Abstract
PT Pegadaian (Persero) is engaged in the business of providing credit services with pawn, non-pawning and gold investment products. One of the right marketing strategies to survive today's high competition is to maintain customer loyalty, researchers use several data variables available in the MIS (Management Information System) in the form of customer transaction frequency, how many products are taken by customers, customer satisfaction and direct interviews. to predict customer loyalty of PT Pegadaian (Persero) by implementing the c4.5 algorithm. The c4.5 algorithm is the algorithm used to create a decision tree. Decision trees are a very powerful and well-known method of classification and prediction. The decision tree method converts very large facts into a decision tree that represents the rule. Rules can be easily understood in natural language. This study aims to determine the accuracy of the C4.5 algorithm to predict customer loyalty of PT Pegadaian (Persero) and the most influential factors in loyalty. The results of the experimental application of the c4.5 algorithm show that the level of accuracy generated in predicting customer loyalty is quite high, namely 89.94% in data testing 1 and 94% in data testing 2. The application of the c4.5 algorithm in predicting customer loyalty of PT Pegadaian (Persero) can be well applied.
Highlights
PT Pegadaian (Persero) is one of the many financial institutions managed by BUMN
The author uses the C 4.5 algorithm on the basis of some literature from previous research from Teguh Budi Santoso with the title "Analisa Dan Penerapan Metode C4.5 Untuk Prediksi Loyalitas Pelanggan" with the results showing that classification with the C4.5 algorithm gets an accuracy of up to 97.5%, which means that the exact C4.5 algorithm is used to calculate the level of customer loyalty [1]
The second study entitled "Penerapan Algoritma C4.5 Untuk Prediksi Loyalitas Nasabah PT Erdika Elit Jakarta" by Khotibul Umam, based on the decision tree that has been made the attribute that has the most influence on customer loyalty is educational background because it has the highest gain value, namely 1.545292721 and as the root of the decision tree while the gender of the customer does not have much effect on customer loyalty because it is always at the last node with a gain value of 0.623919119 [2]
Summary
PT Pegadaian (Persero) is engaged in the business of providing credit services to Indonesian citizens with pawn, non-pawning and gold investment products. PT Pegadaian (Persero) is experiencing very tight challenges. These challenges arise as many credit lender services appear that offer lower interest rates and easy terms. PT Pegadaian (Persero) has challenges on how to retain customers. First: existing customers are more prospective, meaning that loyal customers will provide large benefits to the institution. Second: the cost of acquiring new customers is much greater than keeping and retaining existing customers. Fourth: the company's operating costs will be efficient if it has many loyal customers. Fifth: the company can reduce psychological and social costs because old customers have had many positive experiences with institutions. Sixth: loyal customers will always defend the company and even try to attract and advise others to become customers
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