WESTLAKE VILLAGE, Calif. -

While showing which specific brand retained customers the best, the J.D. Power and Associates 2012 Customer Retention Study revealed one in three new-vehicle owners who switched brands say their previous nameplate didn’t make the type of vehicle they wanted.

As a result, J.D. Power found that striking the right combination of model offerings and vehicle appeal is critical to retaining customers.

Among new-vehicle owners who switched vehicle brands for their latest purchase, analysts found 33 percent indicate that their previous brand didn’t offer the type of vehicle they desired.

Although this is a primary reason for switching, J.D. Power mentioned other key reasons relate to dissatisfaction with the previous vehicle, including the model costs too much to own or maintain; there are too many problems with the unit; and the vehicle didn’t retain sufficient resale value.

“Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn’t enough in and of itself,” explained Raffi Festekjian, J.D. Power’s director of automotive product research at J.D. Power.

“Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brand,” Festekjian continued.

“Manufacturers also need to ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles,” he added.

According to Festekjian, brands that strike the right combination of all of these aspects stand the best chance of being reconsidered by current vehicle owners for their next new-vehicle purchase.

So which brand fared the best?

J.D. Power’s study showed Hyundai ranked highest among brands in retaining customers when they buy a new vehicle.

Hyundai improved its retention rate by 4 percentage points from 2010 to 64 percent in 2012, a rise analysts believe was primarily driven by the Elantra and Sonata models.

“Hyundai’s increased retention rate is shaped by its expanding model lineup, as well as the fact that perceptions of the brand’s quality and appeal have continued to improve during the past decade,” Festekjian surmised.

Following Hyundai in the rankings were Ford and Honda, in a tie, each with a customer retention rate of 60 percent.

Jeep posted the greatest improvement in customer retention rate from 2010, improving by 17 percentage points to 51 percent in 2012.

J.D. Power noted overall customer retention improved by 1 percentage point in 2012 to 49 percent, compared with 48 percent in 2010.

In 2012, analysts indicated 19 of the 33 ranked brands have improved their customer retention rates from 2010, while 14 have declined.

The study also revealed that women and younger vehicle owners (those in the Generation Y and Generation X demographics, between ages 23 and 47) are less likely to choose the same vehicle brand for their next purchase, compared with men and older owners.

“Women and younger vehicle owners are more likely to experience changes in their life circumstances, including growth in household size or changes in income levels, that would lead them to purchase vehicles that better accommodate their new lifestyle,” Festekjian explained.

J.D. Power went on to relay that brands that performed particularly well in retaining women customers include Honda, Hyundai, Kia and Mercedes-Benz.

Among vehicle owners in the Generation Y and Generation X demographics, analysts said Ford, Kia, Lexus and Mercedes-Benz perform particularly well in customer retention.

Now in its ninth year, J.D. Power reiterated this study measures the rate at which brands retain their existing customers and examines the reasons why customers remain loyal.

“Customer retention is critical to a brand’s market success, particularly during the current period of market recovery, in which each new-vehicle sale is vital,” analysts pointed out.

“In addition to customer retention, the study also measures the rate at which each automotive brand captures customers from its competitors, known as conquesting,” they added.

The 2012 Customer Retention Study was based on responses from 117,001 new-vehicle buyers and lessees, of which 73,733 replaced a vehicle that was previously acquired new. The study was fielded between February and May, as well as August and September of last year.