Customer Support Agreements

BEST PRACTICE

“CSA Sales Coverage Key Performance Indicators (KPIs)”

INDUSTRY CLASSIFICATION Segment
Resource Energy & Trans Construction All
SALE TYPE
Point of Sale After Market Both Renewal
COMMON CUSTOMER SEGMENTATION
“Do it Yourself” “Work with Me” “Do it for Me”

PRIMARY FUNCTION/OFFERING
Operational Commercial Finance Other
CSA KPIs that are
reported

Executive Summary:

The main goal for the CSA area at the dealer is to ensure they meet their target, ensure great customer experience and
that the salesforce is meeting their goal.

In order to be effective, performance measurements should give us not only an accurate picture of how we are
performing relative to established targets and/or global benchmarks but also provide us with a prediction or
projection as to what we can expect in terms of future performance. Metrics drive behaviors and the following metrics
are designed to increase overall market penetration through Point of Sales (New / Used all products) and Aftermarket
(new aftermarket and renewals).

The metrics contained herein will provide insight into the performance of the overall CSA Business for Sales Coverage.
Those metrics are organized as follows:

 # of Active CSAs and coverage by Region

 # of Total CSAs Per package (e.g. Compact, Combined and Complete)
 % of Renewal per year per region
 Survey for CSAs
 # of CSA quotes by Rep by Region (Monthly and YTD)
 # of CSAs closed by Rep by Region (Monthly and YTD)
 Closure rate by Rep by Region (Monthly and YTD)
 % of CSA for total population by Region
 % of Renewal rate by Rep by region (Monthly, YTD and rolling 12)

THE INFORMATION HEREIN MAY NOT BE COPIED OR TRANSMITTED TO OTHERS WITHOUT THE WRITTEN PERMISSION OF CATERPILLAR
"DISCLAIMER: The information and potential benefits included in this document are based upon information provided by one or more Cat®dealers, and such
dealer(s) opinion of “Best Practices”. Caterpillar makes no representation or warranty about the information contained in this document or the products
referenced herein. Caterpillar welcomes additional “Best Practice” recommendations from our dealer network."
“CSA KPI’s” “Dealer” “April-2018” V.1
Caterpillar: Confidential Green
 The VALUE Story of Your Services

*Customer = Internal. *Value = Quantitative

Problem/Solution: In spite of the fact that it is human nature to want to report good news, the most valuable
performance measures drive desired behaviors and assist us in the identification of weak areas, poor practices and other
opportunities for improvement. Therefore, it behooves us to take a critical look at our performance via an honest
assessment of that performance. Only in this way are we able to correct small issues before they become major
problems.

Customer Value: Ensures Customer experience and execution of the services are meeting customer expectations.

Company Value: Successful CSA business (potentially this is a PINS/ POPS / POLS set of numbers, increasing will deliver
increasing results in these metrics and tangible $).

Novelty/Impact: N/A

The Journey/Approach

Collaboration & Experimentation:

It requires commitment from the dealer principal throughout the whole CSA structure. Services areas must invest and
be ready to deliver the offered service to the customers (qualified technicians, adequate service trucks, parts kits /
availability, Rental, logistics and supervision must be aligned to the service targets, proper IT applications to support the
operation, etc.); and Salesforce (Prime Product and Product Support) must be trained to properly offer and sell the value
of a CSA service and also must be fully aware of their individual and total goals. The CSA Specialist role is key to the
success of the program.

High-level Implementation & Outcome:

There were different stages. The operational structure was built upon a six sigma project, and the service packages
were developed based on field research and VOC. The idea was to create customer needs centric packages. After the
initial offers were launched, there were several modifications based on customers’ response to the CSAs service
packages. One of the lessons from this process is the CSA offers must be adapted to customer and/or industry
segment’s needs. For example Construction needs are different to Power Generation needs.

Process Map:
– # of Active CSAs and coverage by Region (targets should be apportioned based on the Dealer’s strategic goals
for total market penetration and any customer segmentation and industry / segment focus within the strategy)
– # of Total CSAs Per CSA Type (e.g. compact, Combined and Complete) (targets derived from strategy)
– % of Renewal per year and per region and per Rep (Monthly, YTD and rolling 12 (Good = 50%, Better = 60%,
Best = 70%+)
– Survey for CSAs
– # of CSA quotes by Rep by Region ( Monthly and YTD) (If were compared to Targets then you’d use Participation
Rate - Good = 60%, Better = 70%, Best = 80%+) (If the starting assumption is 100% of product represents an
opportunity for some form of CSA, then if the Rep has 100 pieces of equipment for his customers, where there
are already 20 units under CSA, then quoting 16 on the remaining 80 units would only be 20% participation – the
denominator would be reduced based on the customers need / willingness to have a third party CSA (e.g. I have

THE INFORMATION HEREIN MAY NOT BE COPIED OR TRANSMITTED TO OTHERS WITHOUT THE WRITTEN PERMISSION OF CATERPILLAR
"DISCLAIMER: The information and potential benefits included in this document are based upon information provided by one or more Cat®dealers, and such
dealer(s) opinion of “Best Practices”. Caterpillar makes no representation or warranty about the information contained in this document or the products
referenced herein. Caterpillar welcomes additional “Best Practice” recommendations from our dealer network."
“CSA KPI’s” “Dealer” “April-2018” V.1
Caterpillar: Confidential Green
 my own maintenance planning and strategy and infrastructure – so in SFM / CRM language = No Deal –
therefore reducing the number of deals that could have been participated in).
– # of CSAs closed by Rep by Region ( Monthly and YTD)
– Closure rate by Rep by Region (Monthly and YTD) (Closure Rate – Good = 70%, Better = 80%, Best = 90%)
– % of CSA for total population by Dealer, by Region, by Rep

Implementation Guidance
Ease of Implementing Cost to Implement (USD) Time to Implement
Low – Med - High Low – Med - High Low – Med - High
Insert top 2-4 areas of extra focus Insert actual or estimated cost for Insert estimated total time at your
required your dealership in USD dealership
KPIs were communicated, and No investment required to Short time to implement.
monthly meetings are held to implement KPIs within the
report the results of these KPIs. dealership

THE INFORMATION HEREIN MAY NOT BE COPIED OR TRANSMITTED TO OTHERS WITHOUT THE WRITTEN PERMISSION OF CATERPILLAR
"DISCLAIMER: The information and potential benefits included in this document are based upon information provided by one or more Cat®dealers, and such
dealer(s) opinion of “Best Practices”. Caterpillar makes no representation or warranty about the information contained in this document or the products
referenced herein. Caterpillar welcomes additional “Best Practice” recommendations from our dealer network."
“CSA KPI’s” “Dealer” “April-2018” V.1
Caterpillar: Confidential Green