Paula: Welcome to Let’s Talk Loyalty, an industry podcast for loyalty marketing professionals. I’m your host, Paula Thomas, and if you work in loyalty marketing, join me every week to learn the latest ideas from loyalty specialists around the world.
I’m delighted to announce Capillary Technologies as the new title sponsor for Loyalty TV. Capillary’s mission is to bring the loyalty market out of the 1980s and into the present, ditching the slow, chunky manual services of the past. Capillary’s all about making loyalty management easy, with scalable AI powered tech that turns loyalty managers into superheroes. Say goodbye to outdated methods and check out the exciting new way to achieve loyalty excellence in 2024.
Hello and welcome to today’s episode of Let’s Talk Loyalty and Loyalty TV. I’ve just come back from the annual conference of the Asia Pacific Loyalty Association, and I’m thrilled now to be interviewing one of their award-winning programs. Baker’s Delight won the award for the Best Loyalty Program Launch at the 2023-2024 awards. So I’m delighted to share the story of this young program with you today.
Our guest is Lucila Braga, the Head of Digital Customer Experience for Baker’s Delight. With overall responsibility for their Dough Getters program. As a brand, quite simply, Bakers Delight sells freshly baked bread. And they’ve been doing so around the country since 1980. Their loyalty program is also super simple, as you’ll hear us discuss in today’s conversation. Simplicity is definitely something we love. Both as customers and as program operators. So I hope you enjoy our conversation.
So Lucila Braga from Baker’s Delight, Welcome to Let’s Talk Loyalty and to Loyalty TV.
Lucila: Thanks for having me.
Paula: Amazing. Long overdue, first and foremost. And also I can’t believe that we were in the same conference last week and we didn’t get to meet in person. Yet here we are on screen talking about your incredible loyalty program. You’re obviously doing some amazing work down there.
Lucila: Oh, thank you. I think we were destined to meet regardless. And I’m sure we’ll cross paths in reality, non virtually at some point.
Paula: Indeed. Yes. I’m already telling people about all the conferences I’m planning to attend in 2025, would you believe? So, so yeah, we can make some plans. Please God to get together, Lucila.
So listen, let’s get into the important conversation that I know the audience is Super excited to, to hear today. We’re going to start off with our usual opening question. As you know, it’s always super exciting for us to hear what you as a loyalty professional tend to admire either around the world or closer to home. So Lucila from Baker’s Delight, what is your favorite loyalty program?
Lucila: I am a cyclist, so I’ve picked one that is close to my heart. And I’ve gone in with the focus of as a customer, but I also admire what the brand has done in terms of its commitment to rewarding their members. I’ve picked Rapha, which is a cycling brand.
It’s a global cycling brand that sells cycling kits, clothes all sorts of cycling apparel in terms of primarily road cyclists. And they’ve got about 30 stores globally. The membership is it doesn’t have a name per se in terms of the program that they offer, but it’s a paid membership globally that you can access and that gives you a variety of benefits, including having access to weekly club rides and training rides, as well as specific kits that get specifically designed for club members. So if you’re not a member, you can not buy those really nice looking cycling kit. So you have to be a member to be able to purchase that. And they are generally at a discounted rate as well. And if you go traveling, as I said, they’ve got about 30 stores globally. You can borrow a bike or you can join their club rides, which is a great way to embed yourself into a new culture and the new community.
Paula: Wow. Well, that’s ticking all of my boxes, Lucila, right off the bat. First of all, as you know, sometimes we get a lot of people talking about the same global program. So to have one that’s never been mentioned before is a super exciting. I will say actually before I forget that Baker’s Delight and your program was also mentioned by a few people as their favorite loyalty program.
And actually that’s how we did originally get connected to you. So, so that’s a really cool thing.
Lucila: So please.
Paula: Yes, exactly. So, and more than once, I think at least twice you’ve been mentioned. So this is where we find out where all the good stuff is. And what I really love actually about the one you’ve mentioned there, Lucila is first of all, I used to be a road cyclist. Unfortunately not at the moment and not from very many years, but there was so much, first of all, stuff that I needed, you know, in terms of the kit and the community side. Like an access to training rides, you know, you really need to know where your people are. So I think actually we’re quite lucky like that as a loyalty community that we are so niche and so well defined that clearly that’s exactly what Rapha has as well in terms of you know, first of all, charging you to be a member of a program, but giving you amazing benefits.
Lucila: Yeah. Yeah. It works well. It’s a win-win.
Paula: Win, win, win. All the way. Fabulous. So listen, we’ll make sure to to get links to that loyalty program. Of course, there are listeners all around the world who would love to, I suppose, check it out. So we’ll make sure to put that into our show notes.
So let’s get into more details about you, Lucila. I know you’ve been working in loyalty in lots of amazing brands over your whole career. So take us back to the beginning. How did you get into the industry and what have you been working on?
Lucila: You make myself sound so special, Paula, thank you. I’ve been in marketing for over 20 over 15 years and have very much a specialized in food retail for nearly 10 years now.
So I started in general marketing and migrated my way into digital marketing and sort of a spread of different industries, and then until honing into the food retail, which is where I’m currently in and intend to continue. So the first experience that I had with food retail was with Flybuys New Zealand, which is a coalition program owned by a number of large brands and I worked on the account of Foodstuffs, which is a chain of supermarkets in New Zealand, one of the biggest and my role was very much around activating, working, activating campaigns and working with the marketing team at Foodstuffs to create and generate their strategy.
So moving on from then, I migrated to from Auckland in New Zealand to Melbourne in Australia and to take a role at Coles where again, I worked very closely with the Flybuys team, a separate Flybuys team, there’s a Flybuys team in New Zealand, which no longer exists now, but there’s a Flybuys team, a Flybuys program in Australia for the ones that don’t know, which have over 10 million members.
And Coles when I started, when I joined the business aren’t partially aren’t that Flybuys Australia, which now they’ve separated since, but my role was primarily to work on the strategy for how to grow e commerce initially. And then when Flybuys and Coles went different directions, part ways, I took the ownership of how we activate the Flybuys data within the Coles Group. And yeah, so I’ve got looking a bit beyond just the e-commerce space, but also looking how we can grow and engage our members.
One of the key projects in there was the removal of the print catalog and pushing how we’re going to do the digitization of the catalog, which was a project that I was, I played a key role in, and that was such an interesting project and a massive learning for myself and everyone that was involved.
And moving on to Baker’s Delight, which I am the Head of Digital Customer Experience, I’ve been there for three years now. So I’d lead the loyalty program as well as all of our digital channels from paid, organic, website, e-commerce as well, but I probably would say spend 60, if not 70 percent of my time on the loyalty strategy and the loyalty execution as well. I’ve got a team of, you know, 12 people and a big chunk of that dedicate their time to manage the loyalty program.
Paula: Wow. 12 people. My goodness. You’re very lucky, Lucila. We are a tiny team of three. I often wish I had resources like that. So, so that’s absolutely incredible. A wonderful career. Sounds like you fell in love with loyalty from the outset. And amazing now that you are leading this program, which as we know, won the best program, relaunch or launch with the Asia Pacific loyalty awards in its inaugural year. So definitely something you must be incredibly proud of. It’s a it’s an amazing story.
Lucila: Yeah. I’ll tell you a bit about Baker’s Delight. So it’s a business that sells baked goods around Australia. We’ve got about 520 stores in Australia. It’s family owned. It’s over 40 years old and it is primarily franchised.
The program originally started as a stamp card. So for every 10 loaves that you purchased, you’ll get a free loaf and we had a very engaged base, but obviously as you know, it’s very hard to quantify and there’s no insights.
So about three years ago we launched the Dough Getters program, which is fully digitized with its own app and that has been going from strength to strength. So we’ve got nearly one and a half million members now, and who are very engaged with the program. The current structure of how you earn and redeem is for every 55 that you spend, you earn five to spend in the bakery.
Paula: Nice. Yeah. Simple. That’s amazing.
Lucila: Yeah. I think that’s what the appeal is for customers how simple it is, and we do have an incentive to join. So throughout the year, if you, for new members, we give a free loaf for everyone that joins and around the Easter period, you get a free Hot Cross Bun six pack.
Paula: Beautiful.
Lucila: Which is very popular as you can imagine.
Paula: Oh, I could totally imagine Lucila. And you know what I’m hearing coming through you know, there’s as well as the simplicity, there’s the integrity of the brand, you know, whether it’s the program name or the free hot cost bun. And as you, you know, as you’re talking about the currency and loaves, you know, it’s all totally aligned. Like I think for members, there will never be any confusion in terms of why would I join Dough Getters? And exactly what am I getting and when, and particularly when you’re replacing a stamp card program, because as we know, there’s the there’s value, especially maybe in smaller businesses to start with something as simple as a stamp card program.
But as you said, you know, there’s all the downsides of course, you know, there, there is no data. I think there’s a lot of fraud as well, to be honest, when it comes to stamp cards. So moving to a digital program makes so much sense but can come with a lot of complexity as well. Especially if people think, well, just, you know, our users don’t want to download another app. So were you around when the decision was made to go from the stamp card into digital or did you get involved along the way?
Lucila: I got involved along the way, but we very much had to cater. We do have a large demographic that is older, so there was definitely a lot of hesitation in terms of rolling it out and people taking it on board. So we had to come up with a alternative solution. So the interim solution that we had was a little card with a barcode, which would enable the elderly demographic to join and make the most of the program. And very much they rely on our customer service team when they call up and they’ve got any inquiries.
I think the uptake of the app has been quite positive and quite high, but we do also have the alternative of members just giving their phone number in the baker and the staff can key that phone number in. So that makes it quite easy for them to earn and redeem.
Paula: Totally. You know, that’s my favorite mechanic. Actually, Lucila, I think, you know, at the risk of sounding too simplistic for me, it’s the one piece of information that I will always have, you know, whether anything else, whether I have my phone or my app I’m actually having phone issues at the moment, so it doesn’t always open the apps when I want to, but I will never miss out if somebody can just take my phone number. Like to me, that’s like almost a no brainer in terms of a backup for a mechanic.
Lucila: Yeah, I think that’s one key difference differentiator of a program and that dictates its success. I find is how simple it is and to redeem and earn and how simple it is for a customer to understand it.
Paula: Totally. Totally. And the name as well. Is there a story around that, Lucila? Because you know, Dough Getters you know, the first time I heard it, I was like, Oh, that’s so cool. Like, did it come up internally? Do you know, was there an agency involved? Sometimes these naming parts of programs can actually be quite contentious internally because everybody wants to put the brand name on it. So, so have you any insight in terms of where the name came from?
Lucila: It was actually done internally. There was a list of names and we, the team tried to be, take everyone’s opinions into consideration, but in the end, someone made the executive decision and Dough Getters, it was. But it does take very much into account the essence of the brand, which is very much around having fun and being a bit silly. And when we say, when you’ve earned your 5 voucher, we actually say you’ve earned 5 of dough. So it’s, yeah, it evolves throughout our comms and our tone of voice as well.
Paula: Amazing. I love it. You know, a bit of clever stuff on the side, as well as the silly, it’s a brilliant balance. Well done.
Lucila: Thank you.
Paula: Cool. Talk to us then about the I suppose the stakeholders Lucila, I think that for me is always a particularly complex scenario when you do have franchisees who are all, I know, independent business owners in their own right. So for you as a brand to I suppose, require them to support a proposition, which is, you said, an incredible amount of bakeries. I think you said more than 500 throughout the country. If I’m not mistaken, I’m looking back at my notes here.
Lucila: Yeah, yeah. 500.
Paula: So yeah, amazing. And I’m guessing therefore hundreds of owners. So were you involved when the the original, I suppose, business case was being presented to those franchisees and any insights you can share with our audience in terms of, I suppose, getting their adoption before you could even get into as opposed to the consumer side of designing and building the program.
Lucila: The business case presentation to the network was before my time. Having said that it is a constant focus for us trying to get them on board. And if you go to a Bakerzilla across different, well, if you go to different Bakers Delight across the country, you see that you get a different experience. And there are team members that are very much on board with our program and some not so much and that cascades down from the franchisee. So yes, to your point, it does add a completely different dynamic to how we work and how we accelerate and how we promote things and launch different initiatives to market.
When I had my interview originally at Baker’s Delight, very early days, I was talking to the HR person and she said, oh, you know, you don’t have a franchisee, franchise experience, you know, it’s quite a different environment. And I remember thinking to myself, I come from Coles, which is one of the largest supermarkets in Australia, dealing with so many different stakeholders. And I’m thinking to myself, how different can it actually be? And, oh my goodness, I was so naive. So yeah, it takes, as soon as you, it took me about six months to to understand how complex it is.
And in a sense you have to put equal, if not more effort in to launch anything. So at any given time you are creating two campaigns with two different objectives because you, they’re not always they come in with their own priorities. So you always have to think at a bakery level for an individual franchisee, what’s in it, what’s in it for them and what’s their benefit. How am I going to sell it? So the proposition has to be thought out and you do anything that you roll out. It has to be done for two sets of stakeholders. So it adds a lot of complexity and they’ve got their opinion.
Like I said they are individual business, independent business owners. So they have their own priorities and they know what’s best for themselves, even though they’re part of a franchise network. So it does, yeah, it does make it challenging, but also it, it adds to our day to day.
Paula: Yeah. You know, it it kind of blows my mind and, you know, part of me sitting here wishing I could be a fly on the wall at some of those meetings, Lucila, because like the education, the feedback and what I really feel is like, it kind of keeps you on it.
You know, because it’s one thing for, again, a business that has full control and decision making power over its marketing activities and what it decides to invest in. And sometimes a brand might invest in a loyalty program for other reasons. Maybe it just has to be done for, you know, competitive reasons or for example, but when there are those you know, hundreds of decision makers involved and you have to convince them, I think that’s a really important distinction that, as you said, it’s a different campaign, a different set of stakeholders, almost like you’ve got double the workload just to make sure that everybody gets that win experience.
Lucila: Yeah. A hundred percent. And like you said, it does keep you honest. Absolutely. Yeah.
Paula: Amazing.
Lucila: You get live, as you go, feedback.
Paula: Totally. And I’m sure they’re not shy and nor should they be. Again, it is their business. So yeah, I’ve only once ever attended a brands franchise meeting and again, the depth of expertise, the insights and the critical nature of it being the right decision.
Like there was just nothing would get past these, you know, intelligent business owners whose livelihood was at stake. So, so it just made for a very rich conversation actually. And again, things like simplicity coming through as a core value, I think is probably a result of having those stakeholders, I guess, you know, keeping you honest, as we said, that’s amazing.
Lucila: Yeah. And even building, how we continue and try to demonstrate the value of the proposition. We strive to provide franchisees having for them to have a profitable business. So I’m coming in and saying for every 55 dollars that someone spends, you have to give five because they’re the ones funding the voucher. So you really have to do your business case and work on why the proposition is a good thing.
Paula: Yeah, for them. Absolutely. Yeah. And I’m sure it’s incredibly compelling and clearly the the judges, as we said, for the the awards thought so too. So, so talk to us a bit then Lucila about KPIs. What do you you know, obsess over? What do you focus on in terms of your overall proposition, maybe day to day or quarterly, I’d love to get a sense of what it is that you are keeping most attention on.
Lucila: Our key KPI for the program is scan rate. So the expectation for us is that at a minimum level, one in three transactions is a loyalty transaction.
But we look at overall, we look at it as an average across the network. And In terms of how we set targets for every year, we’ll look at where a bakery is at. And so we don’t have a specific name because that’s something that I’ve just recently created, but some bakeries have got really high scan rate and others sit at the other end of the scale.
The expectation is that we want to increase the average so everyone should be at a certain level. So the ones that are already performing quite high have a smaller growth target for the year, whilst the ones that are underperforming will have a quite a large growth target to get to until to the end of the year for them to meet. So overall, I’m looking at average skin, right? But I do go down to the nitty gritty to the group. So where they sit and trying to engage and talk.
So we’ve got operation operations team who work very closely with their allocated group of bakeries. So generally it tends to sit around particular areas. So we’ll go in, okay, why is this patch here underperforming? And then we try to work through in terms of how we can bring them up to where they should be. So primarily scan rate, but we also have a target for acquisitions. And we are just in the process of launching an NPS for a loyalty program. So that will help us understand how the experience is and how and look at the evolution of it.
And we also look at the redemption of our 5 dollar voucher and have an expectation to where he sits and where he has been over the years to make sure that is consistent. So we make sure that our customers continue to gain and find, get the value that they have been always been.
Paula: Amazing. Thank you for sharing that, Lucila. And particularly the scan rate, you know, I think that’s exactly what this show is designed for, is to share that kind of expertise in terms of like, what does success look like in any particular industry? Because it can be hard to know when you’re launching a program. I’m sure when you joined Baker’s Delight, you probably didn’t have a sense of what the scan rate could be. So thank you for that. And yeah, all of those KPIs make perfect sense, including, of course, making sure the redemptions are actually happening so that people are enjoying the literally the fruits of their their spend. So, very exciting.
And with all of that said, then Lucila, you know, and again, all of the achievements, your team of 12, absolutely amazing, what would you say you’re most proud of, you know, there is so much success. You’ve talked about a million and a half members. We’ve talked about the the top award or the top prize from the Asia Pacific Loyalty Awards, Best Program Launch and Relaunch. So what would you say you’re most proud of?
Lucila: I think you’ve covered them all, but I’ll talk. I think the evolution of the program and bringing it to where it is certainly the head building the team around it and being able to, having a team that looks forward to coming to work and I’m putting words in their mouth, but I do think they generally do, they enjoy coming in and they are committed to what the program offers and they care about our members and we work quite closely with our call center or customer service team. So, we’ll look at every single individual inquiry and I can see that there’s a lot of passion coming from my team when things get escalated to me, I’ve got this particular person. This is happening. How can we solve it? And a lot of the time is related to tech issues or tech limitations.
So building the change. To be where we are and to achieve all those great things that you’ve listed, we’ve basically quadrupled the number of members. We’ve got a lot of insights to go off. We’ve got a very engaged base with, we have won an award, so yeah, there is a lot.
Paula: A lot to be proud of. Yeah.
Lucila: Indeed.
Paula: Indeed. Yes. And dare I ask going forward, Lucila I know off-air, you you mentioned to me that one of the things, again, you’re most proud of is your team. And I know that’s something that you’re keen to keep a focus on and something that I’m hearing actually from a lot of program managers as well, because, you know, even to go back to your earlier point about the managing the stakeholder relationships, like I think so many of us know the principles of loyalty incredibly well.
But actually being successful in a business you know, with things like, you know, the negotiation skills, for example, that you need in order to, you know, whether it’s convinced stakeholders or just know that you’re doing the right thing. Like there’s a lot of work I think still to be done for most of us in terms of like building our teams up to where they can get to.
Lucila: Yeah, I think one element that I try to instill in, in everyone in my team is self awareness and it’s as simple as it sounds. It’s really valuing and being proud of your strengths, but also being aware of your witnesses and not being, not being shy or feeling shame about it. We all have. I’ve got mine. I’ve got things that are work need to work on. And we share that as a team. I make sure I’ve got a planner board where we’ve got all of our KPIs, our individual KPIs and what are the things that we need to work on as a team? So we’ve got a commitment to each other by this date is when we’re going to improve X, and this is how we’re going to get to it.
And I know we all have like structured HR sort of professional development. This is more of a, an informal way of doing it. We’re just talking bullet points. There’s nothing major, but we know, and we what the other person needs to work on and it’s an open book and we all work towards it as a team.
And there’s a constant ongoing conversation on top of them, very big on upscaling every month, we’ve got a different topic that we go through. So I send a survey at the start of the year with a list of, I don’t know 30 top, different topics, the things that people might think it’s relevant, a lot related to loyalty and digital marketing, but also confidence and some of those behavioral skills and everyone will write where they sit. And then within that, it creates a prioritization of the areas that we are going to focus on for the year.
So every month we have a different topic that we focus on, and we’ve got a leader side so it’s not all on me. So the team takes turns in terms of who the leader is. And it might be, they bring in a resource. So I said, if they’ve got budget, if they need to pay for someone, or is it a course? Is it an online thing? Or is it us going somewhere and attending a conference this month?
We’re talking UI design. So we’ve got a team member’s partner who is a UX and UI designer coming in to do a present a two hour presentation for the entire team, which is yeah, very exciting. All of that happened. Everyone wants to be part of it and wants to take a turn leading and picking the topic and picking what to put forward to the team.
Paula: That is absolutely amazing. Actually, I don’t think I’ve had that chance. incredible insight, Lucila, from anyone on the show. I’m sure it’s happening elsewhere, but I like, I suppose, two particular things you mentioned there. First of all, giving the team the opportunity to choose the topics where they feel that they need the support.
So I think that’s, you know, an essential principle when I think about training overall, actually, and even myself as well, you know, you kind of have to be interested in it and know how it’s going to drive the everyday results. But then the opportunity to lead it so that you’re not just giving yourself more work. I mean, that’s amazing.
Lucila: Yeah. Everyone chips in, which is great. Yeah.
Paula: Incredible. Incredible. Yeah.
Lucila: Yeah. Given them the opportunity to step up and giving people trust, I find that it’s a key trait of a good leader, of letting the team take ownership beyond the upscaling of their day to day and having very clearly defined roles and responsibilities. And setting the expectations of where the boundary sit, and I found that having that quite clearly stipulated freeze me up as a leader, because I’m not constantly being asked questions. They know what they need to do. And also it empowers the team because they know what, where the boundary is. They know where the standards sit, so it’s with them and we’ll develop processes for certain things to make sure that things don’t fall through the cracks and they’re following the required processes when needed, but also they’ve got lots of freedom to do what they want and within a reason.
Paula: Yeah. And again, what I’m hearing is, you know, I can just imagine how culturally that means that the team will always remain, you know, fully engaged in the business.
And with the view to being their best self because, you know, I think, you know, we’ve all probably seen businesses where sometimes, you know, that the team get disengaged or disillusioned or, you know, they just don’t put the same kind of effort and commitment into running the business or doing their role.
But if you are constantly showing them what that excellence looks like, then there’s just no way that can ever happen because it just wouldn’t survive. They wouldn’t survive in the role if they didn’t have that same attitude to excellence that you’re cultivating.
Lucila: Yeah. No one wants to be constantly told what they need to do. They want to think for themselves. They want to understand the big picture and the why, and they want to be able to contribute towards it from themselves with their own thinking.
Paula: Wonderful. Wonderful. Well, listen, that’s been incredibly insightful. Anything program wise or industry wise that you wanted to share that you’re thinking about?
I mean, again, we were both at the incredible ALA conference last week, so I was loving, you know, for example, insights around the psychology of loyalty. I got to do a panel interview, for example talking about paid loyalty, which you’ve obviously referred to on your cycling program, but is there anything else that you think you kind of really are aware of? Maybe, you know, whether it’s AI, of course, that’s usual hot topic. What are you thinking about most in terms of the future roadmap?
Lucila: I’m not, well, you touched on the, about the conference and it took me back to one of the presentations that we saw where it was around sustainability and businesses there are committed to the community and how the intent is there from a member perspective. How it so the question was whether it drives engagement and ultimately sales and people write it really highly. But when it comes to the execution is actually they put themselves first.
I thought there was really interesting because a lot of the time, we do surveys, UNA studies, and many qualitative, quantitative work and it’s, and when it comes to the action, it might be a different thing. So I think just something for me was such an eye opener because you’re asking them and they’re giving you an answer, but when it comes to taking an action, it’s a completely different thing.
So it made me think when I’m running, looking at the data and running the way that we run research is just to make sure that we’re also comparing to the data that we have to see whether it proves to be true or not.
Paula: Yeah. Yeah. That was an amazing one. You’re absolutely right. And again, in the show notes, I’ll make sure that we link to the presenter Cristina Ziliani from the Loyalty Observatory in Italy did that presentation and again, we’ll make sure to the link to the Australian Loyalty Association who invited her to make sure that anything that’s available from their side is also shared because it was brilliant. And again, there was a lot of nuance around sustainability as a hot topic and what does work. As you said, people say what they want and in reality, they behave sometimes quite differently.
So lots of learnings there, Lucila, I have to say, I love what you’re doing. Again, from the simplicity of the brand name, the Dough Getters program to to the incredible growth and sales penetration that you’ve managed to cultivate. And as I said, most importantly, the leadership that you’re showing in terms of bringing your team on that journey to make sure that everybody’s aligned with with growing the business for the franchisees and obviously the overall brand.
So I don’t have any other questions from my side, Lucila. Is there anything else that you wanted to mention before we wrap up?
Lucila: No, that is all. Thank you for having me.
Paula: Incredible. Well, I hope it’s not the only time. Please God, you will join us back again on both Let’s Talk Loyalty and Loyalty TV.
So with that said, Lucila Braga from Baker’s Delight. Thank you so much from Let’s Talk Loyalty and Loyalty TV.
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