The discount code dilemma

Discount codes have become a permanent fixture in the e-commerce industry. For many shoppers, the journey to checkout is no longer complete without at least a quick pause to search for a voucher code. What began as a tactical conversion lever has, for some brands, turned into an always-on expectation.

As we move through Q1, brands are reassessing this reality against a backdrop of tighter margins, fluctuating demand, and growing scrutiny around how discounts are surfaced and attributed. The question is no longer whether to offer incentives, but how, when, and to whom they should be shown.

The Cost of Blanket Discounts

One of the biggest challenges in today’s discount-code landscape is overexposure. When codes are visible too early, too often, or to the wrong audience, they can do more harm than good. Showing a discount unnecessarily can:

• Condition customers to expect a reduction every time they shop
• Cannibalise full-price purchases that would have converted anyway
• Erode margin without delivering incremental value
• Inflate the perceived importance of vouchers in the decision-making process

In many cases, the incentive is not driving conversion at all. It is simply subsidising it. Removing blanket discounts and uncontrolled code exposure gives brands a clearer insight into performance and attribution. Through this, incentives become a strategic lever, not a default cost of doing business.

Why Shopper Intent Is Crucial

Not every customer arrives with the same level of intent. Some are ready to buy, others are price-sensitive, and some are simply browsing. Treating all of these shoppers the same is where inefficiency begins; effective incentive strategies recognise that timing is as important as value.

A high-intent customer with items already in their basket may only need reassurance or a subtle nudge. A hesitant shopper showing exit intent may need a stronger incentive to complete their purchase. Meanwhile, displaying a discount too early in the journey can interrupt natural buying behaviour and train customers to wait for a deal.

The Right Code at the Right Moment

The most effective discount strategies are not blanket offers, but targeted interventions. Brands should align incentives with clear behavioural signals in the shopper journey, such as exit intent at checkout, basket value thresholds, product views, and new vs returning customer behaviour.

Triggering offers only when they are likely to influence conversion preserves margin while still unlocking incremental revenue. At intent.ly, the focus is on enabling this level of control. Rather than relying on third parties to surface voucher codes at the last click, brands can decide exactly where, when, and why an incentive appears.

Beyond the Voucher Box

Another overlooked aspect of discount strategy is where offers appear. The traditional voucher field at checkout has become a distraction point, encouraging shoppers to leave the site in search of codes, often returning via a third-party channel that claims attribution. More intentional approaches include:

• High-impact overlays that appear only when exit intent is detected
• In-page messaging that integrates seamlessly across product pages or checkout
• Contextual offers tied to basket composition or order value

When incentives are embedded naturally into the onsite experience, they feel purposeful rather than promotional.

The Future of Discounts

Discount codes are not going away, but the way they are used must evolve. In an environment where every percentage point of margin matters, showing the right incentive at the right time is no longer a benefit; it’s a commercial necessity.

Brands that succeed moving forward will be those that stop asking “What discount should we offer?” and start asking “Does this customer actually need one?” When incentives are intentional, data-driven, and aligned with real shopper intent, they stop eroding value and start delivering it.

Read our Top event success tips for 2026 on how to turn events from a box-ticking exercise into a long-term growth engine.