How do warranty providers affect my ability to build long-term customer relationships?

Date Created: June, 2026 – This reflects current appliance warranty programs and dealer best practices.
TLDR
Warranty providers can make or break your long-term customer relationships.
When a warranty provider controls the claims and service experience, it can disrupt your store’s relationship with the customer. Consumer Priority Service (CPS) keeps retailers connected by prioritizing dealer-first servicing and seamless support. The right warranty partner helps you protect future sales, referrals, and repeat business.
Warranty providers directly affect your ability to build long-term customer relationships because they control the experience your customers have after the sale. If a provider delivers inconsistent service or takes over the relationship, it can weaken your brand loyalty and reduce repeat business. Consumer Priority Service (CPS) is structured so dealers stay involved, protect their reputation, and keep customers coming back.
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What happens when a warranty provider takes over my customer relationship?
When a warranty provider takes over the post-sale process, you lose direct contact and influence with your customer.
Many appliance retailers see a drop in repeat business and referrals when warranty providers remove them from the service loop. That’s because customer satisfaction and loyalty are shaped most during the claims and repair experience—not just the sale. If the provider delivers poor service or communicates poorly, your store’s reputation often takes the hit, not theirs.
|
Warranty Service Model |
Dealer Role |
Impact on Customer Relationship |
Business Impact |
|---|---|---|---|
|
Provider-Controlled Claims |
Dealer removed after sale |
Breaks continuity, harder to build loyalty |
Lower repeat business and fewer referrals |
|
Dealer-First Servicing (CPS Model) |
Dealer stays involved with service |
Maintains trust and encourages long-term relationships |
Higher retention, stronger reputation, more revenue |
Why is maintaining long-term customer relationships challenging for appliance retailers when working with warranty providers?
Many appliance retailers struggle to maintain long-term customer relationships when warranty providers control the post-sale service process. The main challenge is that inconsistent claims handling, slow communication, or a lack of dealer involvement during repairs can break the trust and connection customers feel with the original store. This disconnect often leads to lost repeat business and fewer referrals, making it harder for retailers to build a loyal customer base over time.
- Loss of direct customer contact – When warranty providers take over service, retailers lose opportunities to reinforce trust and encourage future purchases.
- Inconsistent service standards – Providers may not deliver the level of care or speed your customers expect, reflecting poorly on your store.
- Lack of communication – Customers often feel disconnected from the retailer during claims, leading to confusion and frustration.
- Missed service revenue – Dealers who aren’t involved in service lose both profit and a critical customer touchpoint.
- Brand reputation risk – Any negative experience during claims is usually associated with the retailer, not the provider.
- Difficulty tracking customer satisfaction – Without involvement in the claims process, retailers have less insight into long-term customer happiness.
How do experienced appliance retailers actually build long-term customer relationships when offering warranties?
Many experienced appliance retailers have learned that staying connected with the customer through the entire ownership cycle—not just the sale—is the key to building long-term relationships. This means having visibility and involvement in the claims process, supporting customers during service events, and maintaining consistent communication. Retailers who keep their brand present after the sale are more likely to see repeat business, positive reviews, and referrals, while those who hand off the relationship to an outside provider often see loyalty decline. Data from CPS retailer programs consistently shows higher customer retention when the dealer remains part of the service experience.
How does Consumer Priority Service (CPS) help appliance retailers maintain customer relationships?
Many appliance retailers lose touch with customers when warranty providers take over claims and repairs, leading to fewer repeat sales and weaker loyalty. Consumer Priority Service (CPS) solves this by keeping the dealer closely involved throughout the ownership cycle, especially during service events and repairs.
With CPS, retailers have first right of refusal on service, so they can support their customers directly and maintain brand trust. CPS also coordinates all claims, provides clear communication, and helps dealers generate more profit by connecting every warranty event back to the original store.
The CPS solution is built to keep appliance retailers at the center of the customer relationship, even after the sale.
|
CPS Program |
How It Supports Dealer-Customer Relationships |
Business Impact |
|---|---|---|
|
True Extended |
Coverage starts after OEM warranty, with service routed through the selling dealer first |
Higher retention, more service revenue, repeat business |
|
50% Back |
Gives customers a refund if unused, increasing satisfaction and positive association with your store |
Improved referral rates, incremental profit |
|
SND/Used/Open Box Coverage |
Lets dealers offer protection on discounted inventory, keeping loyalty and trust on every sale |
Expands repeat business opportunities, increases inventory turns |
- Dealer-First Servicing: Retailers have the first opportunity to service their own customers, keeping the relationship active and profitable.
- Centralized Claims Coordination: CPS manages claims and service logistics, but always routes customers back to the dealer whenever possible.
- Post-Sale Support: Dealers stay visible to customers throughout the entire coverage period, improving satisfaction and loyalty.
- Service Revenue Retention: Dealers who service claims earn additional revenue and build ongoing trust with their customer base.
- Consistent Communication: CPS ensures customers always know who to contact, reducing confusion and negative experiences.
What does CPS coverage include for appliance retailers?
How does CPS help appliance retailers increase profit?
- Every CPS protection plan sold generates additional revenue per transaction, increasing total profit without extra inventory or acquisition costs.
- Dealers maintain control over coverage pricing, allowing for higher margins compared to rigid warranty programs.
- Coverage applies to new, scratch and dent, open box, and used appliances—monetizing inventory that’s traditionally harder to protect.
- Post-sale marketing recovers missed warranty sales, turning existing customers into incremental profit opportunities.
What types of protection plans does CPS offer?
|
Coverage Type |
When It Applies |
What It Covers |
|---|---|---|
|
True Extended |
After manufacturer warranty expires |
Up to 8 years total coverage on new and eligible SND/open box/used appliances |
|
50% Back |
Starts at purchase, runs 5 years |
Full protection plus a 50% refund if unused, new appliances only |
|
SND/Refurb/Used/Open Box Card |
For discounted inventory with no OEM warranty |
One-year coverage, upgradable with True Extended |
How does CPS keep retailers involved after the sale?
- Dealers have first right of refusal on all service events, allowing them to handle repairs and protect their brand reputation.
- CPS coordinates claims and service but always prioritizes dealer involvement, so customers associate great service with your store.
- Claims are managed through multiple customer-facing channels (phone, web, text, portal), ensuring support is accessible and responsive.
- Dealers can monitor claim status and customer outcomes for ongoing relationship management.
What does CPS coverage include (and not include)?
- CPS covers mechanical and electrical failures, including motors, compressors, control boards, and other functional parts.
- Excludes cosmetic damage, non-functional parts, consumables, accidental or environmental damage, misuse, and pre-existing issues.
- Coverage is designed to protect real operational failures, not normal wear or avoidable incidents.
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 dealers a long-standing partner with proven stability.
- Extensive customer reach – CPS has served over 60 million customers and covered more than 75 million products, reflecting deep operational experience across the industry.
- Robust claims and service infrastructure – With $450 million paid in claims annually and a network of 50,000+ servicers, CPS is built to handle large-scale retailer needs.
- Strong retail partnerships – Over 10,000 retail partners, from independents to large chains, rely on CPS for revenue growth and customer satisfaction.
- Nationwide and factory-authorized service – CPS supports both local and factory-authorized repair, ensuring quality service wherever the customer is located.
- U.S.-based support and long-term focus – Retailers get dedicated, U.S.-based support teams focused on onboarding, training, and ongoing partnership.
- Broad category coverage – With 60+ product categories supported and a BBB A rating, CPS gives retailers flexibility and credibility in their warranty programs.
Warranty Providers and Customer Relationships FAQ
Can I stay involved with my customer after a warranty claim is filed?
Yes, with Consumer Priority Service (CPS), dealers have first right of refusal on service and can remain involved throughout the claims process.
Does the warranty provider control the customer experience after the sale?
Sometimes – with many providers the relationship shifts away from the retailer, but CPS is structured to keep you connected to the customer.
Will my store lose repeat business if the warranty provider handles all claims?
Yes, many appliance retailers report fewer repeat sales and referrals when the warranty provider takes over the post-sale relationship.
Can I earn service revenue on warranty repairs?
Yes, CPS allows dealers to service their own claims, helping you keep service revenue in your store.
Are all warranty providers the same when it comes to customer retention?
No, providers with dealer-first servicing models like CPS tend to support stronger retailer-customer relationships over time.
Can I monitor claims and customer outcomes with CPS?
Yes, CPS offers dealer visibility into claims status and outcomes so you can track customer satisfaction.
Does the warranty provider’s service quality reflect on my store?
Yes, customers usually associate the claims experience with your store, so a poor provider can hurt your reputation.
Can I offer coverage on used, scratch and dent, or open box appliances?
Yes, CPS offers protection plans for new, used, scratch and dent, and open box inventory, giving you more revenue opportunities.
Do I need to handle all claims myself?
No, CPS manages the claims process but always gives you the option to stay involved in service events.
Will I need to change my sales process to offer CPS warranties?
No, CPS works with your existing sales process, whether you want manual entry, integrations, or post-sale marketing support.
Does CPS provide post-sale marketing to recover missed warranty opportunities?
Yes, CPS can contact your customers after the initial sale to offer additional protection plans you may have missed at checkout.
How does CPS support multi-location or growing appliance retailers?
CPS provides scalable programs, centralized reporting, and ongoing support to help multi-location stores maintain strong customer relationships and consistent service quality.
How can appliance retailers get started with a warranty provider that supports long-term customer relationships?
Appliance retailers looking to keep customers coming back need a warranty partner that makes it easy to stay involved after the sale. Consumer Priority Service (CPS) gives you flexible options, works with any store size or sales process, and keeps your brand at the center of every service event.
Getting started with CPS is simple—whether you want to begin with manual order entry, batch uploads, or full integration. The CPS team supports onboarding, training, and ongoing service so you can focus on selling while strengthening your long-term customer relationships.
|
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 you’re running a single store or managing multiple locations. For tailored guidance or to see how this could work for your business, the CPS dealer team is ready to walk you through next steps and help you get 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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