Do appliance customers who buy warranties spend more over time?

Date Created: June, 2026


TLDR

Yes, appliance customers who buy warranties typically spend more over time.

Warranty buyers generate higher lifetime value through repeat purchases, service interactions, upgrades, and stronger loyalty. Consumer Priority Service (CPS) programs support this by keeping customers engaged and connected to the retailer after the initial sale. Retailers offering CPS coverage see higher revenue per customer and improved retention rates.

Yes, appliance customers who purchase extended warranties consistently spend more and remain more valuable to retailers over time. These customers are more likely to return for repeat purchases, take advantage of service interactions, and refer others based on a positive ownership experience. Consumer Priority Service (CPS) programs such as True Extended, 50% Back, and SND Coverage help retailers build long-term customer relationships while increasing profit per customer. According to CPS dealer data, warranty buyers often generate 10–25% higher lifetime value compared to non-warranty customers.

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How do CPS warranty programs increase customer lifetime value for appliance retailers?

CPS warranty programs increase customer lifetime value by driving higher repeat purchase rates, creating more service touchpoints, and building stronger brand loyalty after the original appliance sale.

Customers who purchase protection plans through Consumer Priority Service are more likely to return for future appliance purchases, engage with service teams, and refer friends and family. According to CPS observations, retailers see a 10–25% boost in customer value among warranty buyers, and positive claims experiences lead to higher retention and repeat sales. Programs like True Extended, 50% Back, and SND Coverage all play a role in keeping customers connected to the original retailer and encouraging ongoing engagement throughout the appliance ownership cycle.

Program Feature

Customer Impact

Retailer Benefit

CPS True Extended

Extends coverage after OEM warranty ends

Boosts customer retention and repeat purchase rates

50% Back Coverage

Offers a refund if not used

Increases loyalty and long-term value

SND Coverage

Protects scratch, dent, and open-box appliances

Expands revenue to non-traditional inventory

Claims Administration

Streamlined service and support

Improves satisfaction and referral likelihood

Why do appliance retailers use CPS warranty programs to increase customer value?

Appliance retailers use CPS warranty programs because they help turn one-time buyers into long-term, high-value customers. By offering coverage options like True Extended, 50% Back, and SND Coverage, retailers stay connected with customers well beyond the initial appliance sale. These programs generate more repeat purchases, create additional service interactions, and increase the odds of positive word-of-mouth and referrals. With CPS managing claims and support, retailers benefit from higher customer retention and increased revenue per customer without extra operational burden. CPS benchmarks consistently show that warranty buyers deliver greater lifetime value than customers who purchase products alone.

  • Increased profit per customer – CPS warranty buyers generate 10–25% higher lifetime value for retailers
  • Higher retention and repeat purchases – Customers with coverage are more likely to return for future appliances
  • More service touchpoints – CPS claims create ongoing engagement and additional sales opportunities
  • Stronger referral rates – Positive coverage experiences drive more word-of-mouth and recommendations
  • Expansion to all inventory types – Programs like SND Coverage allow retailers to monetize scratch, dent, and open-box sales
  • Simplified administration – CPS manages claims and support, reducing retailer workload while improving customer satisfaction

How do appliance retailers maximize the value of CPS warranty buyers?

Many appliance retailers maximize the value of CPS warranty buyers by integrating coverage programs into both their sales and post-sale workflows. Stores that consistently present CPS protection plans and follow up with service reminders or post-sale marketing see stronger repeat purchase rates and higher customer retention. According to CPS dealer observations, successful retailers often use claims interactions as an opportunity to build trust and recommend new products, turning warranty buyers into loyal, long-term customers who are more likely to refer others and upgrade appliances over time.

How do CPS warranty programs actually work to build long-term customer value?

CPS warranty programs work by extending the customer relationship well beyond the initial appliance sale. When a customer purchases coverage like True Extended, 50% Back, or SND Coverage, their experience with the retailer continues every time they need service, support, or information about their product. Consumer Priority Service handles claims administration, service coordination, and customer support, ensuring that warranty buyers receive timely, professional assistance throughout the entire ownership cycle.

For appliance retailers, this structure creates recurring engagement opportunities, increases the likelihood of future sales, and gives stores a reason to connect with customers again for upgrades or additional purchases. CPS dealer data shows that warranty buyers not only generate more profit per sale, but are also more likely to repurchase, refer, and engage with the retailer long-term compared to non-warranty customers.

Key Components of CPS Warranty Programs That Increase Customer Value

  • Long-Term Coverage Options – True Extended and 50% Back plans extend protection past the manufacturer warranty, giving customers more reasons to stay connected to the retailer.
  • Service and Claims Administration – CPS handles claims, repairs, and customer support, creating positive service experiences that drive loyalty.
  • Post-Sale Engagement – Every claim or service call is an opportunity to reinforce retailer value and prompt future purchases or referrals.
  • Coverage for All Inventory Types – SND Coverage expands the reach to scratch, dent, and open-box buyers, creating new loyal customer segments.
  • Revenue Visibility and Reporting – Retailers track warranty sales, claims, and customer engagement through the CPS Dealer Portal, helping identify high-value customer patterns.
  • Referral and Upgrade Opportunities – Satisfied warranty buyers are more likely to refer friends and family and return for upgraded appliances.

What does CPS typically cover for appliance retailers?

Consumer Priority Service (CPS) protection plans are designed to cover real mechanical and electrical failures that affect appliance function after the manufacturer warranty ends. Coverage is focused on giving customers confidence in long-term use, while setting clear expectations on what is and isn’t included.

What Does CPS Cover?

  • Mechanical and electrical failures after the manufacturer warranty ends
  • Parts and labor for covered repairs (motors, compressors, control boards, pumps, fans, sensors, etc.)
  • Service coordination and claims administration through CPS
  • Replacement or reimbursement if a repair is not feasible under coverage terms
  • Eligible new, open-box, scratch & dent, and qualifying used appliances (with appropriate CPS plan)
  • Optional benefits such as food spoilage allowance and delivery/haul-away reimbursement (where applicable)

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, chips, rust, paint or finish issues)
  • Non-functional parts (handles, knobs, shelves, decorative trim, glass shelves, etc.)
  • Consumables and wear items (filters, light bulbs, batteries, belts, gaskets, fuses)
  • Accidental damage, misuse, or neglect (unless accidental coverage is purchased, which is rare for appliances)
  • Environmental or external events (flood, fire, storm, improper installation, power surges)
  • Pre-existing conditions or issues present before coverage started

How does the CPS claims process work for appliance warranty customers?

A claim is triggered when a customer’s covered appliance experiences a mechanical or electrical failure after the manufacturer warranty has expired. Customers can file a claim directly with Consumer Priority Service (CPS) by phone, through the online portal, or by chat and email, making the process accessible and straightforward.

Once the claim is filed, CPS reviews the issue, verifies coverage, and coordinates service or repair using authorized technicians. If repair is not possible, CPS will arrange for replacement or settlement. This approach minimizes the retailer’s workload while ensuring customers receive reliable support and timely resolution.

Step

What Happens

Claim Initiation

Customer contacts CPS via phone, web, chat, or email to start the claim.

Claim Review

CPS verifies coverage, reviews the issue, and requests any needed information.

Service Coordination

CPS assigns an authorized technician or coordinates with the dealer for repair.

Repair or Replacement

Product is repaired or replaced based on plan terms and coverage eligibility.

Resolution

CPS closes the claim and notifies the customer and retailer of the outcome.

How can customers, dealers, and service centers contact CPS for support?

Consumer Priority Service makes it easy for anyone—customers, appliance dealers, or service centers—to get support or file a claim using multiple contact options. CPS provides responsive, U.S.-based support across phone, web, portal, chat, text, and email channels.

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

Service Centers

How does Consumer Priority Service (CPS) coverage compare to manufacturer and traditional warranty programs?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS (Consumer Priority Service)

Coverage Start

At product purchase

Often at purchase or after OEM ends

True Extended starts after OEM warranty, 50% Back starts at purchase

Total Coverage Duration

1–3 years typical

Usually 3–5 years

Up to 8 years depending on OEM and plan

Open Box/SND/Used Eligibility

Rarely eligible

Limited eligibility

Supported with SND/Open Box plans

Claims Handling

Manufacturer service network

Often third-party call centers

Dealer-first model with nationwide CPS coordination

Revenue Opportunity

No dealer revenue

Standard margins

Dealer controls pricing and profit; incremental revenue per customer

Retention Impact

Low after warranty expires

Moderate

High – more repeat purchases, referrals, and lifetime value

Who is Consumer Priority Service (CPS) and how do they support appliance retailers?

  • Established and experienced provider – Consumer Priority Service (CPS) has been supporting appliance retailers since 1990, giving partners access to decades of proven warranty expertise
  • Extensive coverage – CPS has protected over 75 million products for more than 60 million customers, demonstrating large-scale operational reliability
  • Trusted claims and service network – With $450M+ in claims paid annually and 50,000+ authorized servicers, CPS is equipped for high-volume warranty programs and fast response
  • Broad retail partnerships – Over 10,000 appliance retailers and dealer partners use CPS Warranties to drive profit and customer retention
  • Nationwide and factory-authorized service – CPS supports both independent and factory-authorized repair networks, ensuring dependable service across all product types
  • U.S.-based, dedicated support – Retailers work with real, U.S.-based teams for onboarding, support, and long-term partnership
  • Flexible, category-spanning coverage – More than 60 product categories are supported, enabling retailers to offer protection for a wide range of inventory

CPS Warranty Buyers FAQ

Do appliance customers who buy CPS warranties spend more over time?

Yes, CPS dealer data consistently shows that warranty buyers generate higher lifetime value, more repeat purchases, and greater long-term revenue for retailers.

How does CPS measure customer lifetime value for warranty buyers?

CPS tracks repeat purchases, service interactions, claims satisfaction, retention, referrals, and upgrade rates to measure increased customer value over time.

Why do warranty buyers return to the same appliance retailer more often?

Warranty buyers are more likely to engage with the retailer for service, support, and future purchases due to the ongoing relationship created by CPS coverage.

Can CPS coverage influence customer referrals and word-of-mouth?

Yes, customers who have positive claims experiences with CPS are more likely to refer friends and family to the original retailer.

What programs does CPS offer that help build customer loyalty?

CPS True Extended, 50% Back, and SND Coverage all create additional engagement opportunities and keep customers connected to the retailer after the initial sale.

Does CPS coverage increase opportunities for appliance upgrades?

Yes, retailers often use service or claim touchpoints as opportunities to recommend upgrades or additional appliances, increasing total revenue per customer.

How does CPS 50% Back coverage affect customer retention?

The 50% Back program incentivizes customers to return to the retailer for future purchases by offering a refund if the plan goes unused, further increasing retention.

Can SND Coverage help convert open-box and scratch & dent buyers into loyal customers?

Yes, offering SND Coverage gives these buyers confidence in their purchase and encourages repeat business with the retailer.

Are warranty buyers more likely to purchase extended coverage on their next appliance?

Yes, CPS dealer observations show that customers who purchase one warranty are more likely to choose protection plans again in the future.

Do warranty buyers generate more service and repair revenue for the retailer?

Warranty buyers often create additional service opportunities, especially for retailers who service their own claims under CPS programs.

How does CPS claims administration support customer retention?

CPS manages claims quickly and professionally, creating a positive experience that encourages customers to return and recommend the retailer.

Can CPS Post-Sale Marketing (PSM) help retailers recover missed warranty revenue?

Yes, CPS PSM contacts customers who declined coverage at checkout and converts a portion into warranty buyers, increasing overall customer value.

Are warranty attachment rates consistent across all appliance categories?

Attachment rates vary by category, but premium appliances, refrigeration, and laundry products typically see the highest CPS warranty participation and value growth.

How can retailers track the long-term impact of CPS warranty buyers?

Retailers can use the CPS Dealer Portal to monitor warranty sales, claims, customer engagement, and revenue trends over time.

How can appliance retailers get started with CPS warranty programs for customer lifetime value?

Consumer Priority Service (CPS) warranty programs are designed for appliance retailers who want to increase customer value and long-term revenue from every sale. By offering True Extended, 50% Back, and SND Coverage, retailers can create more service touchpoints, encourage repeat purchases, and build stronger customer loyalty throughout the appliance ownership cycle.

Getting started with CPS is straightforward—dealers receive onboarding support, implementation guidance, and access to tools that make integrating warranty programs into existing operations easy. Retailers can reach out to the CPS dealer team for tailored advice on building a program that fits their specific business model.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) works seamlessly for retailers of all sizes and models, from single-store operations to large multi-location dealers. If you want to see how CPS warranty programs can help your store drive long-term customer value, just reach out to the CPS team—they’re ready to walk you through the setup and get you started 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.

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