TORONTO -

It may be time for dealers in Canada to cater to younger audiences. According to the 2012 Consumer Retail Experience Study from J.D. Power and Associates, a critical step in attracting more business from young buyers is increasing advocacy among current customers.

J.D. Power contends the Canadian automotive industry needs to put aside “labels or descriptors” and start taking advantage of the Millennials (the generation currently between 18–34), as many of them are entering their prime vehicle-buying years.

J.D. Power’s J.D. Ney explained that there are mixed opinions on this generation, according to thoughts voiced at corporate retreats and conferences around the country.

"They are applauded for their inherent tech-savviness and increasing economic gravitas, while also being described as fickle and entitled," Ney said in the company’s March Analyst Note. "Regardless of labels or descriptors, the Canadian automotive industry must learn how to more effectively cater to this demographic, the leading edges of which are entering their prime vehicle buying years."

A critical step in attracting more business from these young buyers, the study says, is increasing advocacy among current customers. And doing so may require some plan changes for dealers, since what works for older generations may not have the same affect on younger buyers.

"Among recent vehicle buyers, who have also purchased at least one new vehicle in the past, previous experience with the dealer from whom they purchased plays an important role in terms of influencing the new purchase decision," Ney said.

But for Millennials, this is true only 29 percent of the time, according to the study. This rings true for older buyers 46 percent of the time, Ney reported.

On the other hand, when the various age groups are asked about the importance of recommendations from friends and family in their decision to purchase from a particular dealer, "the roles reverse."

This component was cited as less important by older buyers (19 percent), while it was the most influential component cited by Millennials, with 32 percent agreeing that recommendations had impacted their decision.

Technology could also be playing a part in this statistic, since Millennials were growing up when the Web first launched on the scene and may be more apt to look at online dealership reviews and Facebook and Google+ recommendations.

Another finding from the study that ties into technology is that Millennials share the most comments about their purchase experience.

On average, they share seven positive comments with others, versus two negative ones, according to the study.

And these comments aren’t just getting left on dealership sites or voiced in conversation with friends; Millennials comment on your store on a variety of social media sites, as well. In this sense, Millennial customers can have a direct affect on the online reputation of a dealership.

Ney also explained that Millenials may take a little more work to ensure their loyalty to a dealership.

"These advocacy imperatives come into sharp focus when considering that Millennials are the least likely demographic to definitively declare forward intended service loyalty (48 percent of new-vehicle purchasing Millennials versus 64 percent of older purchasers)," said Ney.

These stats may tie into Milllenial’s penchant for Internet use, as well.

'Given their penchant for exhaustively researching automotive purchases online, they’re also less likely to be 'delighted' with the dealership sales experience,' he added, noting these customers may take a little more work on the part of dealership staff.

Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing Canada on LinkedIn and Twitter.