Marketing Strategy on Personal Loans Top Up Using Survival Analysis: Case Indonesian Bank

Currently one of the banks in Indonesia is still applying the old way in making a top-up offer of personal loans to customers. This makes the number of customers who ultimately are interested in submitting a top up of only 22 % of total customers each month. In order not to lag behind a competitor it is necessary to devise a reliable marketing strategy, where the marketing campaign are not only based on the appropriate customer profile but also when the loan should be offered. This research tries to know the prediction time of debtor in proposing personal loans top up based on socioeconomic variable. In addition, it is also necessary to know the category of personal loans debtors that become the priority offered by the marketer so that the implications become more effective and efficient than the previous offering pattern by the telemarketer. The research method is using survival analysis. The result of the research showed that the socioeconomic factors that influence the debtor to top up personal loans at the confidence level of 5 % are Age, Marital Status, Number of Dependent, Living Status, Education, Region, Job Type, Lenght of Work, Salary, DBR, Credit Tenure, and Credit Limit. Only Gender which has no effect on personal loans top up. Opportunity of the debtor to propose personal loans top up at the event time of 0 to 6 months after credit disbursement is 0 %. Then from the seventh month of credit disbursement, the odds are higher with the highest top up opportunity on average debtor occurring in the 48th month since credit disbursement is 15 %. The managerial implication in this research is the priority of personal loans top up offered from 3 categories of debtor combination, the main priority is category 3 (122.897 debtors) because it has an top up opportunity in the 48th month is 28 %, the highest probability compared to the other categories of debtors as well as the average of all debtors. The findings in this study are expected to be useful for marketers in developing personal loans products and also in preparing a more targeted marketing strategy so that more effective and efficient for the banks. In addition, the expected implication is that the customer experience will be better because the product will developed more customer centric.