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Customer Experience
Management
1
By: Mohammad Ghazizadeh
Steve Jobs: “You've got to
start with the customer
experience and work
back to the technology
not the other way
around.”
2
Remember
Brand
Identity?
Customer experience Vs. Brand
Remember
Brand Image?
Customer experience Vs. Brand
The brand experience is what we as
marketers, brand managers and
brand identity consultants design in
an effort to achieve the desired
brand image.
Customer experience Vs. Brand
Brand
Image
Customer experience Vs. Brand
Customer Experience
Management
Brand
Identity
Brand sets customer
expectations for experience.
Customer Experience is how
well you deliver on those
expectations.
Customer Experience Vs. Brand
So;
You Have a Customer
Experience (but you may not
know it)
Random
Experience
• Inconsistent
• Unintentional
Predictable
Experience
• Consistent
• Intentional
• Not differentiated
• Not Valuable
Branded
Customer
Experience
• Consistent
• Intentional
• Differentiated
• Valuable
• Emotional Relationship
Customers are not buying just a
product or service from a
company; they are buying the
total experience around its
consideration, purchase use and
service
Researches shows that
25 percent of customers
will defect after just one
bad experience.
10
McKinsey & Company
Good
Customer
Experience
Generate
Revenue
The quality of
experience can
even help
justify premium
pricing
13
Focusing on CEM as a strategy helps
service delivery capabilities align and
adapt to behavioral shifts of the
target audience. Benefits realized go
well beyond improvements in
customer satisfaction and Churn.
Loyal customers buy more and share
experiences with friends and family.
They also help generate incremental
Sales through recommendations on
social and professional networks
a) “Customer Experience is defined as the “sum of all
experiences a customer has with a company, over
the duration of their relationship. From awareness,
discovery, attraction, interaction, purchase, use,
through to cultivation and advocacy.” (SEBASTIAN
BARROS)
b) “How customers perceive their interactions with a
company” (Forrester)
c) “The sum of observations, perceptions, thoughts
and feelings arising from interactions and
relationships between customers and their service
providers” (Infosys)
CX Definition
“Managing everything related to
how the Customer Experiences the
company.”
15
Customer Experience
Management (CEM) Definition
“Holistic approach taken to monitor,
measure and improve all aspects of
customer interactions between the
operator and the customer.”
The Strategic objectives of
CEM programs are:
• Increased NPS at all
touchpoints
• Leading to increased customer
loyalty throughout their
lifecycle
• Greater ROI
• Increased CLV
16
So when we talk about ‘designing’
customer experience, we refer to
designing a framework that enables
organizations to do this.
This framework details the touch-
points where you need to
differentiate and the ways in which
your products, processes and
behaviors must be distinctive to
deliver value to your target
customers.
17
Designing Customer Experience
18
What Are
Touch Points?
Touch Points Definition
“A customer touchpoint is any
moment when a customer comes into
contact with our brand. This includes
before, during, and after the
purchase.”
Who “owns” the touchpoints?
From the customer's point of view, it's the company
as a whole, not a single department.
20
Identify
customer
touchpoints
The best way to find these touchpoints is by thinking like a customer
who has never experienced our brand before and is going through
the entire process of doing business with us.
Common touchpoints include:
A. Before the transaction:
This could be one of our marketing
efforts like ads, online testimonials or
social media activity; customers can
also form an impression through
product reviews on e-commerce sites
or through word of mouth. So make
sure to listen up by paying attention to
social media channels.
24
Generational Groups Communicate Differently
B. During the
transaction:
our point of sale
environment could be a
physical store, a website
or catalog; here,
customers might interact
with your staff, sales team
or call center.
C. After the transaction:
This involves billing,
product support,
questions and returns;
also, you might
send customer feedback
surveys, product
newsletters or thank you
cards.
A recent customer survey
conducted by NICE found that
customers are using on average
5.8 channels to communicate
with their service providers.
Whether it is email, IVR, phone or
via social media, customers are
communicating through a
number of channels in an
increasingly unpredictable way.
29
Touch Points
30
Touch Point Examples
31
Touch Point Examples
Remember!
Feedback is a touchpoint
How, and when you ask customers for feedback – and respond to it
– are important touch-points.
32
“Instance of contact or interaction between a customer and a
firm (through a product, sales force, or visit) that gives the
customer an opportunity to form (or change) an impression
about the firm.”
You could have great products, a
nice website, speedy delivery
and a dedicated customer
service team, but any weak link
(in what turns out to be a very
long chain) could send potential
customers elsewhere.
Customer Journey Definition
“The customer journey involves
every interaction with your
company, product, or service.
When a customer buys your
product or service, that
transaction is merely the tip of
the iceberg in what is
essentially a journey created by
all the moments leading up to
and following the purchase. “
customer journey map
“An illustration that details all of the
touchpoints at your organization
that a customer comes into contact
with as he/she attempt to achieve a
goal, and the emotions they
experience during that journey.”
The process of building the map is not so simple. The mapping
process demands rigorous research and a meticulous understanding
of the customer. If the map is to be truly reflective of what the
customer experiences at a human level, corners cannot be cut.
Mapping
Process
No two maps will be exactly
the same, with the design
varying according to the
business, product, service and
customer being mapped
out.
Process of
Building the
Map
1. Make sure you have done
your research
The data that will be used to inform that
map should not be based best customers
on guesswork. Organizations should firstly
identify their (or the customers that they
would like to attract), and make sure they
thoroughly understand them, building a
buyer persona for these customers, and
any other customer group that is
important to the business.
2. Define behavioral stages from
the customer’s perspective
Having done your research, you should have a
pretty clear idea of the processes that each of
your personas go through on their path to
purchase and beyond. When it comes to
building a map, it is important that it is
organized by stages that reflect the major goals
your customer is trying to achieve, rather than
organizing it by stages that reflect your own
internal processes. Think about what your
customer is trying to achieve at every step, and
use the data you have from your customer
interviews to inform this.
Compass Model
North: needs, or what the customer desires from
the experience. Some needs are stated, but it is
important to understand that many are not. I need
to transfer to an aircraft to begin an air-travel
journey might be one need.
West: wants—the underlying objective or
purpose of travelers, stated, unstated, or perhaps
not even fully recognized by them; for example, I
want a really positive end to my business trip that
leaves me feeling good, relaxed, and in a positive
mind-set to go home.
Compass Model
South: stereotypes, or preconceived notions,
positive or negative, that customers have about the
airport experience. A customer might expect
this: Curbside will be a hassle. TSA lines will be long
and hard to predict. There will be no time to eat.
And the airline may lose my bag, so best to carry it
onboard.
East: emotions that customers have or are likely
to experience; for example, I feel rushed and
annoyed that this is so hard to deal with. I’m
anxious about getting to the gate and missing my
flight. I really need this trip to be behind
3. Capture your customer’s
considerations
As well as capturing the major goals, which
characterise the stages of the map, the journey map
should also try to detail more specific goals and
considerations that the customer might have along
the way.
For instance, these might include: wanting to find out
what the different options are; ensuring that he/she is
paying a fair price; or seeking reassurance that
he/she has all the information readily available about
the flight. By capturing these goals/considerations in
each stage of the journey, you are able to examine
how well you are meeting those goals and answering
any questions.
4. Detail every touchpoint
At each of the stages that has
been mapped out, consider
where the touchpoints occur.
5. Detail customer pain
points
After you have registered all the touchpoints,
you will now be able to mark out your
known pain points on the journey map.
Having conducted your interviews with
customer-facing staff and teams that work
on touchpoints, you will know where these
pain points are. This will come in useful for
later, when you are looking for actions to
take following the mapping process.
6. Chart changing customer
emotions
Now you have detailed the pain
points (and the successes), you can
also reflect your customer emotions.
While some of this might be dictated
by the quality of your service, some
other emotions may be a result of the
scenario the customer finds
him/herself in and the goals he/she
wishes to achieve.
7. Consider what other
detail can be added to the
map
The more comprehensive the map is,
the more likely it is to accurately
represent the customer’s journey,
and the higher the probability that
you will be able to identify areas for
improvement. Therefore, any
additional details that could provide
insight into the journey should be
taken into consideration for
inclusion.
8. Outline opportunities for
improvements
Remember, the map is a means to
an end, not the end itself. If the map
doesn’t result in actions being taken,
then it has been a waste of time.
Therefore, it is important that as the
map is being filled out, and pain
points and opportunities for
improvement are being identified,
that these are charted.
best-in-class
companies
optimize customer
journey, not just
touch points
The Customer Lifecycle
PURCHASE RECOMMEND
MAINTAIN
RESEARCH NEED RECEIVE USE
1
2
3
4
5
6
7
8
SELECT BUY OWN
Support & ServeMarket & Sell
Customer-experience leaders start with a
differentiating purpose and focus on improving
the most important customer journey first.
Six actions are critical to
managing customer-experience:
A. Step back and identify the nature of the journeys
customers take—from the customer’s point of view.
B. Understand how customers navigate across the
touchpoints as they move through the journey.
C. Anticipate the customer’s needs, expectations, and
desires during each part of the journey.
D. Build an understanding of what is working and what
is not.
E. Set priorities for the most important gaps and
opportunities to improve the journey.
F. Come to grips with fixing root-cause issues and
redesigning the journeys for a better end-toend
experience.
Use customer
journeys to empower
the front line
Every leading customer-experience company has motivated
employees who embody the customer and brand promise in their
interactions with consumers and are empowered to do the right
thing.
Four simple rules for
building a sense of
engagement on the front
line:
Listen to
employees and
establish
mechanisms to
address their
issues and needs.
1.
“Best practice is to think of employees’
journeys in the same way as customer
journeys and to create a parallel path for
collecting, analyzing, and acting on their
feed-back.”
2.
Hire for attitude, not
aptitude—in other words, if
you want to provide friendly
service, hire friendly people.
Interviewing prospective
employees in groups, as
Airways does, is one way to
observe how they interact.
Reinforcing new behaviors
through formal mechanisms.
Financial incentives can help,
but nonfinancial recognition
schemes are more powerful.
Consider the recognition
cards that senior leaders
sign and hand out to
employees
Give your people a
purpose, not rules,
so that the company
sets clear
expectations and lets
employees know that
it trusts them to do
their jobs.
3.
The main hurdle in
customer
experience is
translating
boardroom vision
into action at the
front line.
4.Tap into the creativity of
your front- line employees by
giving them the autonomy to
do whatever they can to
improve the customer
experience and fix problems
themselves.
Transformation!
Five Elements
are typical of
CX
transformation
CX
Metrics
Customer experience metrics
Customer experience metrics must measure
and report on three phases of the customer
lifecycle:
join – the process of ordering a service
on-board – the process of activating and
training the customer to use the service
support – the process of resolving problems
in the delivery of services including accurate
billing.
Customer Experience Metrics
Customer experience measurement
can be divided into two broad
Approaches:
1-Outside-in: NPS and customer
satisfaction surveys measure and
report customers‟ perception of
products and services. Such KPIs
are indicators of propensity to
churn and the influences customers
have on others to join or leave.
2-Inside-out: Examples include order-to-
provision, first contact resolution, long-tail
re-callers (for example, more than three
calls) and churn-rate metrics.
Customers form perceptions when they
interact with employees, IT systems and
services at different lifecycle phases,
including:
• commitment phase
• order-to-fulfilment process
• self-service and multi-channel customer
interaction
• accuracy of bill
• quality of service
• availability of service.
77
Customer satisfaction metrics answer questions such as the
following.
• Do customers get the product or service that they wanted at the time
they requested?
• Was the product or service easy to use?
• Was the product or service reliable?
• Was the customer charged the price that the salesperson pitched?
• Can customers get the support they need quickly and efficiently?
78
Customer experience metrics
Best Customer Experience in 2016:
Online Shoe Retailer Supermarket Chain Financial Services Online Retailer
coffeehouse chain
Fashion Retailer Tech and CE Hotel ChainAirlines
Entertainment complex fast food restaurant chain Fashion Brand
Understand
& Empathize
Educate
&
Align
Identify
&
Innovate
Test & Pilot
Validate
&
Scale
CUSTOMER CENTRIC TRANSFORMATION & INNOVATION
Process to drive cultural and execution orientated change
81
“The road to failed customer-
experience programs is paved
with good intentions.”
-Harald Fanderl-
Partner at McKinsey & Company, Global leader
customer experience service line.
The Digital
Experience82
83
Customer
Experience
Ecosystem
84
85
Digital
Experience
86
87
88
89
90
91
92
93
94
95
96
Technology
Ecosystem
97

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Customer Experience Management Essentials by Mohammad Ghazizadeh

  • 2. Steve Jobs: “You've got to start with the customer experience and work back to the technology not the other way around.” 2
  • 5. The brand experience is what we as marketers, brand managers and brand identity consultants design in an effort to achieve the desired brand image. Customer experience Vs. Brand
  • 6. Brand Image Customer experience Vs. Brand Customer Experience Management Brand Identity
  • 7. Brand sets customer expectations for experience. Customer Experience is how well you deliver on those expectations. Customer Experience Vs. Brand So;
  • 8. You Have a Customer Experience (but you may not know it)
  • 9. Random Experience • Inconsistent • Unintentional Predictable Experience • Consistent • Intentional • Not differentiated • Not Valuable Branded Customer Experience • Consistent • Intentional • Differentiated • Valuable • Emotional Relationship Customers are not buying just a product or service from a company; they are buying the total experience around its consideration, purchase use and service
  • 10. Researches shows that 25 percent of customers will defect after just one bad experience. 10 McKinsey & Company
  • 12. The quality of experience can even help justify premium pricing
  • 13. 13 Focusing on CEM as a strategy helps service delivery capabilities align and adapt to behavioral shifts of the target audience. Benefits realized go well beyond improvements in customer satisfaction and Churn. Loyal customers buy more and share experiences with friends and family. They also help generate incremental Sales through recommendations on social and professional networks
  • 14. a) “Customer Experience is defined as the “sum of all experiences a customer has with a company, over the duration of their relationship. From awareness, discovery, attraction, interaction, purchase, use, through to cultivation and advocacy.” (SEBASTIAN BARROS) b) “How customers perceive their interactions with a company” (Forrester) c) “The sum of observations, perceptions, thoughts and feelings arising from interactions and relationships between customers and their service providers” (Infosys) CX Definition
  • 15. “Managing everything related to how the Customer Experiences the company.” 15 Customer Experience Management (CEM) Definition “Holistic approach taken to monitor, measure and improve all aspects of customer interactions between the operator and the customer.”
  • 16. The Strategic objectives of CEM programs are: • Increased NPS at all touchpoints • Leading to increased customer loyalty throughout their lifecycle • Greater ROI • Increased CLV 16
  • 17. So when we talk about ‘designing’ customer experience, we refer to designing a framework that enables organizations to do this. This framework details the touch- points where you need to differentiate and the ways in which your products, processes and behaviors must be distinctive to deliver value to your target customers. 17 Designing Customer Experience
  • 19. Touch Points Definition “A customer touchpoint is any moment when a customer comes into contact with our brand. This includes before, during, and after the purchase.”
  • 20. Who “owns” the touchpoints? From the customer's point of view, it's the company as a whole, not a single department. 20
  • 22. The best way to find these touchpoints is by thinking like a customer who has never experienced our brand before and is going through the entire process of doing business with us.
  • 23. Common touchpoints include: A. Before the transaction: This could be one of our marketing efforts like ads, online testimonials or social media activity; customers can also form an impression through product reviews on e-commerce sites or through word of mouth. So make sure to listen up by paying attention to social media channels.
  • 25. B. During the transaction: our point of sale environment could be a physical store, a website or catalog; here, customers might interact with your staff, sales team or call center.
  • 26. C. After the transaction: This involves billing, product support, questions and returns; also, you might send customer feedback surveys, product newsletters or thank you cards.
  • 27. A recent customer survey conducted by NICE found that customers are using on average 5.8 channels to communicate with their service providers. Whether it is email, IVR, phone or via social media, customers are communicating through a number of channels in an increasingly unpredictable way.
  • 28.
  • 32. Remember! Feedback is a touchpoint How, and when you ask customers for feedback – and respond to it – are important touch-points. 32
  • 33. “Instance of contact or interaction between a customer and a firm (through a product, sales force, or visit) that gives the customer an opportunity to form (or change) an impression about the firm.”
  • 34. You could have great products, a nice website, speedy delivery and a dedicated customer service team, but any weak link (in what turns out to be a very long chain) could send potential customers elsewhere.
  • 35. Customer Journey Definition “The customer journey involves every interaction with your company, product, or service. When a customer buys your product or service, that transaction is merely the tip of the iceberg in what is essentially a journey created by all the moments leading up to and following the purchase. “
  • 36. customer journey map “An illustration that details all of the touchpoints at your organization that a customer comes into contact with as he/she attempt to achieve a goal, and the emotions they experience during that journey.”
  • 37. The process of building the map is not so simple. The mapping process demands rigorous research and a meticulous understanding of the customer. If the map is to be truly reflective of what the customer experiences at a human level, corners cannot be cut. Mapping Process
  • 38. No two maps will be exactly the same, with the design varying according to the business, product, service and customer being mapped out.
  • 40. 1. Make sure you have done your research The data that will be used to inform that map should not be based best customers on guesswork. Organizations should firstly identify their (or the customers that they would like to attract), and make sure they thoroughly understand them, building a buyer persona for these customers, and any other customer group that is important to the business.
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  • 43. 2. Define behavioral stages from the customer’s perspective Having done your research, you should have a pretty clear idea of the processes that each of your personas go through on their path to purchase and beyond. When it comes to building a map, it is important that it is organized by stages that reflect the major goals your customer is trying to achieve, rather than organizing it by stages that reflect your own internal processes. Think about what your customer is trying to achieve at every step, and use the data you have from your customer interviews to inform this.
  • 44. Compass Model North: needs, or what the customer desires from the experience. Some needs are stated, but it is important to understand that many are not. I need to transfer to an aircraft to begin an air-travel journey might be one need. West: wants—the underlying objective or purpose of travelers, stated, unstated, or perhaps not even fully recognized by them; for example, I want a really positive end to my business trip that leaves me feeling good, relaxed, and in a positive mind-set to go home.
  • 45. Compass Model South: stereotypes, or preconceived notions, positive or negative, that customers have about the airport experience. A customer might expect this: Curbside will be a hassle. TSA lines will be long and hard to predict. There will be no time to eat. And the airline may lose my bag, so best to carry it onboard. East: emotions that customers have or are likely to experience; for example, I feel rushed and annoyed that this is so hard to deal with. I’m anxious about getting to the gate and missing my flight. I really need this trip to be behind
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  • 47. 3. Capture your customer’s considerations As well as capturing the major goals, which characterise the stages of the map, the journey map should also try to detail more specific goals and considerations that the customer might have along the way. For instance, these might include: wanting to find out what the different options are; ensuring that he/she is paying a fair price; or seeking reassurance that he/she has all the information readily available about the flight. By capturing these goals/considerations in each stage of the journey, you are able to examine how well you are meeting those goals and answering any questions.
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  • 49. 4. Detail every touchpoint At each of the stages that has been mapped out, consider where the touchpoints occur.
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  • 51. 5. Detail customer pain points After you have registered all the touchpoints, you will now be able to mark out your known pain points on the journey map. Having conducted your interviews with customer-facing staff and teams that work on touchpoints, you will know where these pain points are. This will come in useful for later, when you are looking for actions to take following the mapping process.
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  • 53. 6. Chart changing customer emotions Now you have detailed the pain points (and the successes), you can also reflect your customer emotions. While some of this might be dictated by the quality of your service, some other emotions may be a result of the scenario the customer finds him/herself in and the goals he/she wishes to achieve.
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  • 55. 7. Consider what other detail can be added to the map The more comprehensive the map is, the more likely it is to accurately represent the customer’s journey, and the higher the probability that you will be able to identify areas for improvement. Therefore, any additional details that could provide insight into the journey should be taken into consideration for inclusion.
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  • 57. 8. Outline opportunities for improvements Remember, the map is a means to an end, not the end itself. If the map doesn’t result in actions being taken, then it has been a waste of time. Therefore, it is important that as the map is being filled out, and pain points and opportunities for improvement are being identified, that these are charted.
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  • 60. The Customer Lifecycle PURCHASE RECOMMEND MAINTAIN RESEARCH NEED RECEIVE USE 1 2 3 4 5 6 7 8 SELECT BUY OWN Support & ServeMarket & Sell
  • 61. Customer-experience leaders start with a differentiating purpose and focus on improving the most important customer journey first.
  • 62. Six actions are critical to managing customer-experience: A. Step back and identify the nature of the journeys customers take—from the customer’s point of view. B. Understand how customers navigate across the touchpoints as they move through the journey. C. Anticipate the customer’s needs, expectations, and desires during each part of the journey. D. Build an understanding of what is working and what is not. E. Set priorities for the most important gaps and opportunities to improve the journey. F. Come to grips with fixing root-cause issues and redesigning the journeys for a better end-toend experience.
  • 63. Use customer journeys to empower the front line Every leading customer-experience company has motivated employees who embody the customer and brand promise in their interactions with consumers and are empowered to do the right thing.
  • 64. Four simple rules for building a sense of engagement on the front line:
  • 65. Listen to employees and establish mechanisms to address their issues and needs. 1.
  • 66. “Best practice is to think of employees’ journeys in the same way as customer journeys and to create a parallel path for collecting, analyzing, and acting on their feed-back.”
  • 67. 2. Hire for attitude, not aptitude—in other words, if you want to provide friendly service, hire friendly people. Interviewing prospective employees in groups, as Airways does, is one way to observe how they interact.
  • 68. Reinforcing new behaviors through formal mechanisms. Financial incentives can help, but nonfinancial recognition schemes are more powerful. Consider the recognition cards that senior leaders sign and hand out to employees
  • 69. Give your people a purpose, not rules, so that the company sets clear expectations and lets employees know that it trusts them to do their jobs. 3.
  • 70. The main hurdle in customer experience is translating boardroom vision into action at the front line.
  • 71. 4.Tap into the creativity of your front- line employees by giving them the autonomy to do whatever they can to improve the customer experience and fix problems themselves.
  • 73. Five Elements are typical of CX transformation
  • 75. Customer experience metrics Customer experience metrics must measure and report on three phases of the customer lifecycle: join – the process of ordering a service on-board – the process of activating and training the customer to use the service support – the process of resolving problems in the delivery of services including accurate billing.
  • 76. Customer Experience Metrics Customer experience measurement can be divided into two broad Approaches: 1-Outside-in: NPS and customer satisfaction surveys measure and report customers‟ perception of products and services. Such KPIs are indicators of propensity to churn and the influences customers have on others to join or leave.
  • 77. 2-Inside-out: Examples include order-to- provision, first contact resolution, long-tail re-callers (for example, more than three calls) and churn-rate metrics. Customers form perceptions when they interact with employees, IT systems and services at different lifecycle phases, including: • commitment phase • order-to-fulfilment process • self-service and multi-channel customer interaction • accuracy of bill • quality of service • availability of service. 77
  • 78. Customer satisfaction metrics answer questions such as the following. • Do customers get the product or service that they wanted at the time they requested? • Was the product or service easy to use? • Was the product or service reliable? • Was the customer charged the price that the salesperson pitched? • Can customers get the support they need quickly and efficiently? 78 Customer experience metrics
  • 79. Best Customer Experience in 2016: Online Shoe Retailer Supermarket Chain Financial Services Online Retailer coffeehouse chain Fashion Retailer Tech and CE Hotel ChainAirlines Entertainment complex fast food restaurant chain Fashion Brand
  • 80. Understand & Empathize Educate & Align Identify & Innovate Test & Pilot Validate & Scale CUSTOMER CENTRIC TRANSFORMATION & INNOVATION Process to drive cultural and execution orientated change
  • 81. 81 “The road to failed customer- experience programs is paved with good intentions.” -Harald Fanderl- Partner at McKinsey & Company, Global leader customer experience service line.
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