The last two years have been dramatic: we've moved from Old Economy to New Economy, from a B2C buzz to B2B hype, from 'Clicks vs. Bricks' to 'Clicks and Mortar'. For an innocent onlooker, the sheer force of change that is causing stock markets to fluctuate wildly, is unsettling and overwhelming. No one has been left unaffected. However, it is time to sift through the rubble of the revolution and figure out what is driving the New Economy.

The Internet has profoundly altered the relationship between consumers and producers. While the Internet may never entirely replace off-line retailing, consumers have a new voice. They want convenience, speed, comparative information, better prices, and service - all delivered to their doorstep with a minimum of effort. Companies that want to win must deeply believe that the Internet is going to change the way business is conducted and that there is plenty to gain from starting early, learning fast, and adapting to change. The key to success is learning how to combine the power of computers, the Web and communication technologies to provide a valuable end-user experience.

Customer expectations will control the shape of things to come ...

Stop Pushing
The Net is not just another medium for advertisers to rave about the advantages of their client's products or a channel for companies to market their services. The Net is about intense experiences where customers have the freedom to choose and control the content that they view. The Net provides a unique space for individuals to escape into worlds of their own creation without being invaded by mindless advertising and banal messages.

When Web users want information, they want it on their terms. They demand choices and control and the ability to decide what to click, what to view, and what to ignore. Online consumers react violently to intrusion and, as a result, the art of persuasion has undergone radical changes.

Not too long ago, online advertising embodied the concept of "push" - placing an advertisement on your computer screen whether you liked it or not. Creating "eyeballs" was another touted methodology where ads were placed in prime locations for hundreds and thousands of dollars. Online consumers simply will not allow anything to be shoved down their throats. The challenge for advertisers and marketeers today is to entertain and educate online audiences. The online space is an entirely different paradigm and consumer expectations vary widely. Keeping in step with those expectations is critical for success.

The Truth Is Out There - Cut the Hype
Online consumers, over time, have become keenly sensitized to hype. Netizens are aware, thinking, conscious individuals with their eyes wide open. On the Web, there are hundreds of ways to find unbiased information about products and services. Offline, comparisons are often logistically impossible and involve high costs. In the online world, it takes a few mouse clicks to compare products and services, in terms of features, availability, and price. I got a great deal on my Macintosh PowerBook by using PriceScan.com, a site that allows users to enter their product requirements and price range. It saved me the hassle of going to hundreds of web sites, individually, by listing all the stores that carried the product, categorized by price.

Amazon.com pioneered the concept of neutrality by listing unfavorable book reviews on their site, placing the needs of the customer first, even at the risk of losing a sale. I have been saved the trauma of purchasing a terrible book, many a time, by reading Amazon reviews as well as reader reviews that tell the truth, or at least, provide an honest opinion.

Online consumers demand independent opinions and vendor-specific information. They want the truth and they want it immediately so that they can make decisions accordingly. Awareness levels have reached an all-time high and companies that believe their customers are gullible will just not make it.

I Want It My Way
The Internet and the New Economy have forever changed the way business is conducted. Until recently, for a predominantly offline world, products and services were designed without really taking the needs of the consumer into consideration. The Internet allows vendors and service providers to configure their offerings based on consumer demands, keeping inventory levels to a minimum. A host of computer companies, for example, allow online shoppers to 'build' their own computers and have them delivered direct to their doorstep.

Asian Paints in India has recently re-launched their website, allowing consumers to try out shades and shade combinations on pictures of their own homes. Realizing the potential of the Net in delivering value, the company offers advice, cost and volume calculators, product selectors and dealer locator services on their site. According to the eBusiness Manager at Asian Paints, the Internet is a platform to offer and deliver customized solutions.

Bid For It
In 1996, Pierre Omidyar said to a partner at Benchmark Capital, "I've got this e-commerce site called eBay. It's gathering steam." eBay went public in 1998 with a market value of $1.88 billion, topping the $1.02 billion value of Sothebys, and has been solidly profitable since it was launched. More significantly, eBay has radically transformed the manner in which goods are bought and sold. Online consumers can find the best deals on every kind of product as well as sell just about anything to a potential audience of millions.

The New Economy will bring tremendous benefits to producers as they will have the ability to track and calculate whether to add capacity and alter costs based on buying patterns. However, in keeping with the spirit of the Internet, the biggest winner is the consumer. From hotel rooms to airline tickets, the consumer will let vendors fight for his business and offer the best value for money. Sites like eBay focus on building communities and get consumers in touch with one another. Now you can find that 60s Beatles poster or that signed first-edition of a Stephen King book you've always wanted.

The Power of Digital Search
The ability to search for information, products, and services is one of the best parts of the online experience. I now go through life yearning for an offline equivalent of the "Search Box". Companies that provide solid, robust search engines will go a long way towards garnering consumer loyalty. Online customers expect to find what they are looking for in the shortest possible time, preferably in seconds. Surfers do not have the patience or time to wade through pages and pages of product information on a poorly designed website to get to what they really need. Amazon.com provides one of the finest search facilities in cyberspace and works round the clock to enhance functionality based on consumer feedback.

In traditional bricks and mortar stores, customers have to waste precious hours trying to locate their favorite brand of rice, fighting for space in crowded aisles, and standing in long check-out lines. Online, distributors can make their products available and accessible instantly, in addition to providing other value-added services that traditional stores cannot match.

Right Here, Right Now
24 hours a day, 7 days a week, 365 days a year, is what the average online consumer expects. While traditional supply chains have been optimized over the last few years, not much attention has been paid to the delivery chain. Customers have to come to stores and wait, if necessary, to get what they want. Online, however, consumer demands have reached dizzying levels. They want everything right away, delivered to their desktops or their doors. In fact, they are even willing to pay a little extra for the sheer convenience of home deliveries.

Traditional stores close at the end of the trading day. Online stores are always open and no one ever goes to sleep. So, whether a customer wants pizza, the latest Schwarznegger Video, or an urgent delivery of a life-saving drug, he has plenty of choices, even if it's the middle of the night.

Consumer2Consumer Connections
On the Web, every consumer is ready and willing to share positive and negative opinions and experiences. Word of mouth has advantages and disadvantages, but the positive effects of consumers talking to one another about a product, is undeniable. The tolerance level for hype is very low on the Net and unbiased opinions from users of products and services are a great marketing tool. Online communities provide the forum for discussions and customers have the facility to ask questions of people who have no vested interest in any specific product or service. Companies that allows consumers to connect will gain a great deal of credibility and will build long-term brand loyalty.

So, what does all this mean for businesses?
It means that to succeed in a customer-led world, companies have to offer value, above and beyond their core products and services, both offline and online. Businesses must develop hybrid models that allow customers to combine the best of both worlds. Innovation, information, high levels of customer service, and the ability to adapt to change at blindingly fast speeds, will be the key factors for success in the New Economy.