Smart Loyalty Brochure

Love your customers, grow your business Loyal customers directly benefit your bottom line: it costs around five times more to acquire a new customer than it does to retain an existing one.

A happy customer is also more likely to purchase more products and recommend you to others more often. In this way, your customers’ relationship with your business can become a significant point of difference.

It is important for trade customers to feel valued and appreciated, in order to maximise repeat business. Reward and loyalty programmes tip the scales in your favour, both providing the opportunity for greater engagement with existing customers, as well as enticing new business acquisition.

Our rewards programmes are a measurable marketing platform that positions your business for growth.

80%

of customers buy

more from companies when they have a loyalty programme.

OUR STORY Why Loyalty?______________________________________ 3 Our Loyalty Coalitions_______________________________ 7 Our Bespoke Solutions_____________________________ 13 Customer Loyalty Engagement Services______________ 16 Member App_____________________________________ 17 Customer Insights_________________________________ 28 Case Studies_____________________________________ 31 Testimonials______________________________________ 38 Our Heritage______________________________________ 41

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the publishers. ŠCopyright Smart Loyalty

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THERE’S A BIG

DIFFERENCE

BETWEEN A SATISFIED

CUSTOMER

AND A LOYAL

CUSTOMER

WHY LOYALTY AS A BUSINESS STRATEGY In a marketplace that continues to become more commoditised, it’s now more difficult than ever to create a point of difference.

A tailored loyalty strategy can deliver a number of business outcomes: Create an emotional connection – Realise the benefits of

giving tangible rewards, which have a much higher perceived value than cash-related incentives, such as discounts and rebates.

Customer retention – Thank your valued customers and give them

a reason to continue to choose your brand.

Get more business – A way to grow the share of wallet from your

existing customers.

Enrich your communication strategy – Send personal and

relevant communications at the right time to your customers about your

products, services and promotions. It’s like having an extra salesperson, 24/7.

Add value to your acquisition strategy – Create a real point

of difference in a world of discounts and rebates.

Better understand your end customer – Predict and meet

customer preferences with the data, intelligence and unique insights created through our loyalty solutions.

Lower your risk, maximise your ROI – Utilise a business tool that

only costs you when your customer performs the desired actions.

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THE LOYALTY COUNTERPUNCH An advantage for you An effective loyalty programme is your counter-punch to retaining your customers, acquiring new customers and growing overall sales.

It’s about your bottom line Ultimately, an effective loyalty programme is not about trade customers earning points and redeeming rewards. It is about building and enhancing customer relationships, and showing them a level of customer service that exceeds their expectations: a marketing technique that will help keep your customers loyal. The programmes give you the opportunity to gain a higher calibre of new customers, with an excellent lifetime value to your business.

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LET’S GET TO THE POINT Loyalty programmes can significantly influence buying behaviour: it has been proven that customers are more likely to buy from a company that has a programme in place and they will buy more from that company over time.

If you operate in a crowded, competitive environment and want to be top-of-mind with your customers, then a well-crafted loyalty programme can greatly influence buying decisions – not just who your customers buy from, but also how much they buy, as well as increase the likelihood of repeat business.

Loyalty programmes also offer you the chance to capture useful customer data: you can dig a bit deeper into the information you now have to further capitalise on any opportunities to engage your customers.

55%

of people will choose a product or company with a loyalty programme over one without.

80%

of customers buy more from

companies when they have a loyalty programme membership.

Point me in the right direction Points-based programmes that enable members to redeem points for vouchers or other rewards remain popular with both consumers and trade business customers.

54%

of people state that they like points-based loyalty programmes.

77%

of people ranked points-based programmes that enable members to redeem points for vouchers or other rewards as highly important.

Rewards: give the people what they want Data from Deloitte indicates people want personalised rewards or other experiences to be offered, tailored to their preferences or purchasing history. With 2 in 5 people stating they appreciate suggestions for rewards as well, the results are in: rewards programmes with flexibility and variety are key.

44%

of people want the option of personalised rewards based on their purchase history.

41%

of people agree that loyalty programmes help customers know what they want, and provide them with helpful suggestions and rewards.

32%

of people want a loyalty scheme that better reflects their lifestyle, such as offering them ‘freebies’ for activities they enjoy.

Source data: For Love or Money consumer study into loyalty programmes 2013; Deloitte, Customer loyalty: A relationship, not just a scheme, July 2017

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WHY LOYALTY WORKS RETAIN, ATTRACT & GROW Retain Customers Recognising and rewarding your customers is a major component of any loyalty strategy.

To maximise results, it is as important to combine recognition with targeted, relevant and personal communications.

Why does it work? Put simply, it’s reciprocation: if you give freely to someone, that person is more inclined to give back to you in turn. In this way, loyalty programmes create a deeper

and longer-lasting customer connection than any product or service alone - and it costs your customers nothing to participate. Our partnership provides your business with a point of difference that makes it difficult for your key customers to be swayed by your competitors.

Attract New Customers In today’s world, it is not enough to just have competitive pricing, quality products and good service. Your customer wants to know what’s in it for them. Competitive pricing is a basic expectation across all customer groups, and working off low prices alone serves to only attract new, discount-hungry customers who will quickly move on for a better deal. Today’s customers want something additional out of a business relationship; personal rewards for their business spend helps create that point of difference.

Why? The ability to give your customer their own choice of reward can make all the difference

when attracting new customers. By pulling together compelling offers, and using marketing tools to present the offer well, it has been proven to change buyer behaviour and start customers down the path of trading with your business for value rather than price. This is especially powerful when operating in a crowded market where you need an extra edge over your competitors.

Grow Customers Overall Our programmes work like a silent salesperson when you are not in front of your customers.

Studies show that customers purchasing similar products will focus on the reward element in making their purchasing decision.

By fostering a more personal attachment to their rewards programme, customers feel more positive about trading with your business, and will do more business with you, more often.

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OUR LOYALTY COALITIONS Coalition loyalty programmes are highly successful the world over. Your customers can generate rewards from your business and other businesses that they choose to trade with. Coalitions have proven to generate a deeper sense of loyalty to the programme and ultimately to your business.

Smart Loyalty’s coalition loyalty experts will work with your business to build value from one of our existing coalition programmes and ensure that your point of difference is always protected.

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OUR FLAGSHIP COALITION PROGRAMME Launched in 1997 SmartTrade is an industry-based coalition trade rewards programme developed to support the Building/Construction industry along with the Farming/Agricultural industry. SmartTrade aligns itself with key companies and brands with a common customer database, providing an exclusive point of difference over their competitors.

SmartTrade provides a unique platform for over 300 partners to acquire new trade business, whilst strengthening existing customer relationships by motivating them to spend more and to pay their accounts on time.

For Partners (Merchants and Suppliers)

The programme provides a behavioural change tool utilising the element of personal rewards to generate loyalty. We have developed an engagement platform to deliver highly personalised messaging for our programme partners, offering them rich buying activity, and behavioural intelligence data to drive retention, growth and acquisition.

For Members (Your customers)

It’s a simple process for members. They simply spend, earn and redeem. Their points from the many and varied programme partners pool to a single account and can be used to redeem their choice of reward. Our point of difference is that we give your customers the power to decide precisely what they want. From rugby tickets to music concerts, engagements rings or flights around the world, they choose just what they want to spend their points on. Members can also redeem from a catalogue or thousands of rewards online.

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Leverage our partner network to grow your business‌

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AN AUTOMOTIVE WORLD FIRST Launched in 2007, GetGenuine is an automotive trade rewards programme that utilises the power of collective automotive brands working together to incentivise the trade to purchase genuine parts.

GetGenuine was created to provide manufacturers with an exclusive point of difference over the aftermarket. GetGenuine is a world first in the automotive industry and provides a unique platform for over 30 automotive brands to acquire new trade business, whilst strengthening existing customer relationships and motivating them to spend more.

For Partners (OEMs + Dealerships)

The programme provides a behavioural change tool, utilising the element of personal reward to generate loyalty. We have created an engagement platform to deliver highly personalised messaging for our automotive brands, offering them rich customer buying activity and behavioural intelligence data to drive retention, growth and acquisition.

For Members

It’s a simple process for GetGenuine members.

They simply spend, earn, and redeem. Members earn points from our partnered businesses, which are then pooled into the one account and used to redeem their choice of reward. Our point of difference is that we give GetGenuine members the power to decide precisely what they want to spend their points on: they can choose virtually any reward they want*! Members can also redeem from the hundreds of rewards we have on offer in our catalogues, or thousands of rewards featured in our online Rewards Shop.

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GetGenuine delivers a unified industry response

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HONDA’S ASSESSMENT of the GetGenuine GetRewards Programme This chart showcases Honda’s trade position both before and after partnering with the GetGenuine GetRewards programme.

Database quality 10

Value of direct mail to customer

8

Targets all trade customers

6 4

Knowledge of customer buying activity

2

Customer contactability

0

Frequency of communication Customer retention

Customer engagement with direct mail

Ability to engage digitally

KEY Without industry rewards programme With industry rewards programme

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Source: Honda New Zealand Ltd

OUR BESPOKE SOLUTIONS A bespoke loyalty programme offering incentives, is a great way to drive performance across your sales channels. Strong relationships with your sales staff leads to long-term sales success. We listen, design and implement YOUR very own branded programme.

We will work closely with your business to determine whether a coalition programme or a customised programme is best suited to your specific requirements. We will then design, build and operate every component of the loyalty programme, from strategy and data analytics through to call centre services and sourcing rewards.

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A bespoke rewards programme designed for Fuso NZ. FUSO Performance Rewards, launched in 2018, has been designed to reward sales staff. The programme incorporates sales targets, quarterly leader boards and bonus points prizes to incentivise sales staff. Members of FUSO Performance Rewards can redeem their points on any reward they want or choose from over 4,000 products in the Rewards Shop. The programme is targeted at two different audiences; truck salespeople and aftersales (parts) salespeople.

Trucks

Members of the FUSO Performance Rewards Trucks programme earn points for every FUSO truck sold. As well as earning points on every sale, the top ten performing salespeople each quarter receive a share of one million bonus points.

Aftersales

Members of the aftersales programme are given monthly sales targets for their dealership. If they reach their sales target, they earn reward points on their sales. They also have the opportunity to earn bonus points by exceeding quarterly targets.

Both programmes are supported by a customised app, online dashboard and regular email communications.

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fusorewards.co.nz

Customised solutions for New Zealand Window Shades.

This is a unique programme where employees of retailers selling Luxaflex products are provided with an incentive to strongly endorse this brand to the consumer. This long standing programme continues to deliver beyond its target ROI, by providing an exclusive point of difference in a highly competitive marketplace.

Luxaflex Inspire was launched in 2008 and has over 250 retailers earning points on their sales. The programme incorporates sales targets, bonus points and a multi-channel communication strategy including an online dashboard, monthly emails, a customised app, and dedicated account managers.

Luxaflex Inspire was the first bespoke programme to launch its own customised app. Using our “White Label” solution to create a branded app without the high costs and long timeframes that come with app development. The app gives members easy access to their points balance, sales targets, rewards, exclusive deals, promotions and so much more.

“We have been impressed with the number of our customers who regularly redeem their points and the variety and quality of goods on offer. They certainly seem to value the opportunity and without doubt our sales and collections have improved as a result”.

Managing Director New Zealand Window Shades

luxaflexrewards.co.nz

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FULL SUITE OF CUSTOMER LOYALTY ENGAGEMENT SERVICES We have a vast range of marketing and customer engagement services that complement our world class suite of loyalty programmes. These tools leverage off the power of the information generated in our loyalty databases and assist businesses in achieving growth. Strategies can be formulated based on customer behaviour and segmented marketing will target the right customers with messages that resonate to change buying behaviour.

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AN APP FOR YOUR CUSTOMERS Our Coalition Loyalty Apps make it quick and easy for your customers to get the most out of their membership.

Your customers can:

. Find and connect with local and national suppliers to earn more reward points . Track their points balance, targets, redemptions and wishlist items . Get instant notifications on new deals, promotions and competitions

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INDUSTRY PUBLICATIONS

We run a publication for the automotive industry called the Genuine Article.

This is delivered to over 6,000 trade mechanics and panel shops throughout New Zealand. The Genuine Article features product specials from New Zealand’s leading automotive brands, plus industry news and other supplier promotions, all geared to drive growth and engagement in the GetGenuine Rewards Programme.

Genuine Article chosen as the preferred trade publication!

Feedback from our 10 year birthday survey sent out in July 2017 to GetGenuine members (automotive trade customers) nationwide

97%

of respondents said they read the Genuine Article.

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REWARDS CATALOGUE

We deliver a Summer Catalogue and a Winter Catalogue to all our members (your customers), showcasing the latest technology, great brands and the most popular products from New Zealand’s leading suppliers.

67% of respondents said the Rewards Catalogue is the main influence when shopping for rewards!

Feedback from our survey sent out in July 2017 to programme members nationwide.

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REWARD EMAILS We tailor our rewards communications to make the most of all seasons, celebrations and occasions. Featuring products from leading suppliers, our personalised redemption emails are a way for your customers to further engage with the programme and demonstrate additional ways they can redeem their points.

20

SOCIAL

MEDIA

Social media is used as an additional tool to increase engagement in the SmartTrade and GetGenuine rewards programmes.

We feature our promotions, giveaways and keep your customers up-to-date with the latest rewards, offers, key information and programme news.

facebook.com/GetGenuineNZ/

facebook.com/SmartTradeNZ/ 21

YOUR CUSTOMERS WILL LOVE OUR BRAND OF LOYALTY

PROMOTIONS

& GIVEAWAYS We drive engagement, excitement and an emotional connection by applying the simple concept of surprising and delighting your customers.

We have a strategy to roll out regular promotions, prizes and giveaways, helping to improve the overall experience for your customers.

Some of the prizes won by members include:

Wonders of Turkey Tour

Dubai Experience

Luxury Fiji Getaway

San Francisco & Alaskan Excursion

Alaskan Adventure Cruise

Winter Escape to Queenstown

Home Prize Package X2

African Safari

Get me to Fiji

$10,000

$20,000

$11,000

$8,000

$12,000

$8,000

$10,000

$5,000

$3,000

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T S bE OF THE

24

T S E b

OUR ONLINE

REWARDS SHOP

WORLD-CLASS BRANDS, ALL IN ONE PLACE Your customers can redeem their points on over 4,000 rewards from top brands and leading suppliers. rewards-shop.com

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'

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REWARDING YOUR CUSTOMERS WITH EXACTLY WHAT THEY WANT* Some of our members have redeemed points for:

Pete used his points to get a new mountain bike

Jarred used his points to get a spa pool

Garry used his points for a helicopter flight

Dave & Jo used their points for their wedding

John used his points for a holiday in Hawaii

Mike & Sally used their points for an African safari

LETTING IMAGINATIONS RUN FREE! We specialise in delivering the rewards your customers dream of. rewards-shop.com/dream-rewards *Terms and conditions apply.

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INSTANT ACCESS

TO CUSTOMER INSIGHTS YOUR DASHBOARD Gain a deeper understanding of your customers using the Smart Loyalty online dashboard and app.

With behavioural insights at your fingertips, you have the ultimate tool to drive business growth.

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A TRADE ANALYTICS PLATFORM

PARTNER APP The Smart Loyalty app provides access to

customer insights even when you’re on the road!

- Access customer accounts and contacts

- Track purchase behaviour and view recent redemptions - Add customers to the programme

- See programme news, promotions and special offers

- Communicate directly with customers via instant notifications

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CASE STUDIES & TESTIMONIALS We work with our programme partners to create and implement targeted marketing campaigns direct to the trade. From planning the objectives, through to delivery and analysis, we assist with acquisition, reactivation and sales growth campaigns, as well as exclusive promotional offers. Following are examples of some of the effective promotions delivered to engage new and existing trade customers.

The results speak for themselves.

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THE 5TH ANNUAL TAKE ME TO JAPAN PROMOTION

Case Study

Honda New Zealand wanted to grow parts sales using the GetGenuine database.

We designed and implemented a campaign whereby the trade received Scratch card tickets with each order from Honda with hundreds of prizes including bonus points.

The campaign ran for 3 months and was delivered through the GetGenuine digital platform and reinforced with our industry publication, the Genuine Article.

Results

18% growth on prior year sales to the trade

33%

open rates Average of on email driven campaigns

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“

All in all, a database/loyalty component to our sales and marketing mix we would struggle to do without.

Managing Director Waikato Milking Systems

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�

Case Study Sticks Building Supplies wanted to run a campaign with the objective being to increase existing customer spend by 20% or more, on the same period in the previous year. They also wanted to acquire new customers via the SmartTrade member database, with a goal of getting them to reach a minimum spend target during the promotional period.

We created and delivered a Stretch Target Campaign for them over a three month period, that communicated a spend target to their selected trade customers. Customers that reached their 20% target within the given timeframe were rewarded with double SmartTrade points and also received an entry into the draw to win a Panasonic 40” TV.

The delivery of the campaign was segmented across three different groups: • New customers • Existing customers that did not make any purchases in the same period in the previous year • Existing customers that are regular spenders

Results 56% increase in sales at lease one of 32% hit their monthly targets open rate 60% average on emails

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“GetGenuine has become an integral part of our sales and marketing strategy for the trade customer segment of the automotive market. We continue to see strong growth, high levels of engagement and great return on investment through the GetGenuine programme.�

Fixed Operations Manager Ford New Zealand

Case Study Ford was looking to grow parts sales to trade mechanics and panel shops throughout New Zealand.

GetGenuine designed and implemented a campaign whereby trade customers were given a 20% stretch target, based on their purchases at the same time in the previous year. If these customers hit their target, they received triple reward points. GetGenuine delivered the entire promotion through a combination of electronic and direct mail channels to thousands of customers.

The campaign achieved a 28% lift in spend over the previous year’s figures.

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“We are absolutely delighted with the support from the Smart Loyalty team. We have had positive exposure for our brand and the member uptake of the offer has been great. I have never seen an initial surge of interest and uptake as I have with Smart Loyalty’s members.”

Scott Russ, National Manager Groups & Associations OfficeMax

Case Study As part of their launch campaign, OfficeMax wanted to acquire new customers through the SmartTrade and GetGenuine database. They also wanted to identify their existing customers that are part of the SmartTrade and/or GetGenuine programmes to notify them that they can start earning points on their spend and to increase sales with a points incentive.

Smart Loyalty created and delivered a two month launch campaign to the entire database. Month one was designed to generate leads and consisted of five points prizes to be given away to members that registering interest in earning points with OfficeMax. The objective for month two was to encourage spend with OfficeMax, whereby members received one entry for every $50 spent and went into the draw to win one of three 50,000 points prizes, as well as earning points on their spend.

Smart Loyalty managed the whole process from the design, segmentation and delivery of emails to creation of landing pages, website and social media integration to lead management and reporting.

Results 955

leads generated

60%

conversion rate on landing page

34.4%

average open rate 37

Programme Partner Testimonials

“The programmes’ integration within the company has grown year by year as we continue to evolve the partnership and utilise a tool in the market that provides us with a key point of difference to our competitors.”

Managing Director Tyreline Distributors

“SmartTrade have built a solid reputation for having one of the best rewards programmes in the building industry. The app is great and keeps everyone engaged. We highly recommend the SmartTrade programme to anyone wanting to reward existing customers, build new business and improve prompt payment .”

Drew Ridley Managing Director, Kiwi Timber, Horitiu

“Mobilcard has been working with Smart Loyalty for close on two years and during this time has found them a very professional organisation with an excellent management team. We have seen amazing growth in Mobilcard through Smart Loyalty.”

Kim Webber Mobilcard National Channel Manager, Mobil Oil NZ Ltd

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Member Testimonials

“We have had the pleasure of being part of this great rewards programme for a number of years now, and we make a point of using the partners connected to it. The fact that we accumulate the points so fast and receive the rewards that we want, make this programme a no-brainer to be part of.

The team at GetGenuine are always helpful, follow up and most of all great to deal with”.

Corey McLaughlan, Managing Director

Ashton Panel and Paint Ltd

GetGenuine Programme Member, Lower Hutt

“As a customer of Metalcraft Roofing, it’s a huge cherry on the top to be rewarded for spending money with businesses that we are loyal to.

Everybody wins and being able to spend points on pretty much anything, certainly keeps the wife happy. Thanks for the awesome service and quick delivery too”.

Mark Thorburn,

Thorburn Builders SmartTrade Programme Member, Waikato

“When we recently needed to replace 37 monitors in our call centre, we were able to use our reward points to purchase all of them. We have also been using points to book all of our air travel. If you are not currently part of the GetGenuine experience, I highly recommend it. The more partners you jump on board with, the more points you will receive! Simply brilliant!”

Pati Bloor, Operations Manager Smith & Smith GetGenuine Programme Member, Nationwide

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LOVEYOURCUSTOMERS.CO.NZ

In today’s often crowded marketplace it is becoming increasingly difficult for businesses to stand out.

The right loyalty solution can help any business successfully drive growth and value in a competitive marketplace.

the world know that in seeking to drive long-term profitable relationships from their customers, it is critical to understand the role that the law of reciprocity plays in establishing trust, commitment and an emotional connection with their brand.

The fundamental question of ‘why loyalty as a business strategy’ has never been more in focus around the management team and board room table.

The largest and most innovative companies around

At Smart Loyalty we specialise in helping companies build lasting, profitable relationships with their customers.

OUR HERITAGE Smart Loyalty is the proud founder of the SmartTrade and GetGenuine programmes. We have championed business-to-business loyalty for over 20 years, delivering a broad range of solutions to multiple markets. Our programmes currently support 1,200 merchants, rewarding over 30,000 small business owners in the automotive, building and construction and agricultural industries.

Our programmes are managed by Smart Loyalty, a division of Marque Group.

For further information, visit smartloyalty.co.nz

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