Reward model development for referral reward program in delivery services based on customer preferences

Purpose This study aims to develop a referral reward configuration based on customer preferences in the context of logistics company delivery services. The study was conducted in two stages. The first stage involved ascertaining the configuration of reward attributes that matches customer preferences: reward type (utilitarian vs hedonic), reward size (smaller vs larger), reward scheme (reward-you vs reward-both) and reward visibility (public vs private). The second stage tested the best and next-best reward configurations in enhancing perceived attractiveness (PA), meta-perception and recommendation likelihood. Design/methodology/approach A survey was conducted with 294 customers of Indonesia’s largest state-owned logistics company, with conjoint analysis used to identify the preferred reward configuration. The second stage involved testing two reward configuration scenarios in two different groups, each comprising 119 respondents. Findings The reward configuration identified in the first stage included a utilitarian reward, a larger reward, a reward-both and a public reward. The second stage showed that this reward configuration significantly influences the likelihood of recommending. The mediating effect of PA and metaperception was found for the best plan, although the mediating relationship was not significant for the next-best plan. These differences highlight how variations in reward configuration shape customer responses in referral programs. Originality/value This study investigates customer preferences for reward attribute configurations as a whole rather than individually and examines the mechanisms through which the reward configuration affects customers.