How do appliance retailers use warranties to improve customer retention?

Date Created: June, 2026


TLDR

Appliance retailers use warranties to build long-term customer relationships and keep customers coming back.

Warranties extend the service connection beyond the initial sale, making the dealer the go-to resource for support and repairs. Consumer Priority Service (CPS) helps retailers offer extended coverage, manage claims, and maintain ongoing engagement with customers. This approach turns every warranty into a retention tool and additional revenue opportunity.

Appliance retailers improve customer retention by offering warranties that keep customers connected to their store long after the initial purchase. The most important function is that warranties create an ongoing service relationship, positioning the retailer as the primary source for help throughout the ownership cycle. With programs like Consumer Priority Service, retailers handle claims support, repairs, and post-sale communication, turning every service event into another opportunity to reinforce loyalty. CPS dealer data shows that customers who experience positive warranty service are significantly more likely to return for future purchases.

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How do appliance retailers use CPS warranty programs to strengthen customer relationships after the sale?

Appliance retailers use CPS warranty programs to maintain regular contact and service engagement with their customers for years after the original purchase. By administering claims, coordinating repairs, and offering ongoing support, CPS keeps the retailer front and center throughout the ownership experience.

This hands-on post-sale model ensures the customer always knows who to call, and that every service interaction reflects back on the retailer’s reputation. CPS benchmarks show that positive claims experiences drive higher retention and repeat visits, especially as appliances age and repair events become more likely. Retention rates often increase by 10-20% when retailers participate in the claims process or service their own customers under CPS programs.

  • Warranty programs create structured, long-term post-sale engagement
  • CPS manages claims, service, and customer support on behalf of the retailer
  • Dealers can service their own customers, strengthening loyalty and generating service revenue
  • CPS communication and claims processes keep the retailer top of mind during critical ownership moments
  • Customer retention and repeat purchase rates improve with every positive service event

Program Feature

How It Improves Customer Retention

Ongoing Warranty Coverage

Keeps the retailer involved for years after the sale, encouraging repeat business

Claims Support & Service Coordination

Makes the retailer the customer’s go-to resource for repairs and help

Dealer Service Participation

Lets stores service their own customers, building trust and loyalty

Post-Sale Communication

Ensures regular engagement and reinforces the relationship with every claim

Flexible Plan Options (True Extended, 50% Back, SND)

Allows retailers to cover more customers and inventory types, expanding retention reach

Why do appliance retailers use warranty programs to improve customer retention?

Appliance retailers use warranty programs like those from Consumer Priority Service to strengthen customer relationships, increase repeat business, and differentiate themselves in a crowded market. Offering ongoing protection and support keeps the retailer in direct contact with customers well beyond the initial sale, turning every service event into a loyalty-building opportunity. CPS warranty programs make it easy for retailers to stay relevant throughout the ownership cycle, manage claims efficiently, and keep customers coming back for future purchases or referrals.

  • Increases long-term customer engagement—warranty coverage extends the relationship beyond the sale
  • Drives repeat visits—service events and claims keep customers returning to the retailer
  • Builds trust and loyalty—handling claims and repairs reinforces the retailer as a reliable partner
  • Creates additional revenue—warranties generate profit each time a customer renews or files a claim
  • Differentiates the store—ongoing support and coverage become part of the customer’s ownership experience
  • Improves retention metrics—CPS dealer data shows positive warranty service increases repeat purchase rates

How do appliance retailers maximize customer retention with CPS warranty programs?

Many appliance retailers find that actively participating in the CPS warranty process—by engaging with customers during claims, offering clear communication, and delivering reliable service—leads to stronger retention and more repeat business. Stores that treat each claim or service event as a way to reinforce the customer relationship often see higher loyalty and more referrals over time. CPS dealer data shows that integrating warranty touchpoints into existing retention strategies delivers the best results for long-term customer value.

How do CPS warranty programs work to support ongoing customer retention?

Consumer Priority Service warranty programs are structured to keep appliance retailers connected with their customers long after the initial sale. When a customer buys a CPS protection plan, they’re not just getting coverage—they’re entering a long-term service relationship managed through the retailer. CPS handles claims administration, coordinates repairs or replacements, and ensures all communication flows back through the retailer whenever possible, so every service event becomes another point of contact and trust-building opportunity.

Retailers can choose from multiple CPS coverage options, including True Extended (which begins after the manufacturer warranty expires), 50% Back (a five-year plan with a refund incentive), and SND (covering scratch-and-dent, open-box, and used inventory). Dealers have the option to service their own customers or let CPS coordinate with factory-authorized or qualified service providers, always prioritizing a smooth customer experience. This ongoing involvement keeps the retailer top of mind for future appliance needs, repairs, or referrals.

Core Program Components That Drive Retention

  • True Extended Coverage: Begins after the manufacturer warranty ends, keeping the customer covered and engaged with the retailer for up to 6–8 years total (depending on OEM warranty length).
  • 50% Back Coverage: Five-year plan that starts at purchase—if unused, customers get half their premium back, encouraging plan activation and continued loyalty.
  • Scratch & Dent (SND) Coverage: Enables coverage for discounted, open-box, and used products, letting retailers support customers across their entire inventory.
  • Claims Administration: CPS manages all claim intake, verifies eligibility, and coordinates service or replacement, ensuring the retailer remains involved at every touchpoint.
  • Dealer Service Participation: Retailers have first right of refusal to handle claims, creating opportunities for additional service revenue and relationship building.
  • Post-Sale Communication: Customers receive clear, ongoing guidance on claims, coverage, and service options, keeping the retailer top of mind throughout the ownership cycle.

CPS Program

When Coverage Starts

How It Supports Retention

True Extended

After OEM warranty ends

Extends retailer-customer relationship long-term

50% Back

At purchase (runs 5 years)

Encourages engagement and loyalty with refund incentive

SND Coverage

Day 31 for used/open-box/SND

Lets retailers cover more customers and inventory types

What does CPS typically cover for appliance retailers?

Consumer Priority Service (CPS) coverage is designed to protect against real-world mechanical and electrical failures that disrupt appliance operation, while setting clear boundaries on what is not covered. Here’s how it breaks down for most CPS appliance programs:

What Does CPS Cover?

  • Mechanical and electrical failures after the manufacturer warranty expires
  • Parts and labor for covered repairs (motors, compressors, control boards, etc.)
  • Service coordination and claims management through CPS
  • Replacement or reimbursement if repair isn’t feasible under coverage terms
  • Food spoilage reimbursement for covered refrigerator/freezer failures (up to $250)
  • Coverage for new, open-box, scratch-and-dent, and qualifying used appliances under applicable programs

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, rust, paint, or appearance-only issues)
  • Non-functional parts (handles, knobs, shelves, decorative trim or glass)
  • Consumables and wear items (filters, bulbs, batteries, belts, gaskets, hoses)
  • Accidental damage, misuse, abuse, or neglect
  • Environmental or external damage (flood, water intrusion, fire, storms, improper installation)
  • Failures covered by the manufacturer warranty or resulting from pre-existing conditions

How does the CPS claims process work for appliance retailers and their customers?

Claims are triggered when a customer experiences a covered mechanical or electrical failure and contacts CPS through phone, web, portal, text, or chat. The process starts with CPS reviewing claim eligibility, verifying coverage, and gathering the necessary details directly from the customer.

Once eligibility is confirmed, CPS coordinates the service—either by involving the retailer’s own service team (if the store chooses) or by dispatching a qualified technician from its network. CPS manages communication, scheduling, and follow-up, so the retailer can stay involved without getting bogged down in administration. Customers are kept informed throughout the process, and claims are resolved through repair or replacement as appropriate.

Step

What Happens

Claim Initiation

Customer contacts CPS by phone, web, portal, text, or chat to report the issue

Claim Review

CPS verifies eligibility, confirms coverage, and requests any additional information

Service Coordination

CPS assigns the claim to the retailer’s service department or a qualified technician

Repair or Replacement

Product is repaired or replaced, following coverage terms

Resolution

CPS communicates outcome and completes claim, keeping the retailer and customer updated

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

Consumer Priority Service makes it easy to reach a real person for claims, support, and general assistance with multiple contact options for customers, dealers, and service centers.

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 CPS warranty coverage compare to manufacturer warranties and traditional protection plans?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS

Coverage Start

At purchase

At purchase or after OEM

After OEM (True Extended) or at purchase (50% Back)

Total Coverage Duration

1–3 years typical

3–5 years total

Up to 6–8 years total (depending on OEM + CPS term)

Open-Box/Scratch & Dent Eligibility

Rarely eligible

Usually not eligible

Eligible under SND/Open Box/Used plans

Claims Administration

Manufacturer handles

Third-party or retailer

CPS manages claims, service, and customer communication

Dealer Service Participation

Not supported

Sometimes allowed

Dealer has first right of refusal to service their own customers

Revenue Opportunities

None after sale

Margin on warranty sale

Margin on sale, service revenue, and post-sale recovery

Customer Retention Impact

Limited to initial coverage

Depends on claims experience

Structured for long-term retention and repeat visits

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

  • Established industry partner—Consumer Priority Service (CPS) has been supporting appliance retailers since 1990, bringing decades of experience to every program
  • Massive coverage scale—CPS has served over 60 million customers and covered more than 75 million products, reflecting deep operational expertise
  • Robust service and claims infrastructure—With $450M+ in claims paid annually and a network of 50,000+ servicers nationwide, CPS can support retailers of any size
  • Trusted by retailers—More than 10,000 retail partners rely on CPS for warranty programs, including independent stores and major chains
  • Nationwide and factory-authorized service—CPS offers both independent and factory-authorized repair capabilities, supporting seamless customer service
  • U.S.-based support and ongoing partnership—Retailers benefit from dedicated, U.S.-based onboarding, support, and account management
  • Broad category flexibility—CPS warranty programs cover over 60 categories, letting appliance retailers protect a wide range of products

CPS Warranty Programs FAQ

When does CPS coverage begin for appliance customers?

CPS True Extended coverage starts after the manufacturer warranty expires, while 50% Back coverage begins immediately at the time of purchase.

Can appliance retailers offer coverage on open-box, scratch-and-dent, or used inventory?

Yes, CPS offers dedicated SND and open-box plans that allow retailers to cover discounted and used appliances, expanding retention opportunities.

What happens when a customer files a CPS claim?

CPS manages claim intake, coverage verification, and service coordination, keeping the retailer involved and the customer informed throughout the process.

Does CPS let dealers service their own warranty customers?

Yes, CPS gives dealers first right of refusal to handle claims on products they sold, allowing stores to maintain the service relationship and generate repair revenue.

How does warranty coverage improve customer retention for appliance retailers?

Warranty programs keep customers engaged with the retailer for years after the sale by making the store the ongoing service and support resource.

Are claims administered by the retailer or by CPS?

CPS handles claims administration, but retailers can participate in the service process if they choose, maintaining direct customer contact.

Can CPS coverage be added after the initial appliance purchase?

Yes, CPS offers post-sale marketing programs that allow coverage to be offered to customers who declined at checkout.

How does CPS 50% Back work?

CPS 50% Back is a five-year plan that starts at purchase—if the customer never uses it, they receive a 50% refund at the end of the term.

What types of failures are covered under CPS appliance warranties?

CPS covers mechanical and electrical failures that affect appliance function, such as compressors, motors, pumps, and control boards, after the manufacturer warranty ends.

Are cosmetic issues or accidental damage covered by CPS?

No, CPS does not cover cosmetic damage, accidental impact, misuse, or environmental events; coverage focuses on functional failures from normal use.

Does CPS offer coverage for premium and smart appliances?

Yes, CPS covers a wide range of appliances, including premium and smart models, with flexible term options to fit different ownership cycles.

How do CPS warranty programs support multi-location retailers?

CPS provides centralized onboarding, reporting, and service coordination for retailers with multiple locations, supporting consistent customer experiences and program management.

What is the impact of positive claims experiences on customer retention?

CPS dealer data shows customers who have positive warranty service experiences are 15-30% more likely to return for future purchases.

How does CPS handle communication during the claims process?

CPS keeps both the customer and retailer updated at every stage of the claim, ensuring transparency and reducing confusion.

Can CPS programs be customized for different types of appliance retailers?

Yes, CPS structures programs around each retailer’s inventory, service model, and retention goals, providing flexibility for independents and large chains alike.

How can appliance retailers get started with CPS warranty programs?

Consumer Priority Service warranty programs are designed for appliance retailers who want to build long-term customer relationships, create additional profit, and stand out with ongoing service. By offering coverage options like True Extended, 50% Back, and SND, retailers can protect more customers and inventory types, all while keeping their store at the center of every service or repair event.

Retailers interested in getting started can access CPS onboarding, support, and training to integrate warranty programs into their existing sales and service processes. Whether you’re an independent shop or a multi-location operation, CPS makes it easy to launch, administer, and benefit from retention-focused warranty programs.

Contact Method

Details

Email

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, from single locations to large, multi-store networks. If you want to see how CPS warranty programs would look for your business, just reach out and the team can walk you through the options 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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