THE TRUE VALUE OF
A Customer Value Agreement (CVA) is a maintenance agreement between an end user and a Cat® dealer where Cat Genuine parts and customizable services are provided. These services can be customized to those customers who just need genuine preventative maintenance (PM) parts and an oil change/oil analysis to customers who may need a more complete and comprehensive maintenance contract with remote monitoring, guaranteed dealer response time or “beyond the engine” maintenance/repair.
“These agreements are truly about bringing value to the customer. While there is no doubt that service is at the heart of this, we are providing an overall partnership for a positive customer experience,” said Brian Snyder, Sales Manager for Cat brand aftermarket parts. “We’re maximizing that experience, because our Cat dealers are already working on the engine, and they have the expertise to help the customer with the overall envelope of their original equipment manufacturer (OEM) machine.”
Often, a CVA is deemed so successful, the customer will choose to renew it – and even agree to expand the scope of it. “Two to three months before a CVA expires, the Cat dealer and the customer will have a conversation about it,” Snyder said. “They may decide to increase the CVA scope of work, because the customer recognizes the benefit of partnering with the Cat dealer.”
“Maybe it’s a chipper that a municipality only uses when a storm rolls in. It may only operate for a few hundred hours per year and/or seasonally, but proper maintenance practices will help ensure the chipper runs properly at those critical times. Or maybe it’s a rock crusher that’s crushing 20 hours a day, and the only time available for maintenance is at a shift change, pre-planned maintenance time period or off-peak time period. The Cat dealer can work closely with the customer to schedule maintenance when it best suits the customer’s needs,” Snyder said. “So, by understanding the customer applications, load factors and operational expectations, the Cat dealer can customize services and contribute to the customer’s success.”
CVAs are focused on maximizing uptime, reducing ownership costs and increasing productivity by preventing unscheduled maintenance caused by premature component failure or wear out. A high-quality service agreement will authorize the Cat dealer to provide services such as inspections, maintenance and proactive repair work.
Customers covered by Caterpillar Customer Value Agreements also do not need to worry about disposing of used oil/fluids, used filters or analyzing oil samples (SOS). The Cat dealer can perform all of that work for them and dispose of the used materials in an environmentally friendly way.
Predictive Analysis is an additional service to consider when customizing a CVA. Using tools such as Cat Electronic Technician (Cat ET), factory training and SOS analysis, the Cat dealer can make sure there are no critical alarms/warnings, abnormal wear or events looming.
“Overall, the value of a CVA comes down to the fact that, partnering with a Cat dealer for scheduled maintenance reduces unscheduled downtime,” Snyder said. “Increased uptime increases customer’s profitability. That’s the ultimate advantage of having a CVA in place.”