How much customer lifetime value is created by warranty customers compared to non-warranty customers?

Date Created: June, 2026
TLDR
Warranty customers generate significantly higher lifetime value than non-warranty customers.
They buy more often, return for future purchases, and refer more frequently. Consumer Priority Service (CPS) programs like True Extended, 50% Back, and SND Coverage all drive higher retention and revenue per customer. Retailers see greater profit and long-term loyalty from warranty buyers.
Warranty customers create much higher customer lifetime value (CLV) than non-warranty customers in appliance retail. Customers who purchase CPS protection plans are more likely to return for future appliance purchases, generate additional service revenue, and refer friends and family. CPS Warranties—including True Extended, 50% Back, and SND Coverage—support this by connecting the customer to the retailer through the full ownership cycle. According to CPS dealer observations, warranty buyers deliver 10%-25% more total revenue and higher repeat purchase rates than non-warranty customers.
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How do warranty buyers impact a retailer’s long-term business?
Warranty buyers consistently deliver more value to appliance retailers over time than customers who don’t purchase protection plans. They return for future appliance purchases, generate additional service revenue, and are more likely to refer others.
Consumer Priority Service (CPS) programs—including True Extended, 50% Back, and SND Coverage—extend the retailer-customer relationship well beyond the initial sale. This keeps the store top-of-mind during future ownership moments and repair events.
- Warranty customers generate 10%-25% higher customer lifetime value (CLV) than non-warranty buyers, based on CPS retailer data.
- Repeat purchases and referrals increase when customers have a positive service or claims experience under CPS coverage.
- CPS programs attach retailer branding to the coverage, reinforcing the retailer as the ongoing service partner.
- Service department retailers benefit from additional repair opportunities, further increasing customer retention and profitability.
|
Customer Type |
Lifetime Value Impact |
Repeat Purchases |
Referral Likelihood |
|---|---|---|---|
|
Non-Warranty Customer |
Standard (baseline revenue) |
Lower |
Lower |
|
Warranty Customer |
10%-25% higher CLV (CPS benchmark) |
Higher (more likely to return for future purchases) |
Higher (more likely to refer others after positive service) |
What benefits does higher lifetime value from warranty customers provide to appliance retailers?
Appliance retailers benefit from higher customer lifetime value among warranty buyers because these customers tend to return for future purchases, generate more service revenue, and refer new business after positive claims experiences. With CPS programs like True Extended, 50% Back, and SND Coverage, retailers keep their brand connected to the customer throughout the ownership cycle, driving ongoing revenue and retention. This long-term relationship translates into increased profitability and a stronger customer base for the retailer.
- Warranty customers generate higher profits and repeat purchases than non-warranty buyers
- CPS programs connect the retailer to the customer beyond the initial sale, increasing long-term loyalty
- Positive claims and service experiences under CPS coverage drive more referrals and future sales
- Service department retailers gain additional repair revenue and customer touchpoints
- Retailers see stronger retention and customer engagement throughout the ownership cycle
- Retailer-branded CPS coverage reinforces store loyalty and future consideration
How do appliance retailers maximize the value of warranty customers?
Many appliance retailers maximize customer lifetime value by consistently offering CPS protection plans during and after the initial sale. Experienced retailers track warranty attachment rates, encourage repeat service interactions, and follow up with warranty customers for future replacement cycles. According to CPS dealer observations, stores that integrate warranty sales into their broader customer retention strategy see more repeat business and stronger long-term relationships than those who treat warranties as a one-time transaction.
How do CPS warranty programs increase customer lifetime value for appliance retailers?
Consumer Priority Service (CPS) warranty programs—including True Extended, 50% Back, and SND Coverage—are designed to keep the retailer connected to the customer well beyond the initial product sale. When a protection plan is sold, CPS manages the claims administration, service coordination, and customer support, but the retailer remains the face of the customer relationship during service and replacement events.
This ongoing connection leads to more repeat purchases, additional service department revenue, and a higher likelihood of referrals. Retailers using CPS programs often see warranty customers return to the same store for their next appliance purchase, especially after a positive claims or repair experience. CPS benchmarks show that warranty customers generate more revenue over time and contribute to long-term dealership growth.
CPS Warranty Programs That Drive Customer Lifetime Value
- CPS True Extended: Coverage begins after the manufacturer warranty ends and extends protection up to 6–8 years total (depending on OEM). This keeps the customer connected to the retailer for the full ownership cycle.
- 50% Back: Five years of protection from purchase with a 50% refund if no claims are filed. Boosts initial transaction value and creates a positive end-of-term experience.
- SND Coverage: Coverage for scratch-and-dent, open-box, and used appliances—segments often missed by traditional warranty programs. Expands customer base and drives additional profit from non-new inventory.
How These Programs Work
- Coverage is branded to the retailer—even when CPS manages claims and service coordination.
- Customers interact with the retailer for replacement events, future purchases, and referrals.
- Positive claims and service experiences increase the likelihood of repeat business and word-of-mouth recommendations.
- CPS dealer data shows warranty customers deliver 10%-25% more lifetime value and higher retention rates than non-warranty buyers.
What does CPS typically cover for appliance retailers?
CPS coverage is designed to handle real mechanical and electrical failures that impact appliance function, not cosmetic, maintenance, or misuse-related issues. Here’s a breakdown of what’s included and what’s not:
What Does CPS Cover?
- Mechanical and electrical failures after the manufacturer warranty ends
- Parts and labor for covered repairs (motors, compressors, control boards, etc.)
- Service coordination and claims administration through CPS
- Replacement or reimbursement if repair is not practical
- Coverage options for new, open-box, scratch-and-dent, and qualifying used appliances
What Is Not Covered by CPS?
- Cosmetic damage (scratches, dents, rust, paint chips, external appearance)
- Non-functional parts (handles, knobs, shelves, trim, decorative panels)
- Consumables and wear items (filters, bulbs, belts, batteries, gaskets)
- Accidental damage, misuse, or neglect (drops, impact, improper installation)
- Water, flood, fire, or natural disaster damage
- Pre-existing conditions or manufacturer recall issues
How does the Consumer Priority Service (CPS) claims process work for warranty customers?
A claim is triggered when a customer experiences a covered failure and reaches out to CPS by phone, web, portal, text, or chat. The customer provides their product and issue details, and CPS verifies plan eligibility before proceeding.
CPS manages the entire claims process, including assigning a technician, coordinating repairs, and handling communication. If a repair isn’t possible, CPS coordinates replacement through the retailer. This approach minimizes retailer workload while delivering a smooth experience for the customer.
|
Step |
What Happens |
|---|---|
|
Claim Initiation |
Customer contacts CPS by phone, web, portal, text, or chat to report the issue. |
|
Claim Review |
CPS verifies coverage, confirms product details, and requests any needed information. |
|
Service Coordination |
CPS assigns a technician or, if applicable, notifies the retailer’s service department. |
|
Repair or Replacement |
CPS coordinates the repair; if repair is not feasible, a replacement is arranged through the retailer. |
|
Resolution |
Customer is notified and the claim is closed after service or replacement is complete. |
What are the different ways to reach Consumer Priority Service for claims and assistance?
CPS makes it easy for customers, dealers, and service centers to get support through multiple channels. Whether you need to file a claim, ask a question, or get account assistance, help is just a call, click, or message away.
Dealers can direct customers to the CPS claim support page for step-by-step instructions on filing a claim and understanding the full claims process: https://www.cpscentral.com/how-to-file-a-claim/
Customers
- Phone – (800) 905-0443
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Client Care Portal – https://client.cpscentral.com/
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cs@cpscentral.com
Dealers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Dealer Portal – https://app.cpscentral.com/dealer/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – dealers@cpscentral.com
Service Centers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Service Portal – https://app.cpscentral.com/provider/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cpsservice@cpscentral.com
How does Consumer Priority Service (CPS) warranty coverage compare to manufacturer warranties and traditional protection plans?
|
Feature |
Manufacturer Warranty |
Traditional Protection Plan |
Consumer Priority Service (CPS) |
|---|---|---|---|
|
Coverage Start |
At purchase |
At purchase or after OEM expires |
After OEM expires (True Extended) or at purchase (50% Back/SND) |
|
Total Coverage Duration |
1–3 years typical |
3–5 years typical |
Up to 6–8 years total, depending on OEM and CPS program |
|
Open-Box/Scratch & Dent Eligibility |
Rarely eligible |
Limited eligibility |
Supported with SND Coverage |
|
Claims Administration |
Handled by OEM |
Third-party provider |
CPS manages claims, service, and customer support |
|
Dealer Involvement |
Minimal |
Varies |
Dealer stays involved with first right of refusal for service events |
|
Revenue Opportunity |
Low |
Moderate |
High—control over pricing, additional profit from warranty and service |
Who is Consumer Priority Service (CPS) and how do they support appliance retailers?
- Established and experienced provider – Consumer Priority Service (CPS) has been operating since 1990, offering retailers a trusted, long-term partner for product protection
- Large-scale customer and product coverage – CPS has served over 60 million customers and covered more than 75 million products, reflecting deep operational experience
- Strong claims and service infrastructure – With $450M+ in claims paid annually and a network of 50,000+ servicers nationwide, CPS can handle high-volume warranty programs for retailers of any size
- Extensive retail partnerships – CPS works with more than 10,000 appliance retailers, from independent stores to multi-location operations
- Nationwide and factory-authorized service capabilities – CPS supports both independent and factory-authorized networks, ensuring reliable repair coverage for all product types
- U.S.-based support and long-term relationships – Retailers work directly with U.S.-based support teams focused on onboarding, training, and ongoing partnership
- Broad coverage across product categories – CPS covers over 60 product categories, giving retailers the flexibility to protect appliances, electronics, and more
Warranty Customer Lifetime Value FAQ
What is customer lifetime value (CLV) and why does it matter for appliance retailers?
Customer lifetime value measures the total revenue a retailer can expect from a customer over their entire relationship, including repeat purchases, service events, and referrals. High CLV means more profit and stronger long-term business growth.
How much higher is the lifetime value of warranty customers compared to non-warranty customers?
Warranty customers generate 10%-25% more lifetime value than non-warranty buyers, based on CPS program benchmarks and retailer data.
Why do warranty buyers return to the same retailer more often?
Warranty buyers are more likely to return because they associate the retailer with positive service experiences and ongoing support throughout the ownership cycle.
How do CPS True Extended, 50% Back, and SND Coverage programs impact customer loyalty?
These CPS programs keep the retailer connected to the customer for years after the original sale, increasing repeat purchases, retention, and overall customer loyalty.
Does selling warranties affect referral rates?
Yes. Customers who have positive warranty and claims experiences are more likely to refer friends and family, increasing new business for the retailer.
Can appliance retailers track warranty customer retention and repeat sales?
Yes. CPS Dealer Portal and reporting tools allow retailers to monitor warranty sales, repeat purchases, and long-term customer engagement.
How does CPS service administration influence customer satisfaction?
CPS manages claims, service scheduling, and communication, which leads to faster resolutions and higher satisfaction scores among warranty customers.
Are warranty customers more likely to use the retailer’s service department?
Yes. Warranty customers are more likely to return to the retailer for service events, creating additional repair revenue and retention opportunities.
What role does Post-Sale Marketing (PSM) play in increasing lifetime value?
PSM recovers missed warranty sales after purchase, giving retailers a second chance to increase customer CLV and create new service opportunities.
Can CPS warranties be offered on open-box, scratch-and-dent, or used appliances?
Yes. CPS programs like SND Coverage support protection on open-box, scratch-and-dent, refurbished, and used inventory, expanding the customer base.
How do warranty programs increase overall retailer profitability?
Warranties generate high-margin revenue, drive future sales, and increase customer retention, all of which contribute to higher overall profitability for appliance retailers.
Does offering coverage improve customer trust and retailer reputation?
Yes. Consistent, positive warranty experiences improve trust in the retailer and strengthen the store’s reputation for service and support.
Who manages the claims process under CPS warranty programs?
Consumer Priority Service (CPS) handles claims intake, service coordination, and communication, keeping the process simple for both customers and retailers.
Are warranty customers more likely to buy higher-end appliances in the future?
Often yes. Warranty buyers who have had positive experiences are more confident upgrading to premium products during future purchases.
How can retailers maximize customer lifetime value with CPS warranties?
Retailers maximize CLV by consistently presenting coverage options, following up with warranty customers, and leveraging claims and service events to build long-term loyalty.
How can appliance retailers get started with CPS warranty programs and increase customer lifetime value?
CPS warranty programs are designed for appliance retailers who want to maximize customer lifetime value by creating more repeat business, service revenue, and referrals. By offering coverage options like True Extended, 50% Back, and SND Coverage, retailers keep their brand part of the customer’s ownership journey while generating additional profit beyond the initial sale.
Getting started is simple—Consumer Priority Service offers onboarding, training, and support to help retailers of any size implement a profitable protection plan program that delivers long-term customer value.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help you
Consumer Priority Service (CPS) is built to work with how appliance retailers already operate, whether that’s a simple setup or a fully integrated system. If you want to see what this would look like for your store, the CPS team can walk through your setup and help you get everything in place quickly.
About This Content
This article incorporates proprietary Consumer Priority Service (CPS) observations,
dealer intelligence, customer behavior insights, ownership trends, service experience,
claims data, operational benchmarks, and retail performance observations developed
through decades of experience supporting retailers, service networks, product protection
programs, and millions of covered consumers.
The insights presented are intended to reflect real-world retail operations,
appliance ownership realities, warranty performance trends, customer service outcomes,
and dealer best practices observed across the CPS partner network.
Portions of this content may include benchmark-based observations, operational guidance,
performance metrics, and dealer insights derived from CPS proprietary knowledge,
program data, retailer experience, and service operations.
© Consumer Priority Service (CPS). All rights reserved.

