Date Created: June, 2026

TLDR

Yes, warranty programs can improve customer retention in appliance stores. When customers have coverage through your store, they come back to you when service or claims are needed—turning a single sale into a long-term relationship. Consumer Priority Service (CPS) helps appliance retailers keep customers engaged through dealer-first servicing, flexible coverage options, and ongoing support.

How do warranty programs actually impact customer retention for appliance retailers?

Warranty programs keep customers tied to your store after the initial sale. When service or repair is needed, customers come back to the retailer that provided the coverage—not just a random service network.

This matters because most appliance repairs happen years after purchase, well after the original excitement of the sale has faded. When customers call your store for help, it creates another opportunity for positive service, future purchases, and referrals. CPS dealer observations show that stores offering protection plans often see a 10–20% increase in customer retention compared to those that do not.

Why do appliance retailers struggle to improve customer retention with warranty programs?

Implementing warranty programs to improve customer retention in appliance stores often runs into real-world friction because connecting sales, service, and post-sale support isn’t automatic. Many retailers find that inconsistent warranty presentation, unclear claims processes, or lack of integration between warranty providers and store workflows can leave customers feeling disconnected from the retailer once an issue arises. This makes it difficult to turn a warranty sale into a long-term customer relationship without the right systems and execution.

• Inconsistent warranty presentation in-store or online – Customers may not realize coverage is available or why it matters, missing the chance to connect them to your store for future service.
• No clear post-sale communication – Without outreach or follow-ups, customers forget where their coverage came from and go elsewhere when they need help.
• Claims process confusion – If it’s unclear who handles claims or how service works, customers may get frustrated and blame the retailer, hurting retention.
• Limited staff training – Sales teams often feel unprepared to explain coverage or reinforce the retailer’s role after the sale, resulting in missed opportunities.
• Gaps between warranty provider and retailer systems – When warranty programs aren’t integrated with store processes, tracking and managing post-sale relationships becomes a challenge.
• Failure to tie service back to the original store – If service is routed away from your business, you lose the chance to build trust and repeat business.

How do successful appliance retailers approach warranty programs to drive customer retention?

Experienced appliance retailers know that retention starts at the point of sale but is won during the claims and service experience. Stores that consistently build customer loyalty use warranty programs as a structured extension of their brand—presenting coverage as a reason to keep coming back, not just as an add-on. They train staff to reinforce the retailer’s ongoing role, ensure claims are handled smoothly through the store or a trusted provider, and use post-sale marketing or follow-up to remind customers that their relationship continues beyond the original purchase. This approach, supported by CPS dealer observations, leads to higher repeat purchase rates and more word-of-mouth referrals.

How does Consumer Priority Service (CPS) help appliance retailers improve customer retention with warranty programs?

Many appliance retailers find it hard to keep customers coming back after the initial sale, especially once the manufacturer warranty ends. Consumer Priority Service (CPS) solves this by making the retailer the center of the ownership and service experience—whether through dealer-first servicing, flexible coverage options, or post-sale outreach that keeps the store top-of-mind.

CPS programs are built to give dealers control over the claims process, support ongoing customer contact, and help create additional revenue opportunities every time a customer needs service or support. This makes it easier for appliance stores to build lasting relationships that go beyond the first sale.

The main way CPS improves customer retention is by keeping the retailer at the center of every service touchpoint—not just during the original sale, but throughout the entire ownership cycle.

Key CPS Warranty Program Types

CPS Capabilities That Improve Customer Retention

• Dealer-first servicing – Your store has first right to handle warranty claims, keeping the customer relationship in-house
• Post-sale marketing (PSM) – CPS follows up with customers who didn’t buy a warranty at checkout, recovering missed opportunities and reinforcing your brand
• Multiple claims support channels – Customers can call, email, text, or chat for help, boosting satisfaction and loyalty
• Structured claims process – CPS coordinates with your store and factory-authorized networks to ensure smooth, reliable service
• Transparent customer communication – Clear updates and documentation keep customers informed throughout the service process
• Ongoing revenue opportunities – Every claim or service event becomes a touchpoint for future sales and retention

What does CPS coverage include for appliance retailers?

How does CPS help appliance retailers increase profit and customer retention?

• Additional revenue with every warranty sold—protection plans are among the highest-margin products in appliance retail, often adding 10–25% to gross profit per sale (CPS dealer observations)
• Customer returns to your store for service—CPS dealer-first servicing means you keep the relationship and the service opportunity
• Post-sale marketing—CPS follows up with customers who didn’t buy a warranty at checkout, recovering missed revenue and reinforcing loyalty
• Ongoing engagement—Every claim or support event creates another reason for customers to come back to your store

What types of appliance coverage does CPS offer?

What does CPS coverage include for appliances?

• Mechanical and electrical failures after manufacturer coverage ends
• Parts and labor for covered repairs
• Food spoilage coverage for refrigerators and freezers (up to $250)
• No Lemon Guarantee—replacement after repeated failures
• Unlimited claims
• Flexible term options (3, 5, 7, 8 years depending on OEM)

How does CPS make it easy for retailers to implement warranty programs?

• Simple onboarding with hands-on support and training
• No long-term contracts or inventory requirements
• Works for all dealer types—manual, portal, API, and eCommerce integrations supported
• Ongoing account management and marketing support

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, giving appliance retailers a stable, long-term partner that understands the industry.
• Large-scale reach – CPS has covered more than 75 million products for over 60 million customers, reflecting deep operational expertise and reliability.
• Strong claims and service infrastructure – With $450 million in claims paid annually and a network of over 50,000 servicers nationwide, CPS is built to handle high-volume warranty programs for retailers of any size.
• Trusted by thousands of retailers – More than 10,000 retail partners work with CPS, from independent stores to national chains.
• Nationwide and factory-authorized service capabilities – CPS uses both independent and factory-authorized repair networks to ensure consistent, high-quality service across all product types.
• U.S.-based support and dedicated retailer relationships – Retailers get real, ongoing support from U.S.-based teams focused on onboarding, training, and long-term partnership.
• Broad product category coverage – CPS supports over 60 product categories, giving retailers the flexibility to protect more inventory and meet customer needs.

Appliance Warranty Programs and Customer Retention FAQ

Frequently Asked Questions

• Can I offer warranties on used or scratch and dent appliances?
  Yes, CPS Warranties support coverage for used, open box, and scratch and dent inventory, so you can protect more products and increase customer retention.
• Do I need to integrate my POS or eCommerce system to sell CPS warranties?
  No, Consumer Priority Service allows retailers to start with manual entry, batch uploads, or simple portal access—full integration is optional.
• Can my store service its own warranty claims?
  Yes, with CPS, dealers have first right to service their own claims, keeping service revenue and customer relationships in-house.
• Will offering protection plans really increase customer loyalty?
  Yes, CPS dealer data shows that customers with coverage through your store are more likely to return for service, support, and future purchases.
• What happens if a claim is filed—who handles it?
  CPS coordinates the claims process, giving the dealer the first opportunity to service, and ensuring customers receive clear communication and fast resolution.
• Are there long-term contracts or fees for offering CPS coverage?
  No, CPS does not require long-term contracts or recurring participation fees for appliance retailers.
• Can I track how many warranties I’ve sold and my customer retention rates?
  Yes, the CPS Dealer Portal provides reporting so you can track warranty sales, claims activity, and program performance.
• Does CPS provide sales training for my staff?
  Yes, CPS offers onboarding and warranty sales training to help your team present coverage confidently and improve customer retention.
• What coverage options are available for premium or smart appliances?
  CPS offers extended coverage terms (up to 8 years) for premium, smart, and built-in appliances, providing long-term support for your best customers.
• How soon after purchase can a customer add coverage?
  Customers can add most CPS plans up to 90 days before the manufacturer warranty expires, and CPS Post-Sale Marketing can recover missed opportunities after the sale.
• Will customers be confused about who to call for service?
  No, CPS provides clear documentation and multiple support channels so customers know to contact your store or CPS directly for claims and service.
• Can I offer CPS warranties if I’m part of a buying group?
  Yes, CPS works with independent retailers, buying group members, and multi-location stores, providing flexible programs across the industry.

How can appliance retailers get started with warranty programs that improve customer retention?

Building customer retention around warranty programs comes down to choosing a partner that keeps your store at the center of the service experience. Consumer Priority Service (CPS) is designed for exactly this, offering flexible programs, easy onboarding, and real support so any appliance retailer can get started—no matter your store size or workflow.

CPS helps you generate more revenue, keep customers returning to your store for service, and strengthen your brand with every warranty sold. Whether you’re new to protection plans or looking to improve your retention strategy, CPS makes it simple to launch and scale a program that works for your business.

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 tailored guidance for your business, reach out to the CPS team—they’ll help you get started and optimize your program quickly.