Targeting strategies help brands develop a granular view of their customers so they can develop more effective products, services, and activation strategies.
The automotive industry is undergoing rapid and profound transformation. From dramatic fluctuations in electric vehicle adoption and the rise of connected, software-driven cars to evolving consumer attitudes around sustainability, ownership, and digital experiences, automotive manufacturers face a market more dynamic—and fragmented—than ever before. Now, the added pressure of potential tariffs brings more uncertainty in understanding consumer choices.
In this context, conducting segmentation research among new vehicle owners is not just beneficial, it is essential for understanding and responding to consumers’ diverse needs, attitudes, preferences, lifestyles, and mindsets.
Understand your customer to decode what they want.
Today’s vehicle buyers are far from a homogenous group. They span generations, income levels, lifestyles, and value systems. For example, Gen Z and Millennials bring tech-savvy expectations, a preference for sustainability, and openness to new mobility models. In contrast, older generations remain ‘tried and true,’ prioritizing reliability, in-person dealership experiences, and brand loyalty. Family-oriented buyers look for safety and space, performance enthusiasts crave power and handling, and urban dwellers seek compact, electrified, connected vehicles. Emotional attachment to vehicles is also rising, with many owners, especially younger ones, viewing their cars as extensions of their identity and life milestones.
Segmentation research helps decode these differences. By grouping new vehicle owners based on shared characteristics—mobility needs, behavioral patterns, lifestyle, demographics, and psychographics—manufacturers can better understand what truly drives purchase decisions.
Segmentation research helps decode these differences. By grouping new vehicle owners based on shared characteristics—mobility needs, behavioral patterns, lifestyle, demographics, and psychographics—manufacturers can better understand what truly drives purchase decisions.”
Five key benefits of segmentation research on new vehicle owners:
1. Targeted Product Development
Knowing what each segment values—be it cutting-edge technology, eco-friendliness, or family safety—enables automakers to Innovate and design vehicles and features that resonate with specific groups, reducing the risk of costly missteps in product planning.
2. Personalized Marketing
Segmentation allows for tailored communication and messaging that speaks directly to the priorities of each group. For example, digital-first campaigns for Gen Z, safety-centric or in-vehicle entertainment messaging for families, or performance-focused content for enthusiasts.
3. Optimized Customer Experience
Personalization doesn’t stop at marketing. Understanding segment-specific preferences enables companies to customize the purchase journey, whether that means offering online buying options, in-person tech demonstrations, or after-sales support that matches the owner’s lifestyle.
4. Resource Efficiency
By focusing efforts on the most promising and receptive segments, manufacturers can allocate resources more effectively, reducing acquisition costs and improving the research ROI.
5. Increased Loyalty and Retention
When customers feel understood and valued, they are more likely to become repeat buyers and brand advocates. Segmentation research supports the creation of loyalty programs, service offerings, and communications that build lasting relationships
Customer insights are key to navigating industry disruption.
The pace of change in the automotive sector is accelerating. EVs are projected to make up a significant share of new car sales by 2030, driven by regulatory mandates and shifting consumer demand. Meanwhile, the integration of artificial intelligence, advanced driver-assistance systems, and connected services is redefining what owners expect from their vehicles. These trends are not uniform—their adoption and desirability vary widely by segment, geography, and lifestyle.
Segmentation research provides the granular insights needed to anticipate which groups are most likely to embrace modern technologies, which remain loyal to traditional models, and how attitudes throughout the ownership experience are evolving. This foresight is critical for long product development cycles and for staying ahead of shifting market tides.
Adapt your strategy to meet the challenges of the current market.
Understanding the nuanced needs, preferences, and mindsets of today’s auto buyers is more than a marketing advantage—it’s a strategic imperative. As the industry continues to evolve, segmentation research offers a reliable way to stay aligned with shifting consumer expectations and make more informed decisions across product, marketing, and customer experience. The market will continue to shift. Brands that stay close to their customers will be better equipped to navigate what’s next.
Want deeper insight into your customers and what will motivate them?
