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The only thing the DKoK fear would be failing the Emperor or maybe that everything they do wont help them repent their sins.

In the Night Lords novels they break an Assassin. also remember what Talos says to the admiral in the beginning of Soul Hunter saying that He'd met the emperor and that he wasn't a god. Fear that your serving a lie or are fighting for nothing can be more powerful than anything. there are a lot of parallels between the Night Lords and the Death Korps of Krieg as well. Both are used (or were used) as weapons of fear (albeit in different ways) so the story of the night lords could be used to instil fear.

They don't really have to make the DKoK feel fear, but doubt can work just as well.

I agree about the doubt part. The Night Lords like their enemies to die humiliating deaths and deny them last stands, to being picked off one by one might cause the kriegmen to panic and charge to their deaths. Also the Night Lords might target those who supply the DKOK instead causing just to run out of ammo or starve.

In the end, The DE would not use fear Tactics vs. DKOK. If they captured said guardsmen, the DR would feed off of other emotions instead. It would be more efficient for them to do as such.

As for the Night Lords, the only real scare tactics to use is to break them physically in Hand-to-hand combat. That I see is the only way to induce fear-like symptoms.

Not at all. The Night Lords pick off stragglers and hang up their mutilated carcasses in your path. And when you stop scouting at all to avoid sending more men to their deaths, then and only then do they strike.