eco-friendly options and are ready to pay more for them. Nevertheless, about 70% of German shoppers said they value sustainable packaging! This trend emphasizes that businesses looking to capture this market must embrace environmentally friendly practices.
What’s more, an increasing number of shoppers are participating in circular business models, such as buying and reselling used products. This practice supports sustainability and helps consumers save money amid economic challenges.
What’s interesting, some businesses in the region have adopted measures such as product services to align with sustainability-focused consumer values. This strategy appeals to the 47% of German shoppers who believe that extending the life cycle of products should be a priority for companies.
Payment and Fulfillment Preferences
Traditional payment options like bank transfers and credit cards are popular. However, third-party checkout options such as PayPal have gained significant traction, with 137.7 million users in Germany in 2024.
When asked about online payment methods used in the past 12 months, Germans chose third-party checkout services, invoices, and bank transfers, among others. Here are the results.
Source: Germany 360° Report 2024, by RetailX
PayPal was the most popular online payment method in Austria, with 80% of the population using it for online transactions. Despite that, cash and debit cards are leading the way in Austria when paying at the point of sale.
What’s interesting, in Switzerland, PayPal’s popularity declined a little bit. Still, it’s one of the biggest payment brands in the country. Going further, the most common online payments by type in this country are invoices and credit cards.
What about fulfillment, returns, and subscription preferences?
- Fulfillment. Although German consumers show patience for standard delivery times (averaging 5.66 business days), they prefer options that add flexibility, such as click-and-collect services and next-day delivery.
- Returns. A straightforward and customer-friendly returns policy is vital. Retailers that streamline this process (e.g., have established channels and dedicated support or offer collection services) tend to perform better. The additional contribution to handling returns in countries like DACH is a great idea. Especially since Germany is known for its high return rate. For example, in 2022, 44% of fashion products purchased were returned.
- Subscription: Interestingly, 31% of German consumers think subscription services are important or very important for them. They like offers like free delivery on orders throughout the year. Allegro and Amazon have such services.
Source: Germany 360° Report 2024, by RetailX
Top DACH Customer Experience Strategies
There are multiple ways to elevate the customer experience in DACH, and we will present you a few of the most valuable ones. These approaches focus on making the shopping journey seamless, engaging, and trustworthy.
The top 10 DACH customer experience tactics are:
Personalization
When we talk about personalization, we’re really talking about making customers feel seen and valued. DACH shoppers don’t just want to be another email on a list – they appreciate when brands take the time to understand their preferences.
Think about how nice it feels when a brand recommends something you love based on past purchases or browsing habits.
For instance, online retailers that use browsing history to suggest items aligned with customer preferences have higher conversion rates.
See? From tailored product suggestions to localized content, personalization turns casual shoppers into loyal fans. Even simple touches, like addressing someone by name in an email or curating their homepage, can make all the difference.
The Omnichannel Approach
Shopping should feel seamless, whether customers are browsing online or walking into a store. That’s where an omnichannel approach comes into play. But remember one thing: for DACH consumers, consistency is key.
Picture a shopper checking a product online, comparing options on their phone during a coffee break, and then buying it in a store. Connecting these touchpoints creates a smooth experience that builds trust and keeps customers coming back.
Options like “buy online, pick up in-store” are big wins here, making shopping not just convenient but enjoyable.
AI-Driven Analytics
AI + analytics = the secret sauces behind smart retail moves.
DACH retailers are leveraging AI to peek behind the curtain and understand shopping behaviors better. They know when to send out that perfect marketing email or can predict which products will fly off the shelves.
AI just takes the guesswork out of the game. And it’s not just for the big players; even mid-sized brands are finding ways to use AI for smarter, more tailored customer interactions.
The result? Shoppers feel like brands just get them.
Hassle-free Returns
Nobody likes a complicated return process, right? DACH customers are no different.
They value ease when it comes to sending things back. Retailers that make returns simple with clear policies and prepaid labels get a big thumbs up. That’s because it shows that the brand respects their time and trust.
Imagine buying a pair of shoes online, only to find out they don’t fit, but being able to return them without the headache. That’s the kind of experience that turns a one-time buyer into a repeat customer.
Sustainability Practices
This strategy is already obvious. DACH shoppers are increasingly eco-conscious, and they want the brands they support to care too.
In the past, sustainable practices were just a nice-to-have; now they’re more than essential.
This means offering options like reusable packaging or choosing carbon-neutral delivery. Simple steps like highlighting these practices can resonate with a customer’s values and make them more likely to support a brand.
Yes – it’s not just about selling products anymore. It’s about showing customers that their choices align with their principles.
Loyalty Programs
Everyone loves feeling rewarded. Loyalty programs that offer tangible benefits—like points they can redeem for discounts or exclusive member perks—go a long way.
Think of it like a VIP pass that makes customers feel special. Brands that take it a step further with personalized rewards based on shopping habits see even greater success.
These programs make customers feel like they’re part of an exclusive club.
Enhanced Customer Support
Good support is like the safety net of the shopping experience: it needs to be there when customers need it most.
DACH consumers expect multiple ways to reach out, from live chat to email and even social media. But speed counts too. Fast responses, ideally within hours, can be the difference between a happy customer and a frustrated one. And when customers know they can get help quickly and easily, they feel more confident shopping with a brand.
Mobile Optimization
Everyone’s glued to their smartphones these days. Thus, having a mobile-friendly app or website is a must. Not only in the DACH region. Shoppers want sites that load fast and are easy to navigate, whether they’re browsing on their lunch break or making a quick purchase.
Brands that invest in a smooth mobile experience, with options like mobile payments and a simple checkout process, stay ahead of the curve.
The result? More clicks, more purchases, and happier customers.
Data Privacy Assurance
Data privacy is more than just fine print. It’s a top priority, especially for Germans. They want to know their information is safe and handled responsibly. Brands that are transparent about their data policies and use strong security measures win reasonable clients.
Imagine shopping at a store that clearly explains how your data is used and keeps it secure. It’s a breath of fresh air in today’s world.
And customers who feel their data is protected are more likely to shop confidently and build long-term relationships with the brand.
Localized Focus
And, of course, a localized approach. When it comes to connecting with DACH customers, it really can help. Shoppers in this region appreciate brands that take the time to speak their language—literally and figuratively. This could mean offering a fully translated website, localized customer service, or even using familiar payment methods and shipping options.
Having country-specific domains (like “.de” for Germany) or local marketplaces adds a layer of trust and shows customers that the brand is tailored to their needs.
But it’s not just about language. Your brand must create a coherent atmosphere that feels personal and relevant. And if you focus on this level of detail, you will build lasting relationships with their DACH audience.
What DACH Customers Buy Online and Offline
You have already learned the strategies that will help you win the hearts of customers in the DACH region. You can experiment with them, apply them to your entire brand, or tailor them to specific campaigns.
The thing, that will help you improve the customer experience more effectively is knowing exactly what they buy – online and offline.
Okay, but why is this important?
Because each product category has its own rules. Some are dominated by emotions, others by rationality. Some products are bought on impulse, others after a long research.
Understanding these buying habits will help you adjust your approach and choose the right strategies.
See what customers are buying in each DACH country.
- Germany
The most commonly purchased items online include clothing and shoes. Additionally, 26% of consumers purchased drugstore and health products. This is how the big three looks as of September 2024.
For offline, Germans prefer buying groceries, drugstores/perfumery, pharmacies, and then clothing/apparel/shoes. They value the immediate availability and the ability to inspect products firsthand.
Worth noting: The distribution of industries for online and offline retail volume for Germany in 2023 was as follows:
- Austria
When it comes to online retail, the most popular categories include fashion, electronics, and hobby with leisure.
Moreover, Austrians continue to support local businesses and often prefer shopping offline for groceries, fresh produce, and specialty items.
- Switzerland
As of September 2023, Swiss consumers most frequently bought clothing, shoes, and books/movies/music/games.
Nonetheless, offline shopping remains important, especially for luxury goods, watches, and jewelry, where consumers prefer the in-store experience to assess quality and authenticity.
Understanding what people spend their money on can tell you a lot about customers’ expectations, habits, and shopping preferences. And now you are aware of what your intended DACH clients want to buy.
So, do your best and create experiences for certain categories that are just perfect.
The Role of Technology in Enhancing Customer Experience
Technology is growing in strength in each of the DACH countries. It is shaping the way companies connect with customers and meet their needs.
For starters, see the state of technology in Switzerland. Information is based on data from the European E-commerce Report 2023, by Ecommerce Europe and EuroCommerce.
- Switzerland
Switzerland is embracing digitalization, which has proven its importance during the pandemic. Social media commerce and live shopping have emerged as essential tools for Swiss retailers, especially SMEs, allowing them to reach their target audiences effectively, even with smaller budgets. The use of local marketplaces is another avenue Swiss traders are tapping into. They provide an additional sales channel that aligns with regional preferences.
AI has become a significant topic in Switzerland, thanks to increased media attention. While the technology is being explored for its potential, practical, day-to-day applications are still developing. One clear trend is the investment in data collection, evaluation, and customer journey management. These areas are receiving a lot of focus, as businesses seek to understand and enhance their interactions with customers.
ChatGPT has gained substantial attention, driving the creation of new startups and influencing sectors like content creation and customer service. Although it’s mainly used for product description generation and summarization at this stage, its future application could revolutionize automated customer support.
- Austria
Austria’s SMEs are fully on board with digitalization, despite economic challenges. The stats are promising: 84% of Austrian retailers have their own websites, and more than 30% engage in online sales.
Consumer engagement is also growing, with over 5.5 million online shoppers in 2024, supported by more than 12,000 e-commerce sites.
AI is leading the way as a transformative force, which promises a personalized and flexible shopping experience that aligns with customer preferences. A significant 8% of Austrian domestic retailers already use AI, while an additional 23% plan to integrate AI solutions in 2024. Collaborations between retail companies and tech partners have also led 2% of businesses to develop their own AI applications. These advancements reflect a proactive approach that balances innovation with awareness of potential societal impacts.
- Germany
Germany is seeing mixed outcomes in its adoption of new technologies. While self-checkouts gained initial traction in high street retail, challenges like fraud and theft have led some retailers to reconsider their use.
Nonetheless, the country’s e-commerce sector continues to expand, with a notable focus on utilizing SaaS solutions such as Shopify and exploring more advanced marketplace strategies. Companies are prioritizing investments in headless technologies, and data-centric technologies, such as:
- PIM (Product Information Management),
- MAM (Media Asset Management),
- DAM (Digital Asset Management),
- and MDM (Master Data Management).
These tools help manage the variety and complexity of data that flows through e-commerce channels. Also, headless technologies, like composable commerce and MACH (Microservices, API-first, Cloud-native, and Headless) architecture, are seeing increased adoption among larger firms. German companies are also relaunching shop software and their ERP.
When it comes to disruptive tech like ChatGPT, its current applications include optimizing customer service, enhancing chatbot functions, and processing unstructured data. However, more significant impacts are expected from GPT-4 and advanced AI platforms like Google’s Vertex AI or Amazon’s CodeWhisperer, rather than consumer-oriented tools.
Future Trends to Engage DACH Customers
There are clear trends guiding retailers on how to keep customers engaged and satisfied in the future.
In Germany 360° report 2024 by RetailX, Julie Farley from Semrush points out that:
- The German retail market is on a path to a gradual recovery, and the key to thriving will be a focus on mobile-first strategies.
- Apps and responsive websites are essential to capture the increasing number of consumers shopping on their smartphones.
- Data analytics is another must-have for personalized marketing. Knowing what your customers want and delivering it seamlessly makes all the difference.
- Eco-friendly practices and transparent reporting are not just trends; they’re now customer expectations.
- Efficient fulfillment options like click-and-collect and weekend deliveries will also play a notable role in meeting evolving consumer needs.
In the same report, Frank Trefzer from Tealium, highlights the importance of using data from every interaction (be it through loyalty programs or staff-assisted sales) to inform future touchpoints. He says that personalization doesn’t end at marketing, but it spans across all stages of the customer journey, creating a consistent, tailored experience that builds loyalty.
Moreover, the report shows that most consumers in Germany (72%) expect their shopping habits to stay the same – they will balance both online and in-store experiences in the same ratio as now. However, 13% anticipate spending more online, which signals opportunities for those who double down on digital strategies.
Source: Germany 360° Report 2024, by RetailX
Categories like groceries may see a spending boost both online and offline. 42% of respondents plan to spend more on it. Luxury goods and jewelry might face a dip, with 33% of consumers planning to cut back. Consumer electronics is a mixed bag. 25% of respondents expect to spend less, but 21% think they will spend more.
Moreover, when asked about which of the given shopping experiences customers would expect from their favorite brands in the future, they answered virtual shopping assistant and AR features most (not including “none of the above” answer).
Source: Germany 360° Report 2024, by RetailX
Last Words
Crafting an exceptional customer experience in the DACH region takes a thoughtful blend of strategy, technology, and genuine customer connection. Every touchpoint matters, and brands must understand what drives DACH shoppers if they want to perfect their online and offline experiences.
The evolving landscape in DACH suggests that retailers must stay attuned to consumer preferences, from emphasizing eco-conscious practices to offering mobile-friendly experiences, personalized recommendations, easy returns, enhanced support, and localized approaches. By doing so, they can position themselves favorably within this dynamic e-commerce market.
So, as you refine your strategy, keep one foot in innovation and the other firmly planted in understanding your customer’s habits.
It’s that balance that will keep your brand thriving in the vibrant DACH market.
Sign up for our newsletter so you don’t miss any important e-commerce information.
