Coupons are considered one of the most effective marketing tools for businesses of all sizes in Thailand, whether retailers, restaurants, ecommerce platforms, or national brands. The use of coupons goes beyond mere price reduction; it serves as a strategic sales-boosting tool that can turn interested parties into buyers (improving conversion rates), help build brand awareness, foster customer retention, and attract new customers.

In this article, we’ll get to know what coupons are, what coupon formats are currently popular in Thailand, and why using coupons is an effective strategy for influencing Thai customer behavior. We’ll also cover the benefits and challenges of using coupons, as well as professional coupon management solutions that can help increase business return on investment and create a competitive advantage. These solutions allow businesses and retailers to create coupons conveniently and ensure an efficient customer redemption experience.

What’s in this article?

• What is a coupon?
  
• Why are coupons effective with Thai customers?
  
• Benefits of using coupons
  
• Precautions for using coupons
  
• What to look for in a coupon management solution
  
• How Stripe Checkout can help
  

What is a coupon?

Coupons are marketing tools used to promote and stimulate sales. Customers can use them for discounts, free products, as cash for services, or to receive additional privileges. Coupons are divided into two main types:

• Paper coupons: Traditional, printed coupons that typically feature a discount code or voucher ID. These are distributed at department stores and office complexes, or are published in magazines. Customers can redeem these coupons at the point of sale (POS). Examples include restaurant discount coupons found in shopping malls, promotional flyers from retailers such as Big C or Lotus’s, and coupons obtained from special events such as the Thai Teaw Thai travel fair or National Book Week. In many cases, paper coupons can also be used for online orders—for instance, restaurant coupons found on flyers that are redeemable by mobile app, or coupons from magazines that feature a QR code or discount code to be entered on a website.

• Digital coupons: Coupons that can be used on mobile phones, apps, websites, or at the POS. Usage depends on the coupon format, such as discount codes, QR codes, coupon links, or coupons obtained from loyalty programs. Users might be asked to enter discount codes on apps or websites, or to scan QR codes. Examples include discount codes for first-time orders from ecommerce platforms such as Lazada or Shopee, or free delivery codes for first-time orders from restaurants on delivery apps such as GrabFood or LINE MAN.

Paper coupons vs. digital coupons

Popular coupon types in Thailand

Discount coupons: Special offers provided by stores or service providers to customers to use for discounts on products or services under specified conditions. This is the most common form of coupon in Thailand. Examples include a ฿50 discount on a meal purchase of ฿300; discount codes for “double-day” sales (e.g., 9.9, 11.11, 12.12); limited-time coupon codes (flash sales); and codes for special occasions such as Valentine’s Day, New Year’s, or end-of-month promotions.

Free shipping coupons: Free shipping promotions are one of the most effective types of coupons for ecommerce businesses in Thailand. Examples include free shipping codes for orders over ฿500, limited-time free shipping codes to boost sales, or free shipping codes for birthdays.

New customer coupons: Coupons are commonly used to encourage new customers to try services. Examples include 10%–30% discounts for new customers, coupons for new annual memberships with discounts of 20%–50%, or promotional coupons for the first download and purchase on the app.

Referral coupons: Discounts or special privileges offered to customers who help share or recommend a brand, product, or service to friends, family, or people in their social network to expand the customer base. When the recipient of the coupon uses the unique code, both the referrer and the referee usually receive benefits, such as discounts, cash credits, or other rewards.

Review coupons: Discount coupons or special privileges that brands or platforms give to customers as a reward for posting reviews or sharing content (user-generated content: UGC) after a purchase or actual usage. Reviews are often accompanied by a hashtag featuring the brand or campaign name.

Buy one, get one (BOGO) coupons: This type of coupon is highly popular in the food and beverage industry, with coffee shops, and in the health and beauty sector. It serves as an effective tool for attracting new customers and boosting sales. Examples include offers such as “buy one drink, get one free,” “buy one bakery item, get one free,” or “buy one sunscreen, get one free.”

Cash coupons: A promotional offer involving a cashback reward calculated as a percentage of the total purchase amount, typically issued in the form of store credit or physical cash coupons. These coupons are popular because customers feel they get value for their money, making them suitable for motivating repeat purchases. Examples include receiving a free ฿100 coupon for making a purchase worth ฿1,000, or receiving a ฿250 cash coupon upon signing up as a new member.

Coupon from loyalty program reward points: Discounts, cash vouchers, or other benefits that customers receive by redeeming reward points—earned through the purchase of goods or services—in accordance with conditions established by each specific brand. These reward-based coupons serve to encourage repeat purchases and foster long-term brand loyalty.

Why are coupons effective with Thai customers?

Coupon marketing is a highly effective marketing strategy for Thai customers due to the following factors:

• Price sensitivity: Customers who are sensitive to price—and who tend to compare prices before making a purchase decision—demonstrate a distinct tendency to respond to discount promotions.

• Appreciation for value and savings: Thai people like promotions and the sense of getting a good deal; consequently, they tend to respond favorably to coupons and discount codes. Many buyers make purchasing decisions—whether for goods or services—based on the perceived value of obtaining items at a lower price, or simply to avoid missing out on special offers, rather than strictly out of necessity.

• Mobile purchasing behavior: Distributing coupons via digital channels is easy and effective because Thailand has a very high number of mobile and social media users—a factor that has, in turn, driven a correspondingly high prevalence of mobile-based purchasing behavior among Thai customers.

• Social media influence: Coupons are frequently shared via social media platforms—for instance, customers sharing coupons with friends, or Thai influencers reviewing products and promoting special offers. This practice drives widespread adoption and yields highly effective results, particularly through live-streamed sales sessions on TikTok that incorporate coupon giveaways.

• Reduced purchase risk: Coupons help customers perceive a lower level of risk when trying new products or deciding to buy from a new store. The discount received from using the coupon makes the purchase decision easier.

Benefits of using coupons

The benefits of coupon marketing are as follows:

• Boost sales: Coupons help accelerate the buyer decision-making process, effectively driving short-term sales, and helping clear excess inventory. This is particularly true for coupons with limited-time conditions, which can trigger a customer’s “fear of missing out” (FOMO)—a powerful psychological motivator for making a purchase. Many customers will rush to buy immediately to use the coupon before it expires.

• Drive repeat purchases: Coupons help encourage repeat purchases from existing customers, serving as an important tool for retaining the current customer base. For example, Starbucks Thailand offers 5%–10% discount coupons in its membership app; MK Restaurant offers birthday coupons through its official LINE account; and various businesses provide promotional coupons during holiday seasons to customers who’ve subscribed to their newsletters.

• Attract new customers: Selecting coupons tailored to your target audience can help boost conversion rates, allowing your brand to reach a wider customer base and increase the number of new customers.

• Increase average order value: Creating coupons with a minimum spending requirement, such as a ฿100 discount when spending ฿1,500 or more, can help increase both purchase volume and the average sales value per transaction. Using coupons can encourage customers to spend more—many customers admit that coupons often lead to unplanned purchases.

• Create a competitive advantage: In highly competitive markets, using coupons helps businesses close sales faster. Attractive discounts reduce the incentive to compare prices, inspiring customers to make purchase decisions more quickly. This gives businesses that use coupons a competitive advantage, especially when it comes to products or services that are similar to those offered by other companies.

• Increase brand awareness: Sharing digital coupons via various online channels is effortless, allowing brands or retailers to reach a wide range of customers, thereby increasing brand awareness and recognition. Additionally, coupons with attractive offers or discounts are often shared, which helps brands and retailers reach new customers easily without the need for additional advertising expense.

• Promote stores or launch products: Coupons can be used as a tool to motivate customers to try new products or buy from a store they’ve never tried before. Coupons are suitable for promoting or launching new products, as well as for promoting businesses or stores during their initial stages. Coupon discounts make buying decisions easier for customers; since they don’t have to pay full price, the perceived risk of trying a new product or store is reduced.

• Build customer relationships: Coupons are typically distributed through a brand’s or store’s communication channels—such as social media, websites, or mobile apps—often requiring customers to follow, subscribe, or register in order to receive the coupons or special offers. This process enables brands to communicate with customers consistently, thereby fostering customer relationships. It enhances brand recognition among customers and cultivates a sense of attachment, trust, and confidence—ultimately leading to brand loyalty.

Precautions for using coupons

While coupons offer many advantages for both customers and businesses, there are various precautions to consider before distributing and using coupons. These include:

Customer precautions

Check the terms and conditions
Coupons typically come with terms and conditions—such as validity periods, eligible products, or minimum purchase requirements. Customers should always review these details before using a coupon. This is because coupon promotions are sometimes designed primarily to grab attention—for instance, by advertising “up to 70% off”—when, in reality, additional conditions might apply, or the offer might be valid only for specific product categories.

Consider value before using a coupon

Although coupons offer discounts or other benefits, customers should consider the true value they provide before using them. Coupon strategies often stimulate unnecessary purchases. For example, “buy more, save more” or “buy one, get one free” offers require buying multiple items or reaching a minimum purchase total. Customers should therefore evaluate their actual needs before using coupons to ensure genuine value and avoid spending more than intended.

Beware of fake coupon links

Online coupons are widely circulated via social media and chat apps, which can expose users to the risk of online fraud. Thailand has reported a large number of online scams, where customers have lost assets or personal information after clicking on untrustworthy promotional links. To mitigate these risks, customers should obtain coupons only from official brand websites, trusted mobile apps, or recognized ecommerce platforms.

Business precautions

Make coupons special

Avoid distributing coupons so frequently that customers become accustomed to them and refuse to purchase products at full price. Businesses should instead treat coupons as something special—for instance, by offering them exclusively during holiday seasons, providing them to new members or followers, or using them as rewards for loyal customers. This approach helps preserve brand value while fostering a sense of exclusivity for your customers.

Display promotion terms and conditions transparently

Under the Consumer Protection Act of Thailand, advertisements or promotions must clearly state all terms and conditions, ensuring they are not false or misleading. This includes details such as expiration dates, minimum purchase requirements, usage limits per person, and participating products. Transparent communication builds trust and helps prevent customer complaints and legal issues.

Consider the costs and impact on profits

Careful cost calculation will help ensure that coupon use effectively boosts sales. It’s advisable to assess whether the increased revenue or sales from using coupons justifies the discount offered to customers. Additionally, the budget, duration, and terms and conditions of coupon use should be clearly defined to ensure there’s sufficient product stock and finances to support the coupon campaign, thereby preventing the promotion from negatively impacting profit.

Define target audiences and measure results

Coupons are most effective when used with customer groups that match the objectives of the campaign, such as encouraging new customers to make a trial purchase, increasing the purchase frequency of existing customers, or re-engaging inactive customers. In addition, business operators should monitor and analyze the campaign results by measuring key metrics such as the coupon redemption rate, increased sales volume, and the number of new customers acquired during the campaign period. This data can help improve strategies to achieve even better results in the future.

What to look for in a coupon management solution

When choosing a coupon management solution, consider a system capable of offering comprehensive functionality, performance, and expertise, as follows:

Creates professional-grade coupons

Choose a solution that can create professional-quality coupons or promotions. It should allow you to set the terms and conditions of various promotions yourself, such as minimum purchase quantities, expiration dates, percentage-based discounts, fixed-amount discounts, or time-specific validity periods. You can choose a solution such as Stripe Checkout, which offers a dedicated coupon management tool as an add-on feature for crafting discounts and promotions. This empowers you to create coupons with unique codes to prevent reuse, forgery, unauthorized code sharing, or reselling.

Supports coupon use at checkout

Choose a solution that supports the use of discount codes on the checkout page and can calculate discounts accurately—whether it’s a percentage discount or a “buy one, get one free” offer—to provide customers with a seamless coupon redemption experience. Additionally, the system should be capable of precisely validating coupon authenticity by verifying factors such as expiration date, usage conditions, number of uses per customer account, and participating products.

Integrates with other systems

You should select a coupon solution capable of seamlessly integrating with payment systems and other management platforms via Application Programming Interfaces (APIs), plugins, or other add-on apps. Ideally, it should connect with critical systems such as ecommerce platforms, payment gateways, inventory management systems, and customer relationship management (CRM) systems to ensure real-time data updates. This ensures data consistency across all platforms, reducing redundant tasks, and maximizing efficiency of automated workflows. For example:

• Integration with an ecommerce system enables customers to redeem coupons instantly during the checkout process.
  
• Integration with a CRM system allows businesses to issue coupons tailored to individual customer behaviors or purchase histories.
  
• Connection to a data analysis system such as Stripe Sigma enables the precise tracking of the results and performance of specific coupon campaigns.
  

Collects coupon usage data for analysis

One of the advantages of using digital coupons is the ability to systematically record and track usage data. Important data that can be checked in real time includes coupon IDs, promo codes, the number of new customers or members acquired, coupon usage rates, and revenue generated from each campaign. This data helps prevent code reuse, better control the budget, and accurately analyze campaign performance. Additionally, clear data recording helps reduce the risk of disputes with customers and can be used as evidence if there is an audit by the relevant authorities.

Has local law expertise

Choose a service provider with knowledge and expertise in local law—one that’s ready to comply with regional regulations immediately via a network of global business partners. This encompasses various legal domains, ranging from consumer protection in advertising—such as ensuring that advertisements and promotional materials are neither false nor misleading—to compliance with the Personal Data Protection Act (PDPA). The latter covers the handling of personal identifiers (e.g., email addresses, phone numbers) and behavioral data (e.g., purchasing habits), as well as the secure acquisition of consent for data storage and the usage of such data (i.e., consumer-permissioned data) strictly for the purposes explicitly disclosed.

How Stripe Checkout can help

Stripe Checkout is a fully customizable prebuilt payment form that makes it easy for you to accept payments on your website or application.

Checkout can help you:

• Increase conversion: Checkout’s mobile-optimized design and one-click checkout flow make it simple for customers to input and reuse their payment information.
  
• Reduce development time: Embed Checkout directly into your site, or direct customers to a Stripe-hosted page, with just a few lines of code.
  
• Improve security: Checkout handles sensitive card data, simplifying PCI compliance.
  
• Expand globally: Localize pricing in 100+ currencies with Adaptive Pricing, which supports 30+ languages and dynamically displays the payment methods most likely to improve conversion.
  
• Use advanced features: Integrate Checkout with other Stripe products, such as Billing for subscriptions, Radar for fraud prevention, and more.
  
• Maintain control: Fully customize the checkout experience, including saving payment methods and setting up post-purchase actions.
  

Learn more about how Checkout can optimize your payment flow, or get started today.