These soldiers had fought their way through while drenched in blood to be where they were today; dying on the battlefield was not scary for them, and no matter how many of them Xu Cheng slaughtered, there would be more to come after. Thus, creating fear was the only way to fight them.
He wanted to make them unnerved and afraid of this land, so when the soldiers headed back, the horror story in the Land of Mercenaries would spread in the country. They would then fear this land, since rumors would spread that the people that came here would lose their minds and shoot at their own people.