{"id":25984,"date":"2018-07-25T14:31:32","date_gmt":"2018-07-25T14:31:32","guid":{"rendered":"https:\/\/mention.com\/blog\/?p=15265"},"modified":"2025-01-10T10:18:49","modified_gmt":"2025-01-10T10:18:49","slug":"customer-retention-strategies","status":"publish","type":"post","link":"https:\/\/mention.com\/en\/blog\/customer-retention-strategies\/","title":{"rendered":"10 Effective Customer Retention Strategies for Increased Brand Loyalty"},"content":{"rendered":"<p>Customer acquisition remains one of the primary goals of any business, whether they\u2019re a startup or an established enterprise. According to the latest State of Inbound report, the number one priority shared by inbound marketers across the globe is converting leads into paying customers. <img decoding=\"async\" class=\"alignnone wp-image-15258 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image4.png\" alt=\"customer retention strategies state of inbound\" width=\"916\" height=\"529\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 916px; --smush-placeholder-aspect-ratio: 916\/529;\" \/> <em>Source: <\/em><em><a href=\"http:\/\/www.stateofinbound.com\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">State of Inbound<\/a><\/em> Another study shows <a href=\"https:\/\/neilpatel.com\/blog\/retaining-customers\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">60% of B2B businesses<\/a>\u00a0allocate most of their marketing budget towards getting new customers. Focusing towards acquiring new customers is understandable \u2014 even expected \u2014 particularly for startups. After all, without these new customers coming to your website making purchases, you won\u2019t start generating revenue. However, <strong>the inbound marketing methodology model\u00a0doesn&#8217;t end with closing the deal or making that sale<\/strong>. There&#8217;s one more part to the equation: delighting the customer. <img decoding=\"async\" class=\"alignnone wp-image-15262 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image3.png\" alt=\"inbound methodology customer retention\" width=\"1021\" height=\"545\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1021px; --smush-placeholder-aspect-ratio: 1021\/545;\" \/> <em>Source: <\/em><em><a href=\"https:\/\/www.hubspot.com\/hs-fs\/hub\/53\/file-296852955-png\/methodology\/methodology.png?t=1512386855904&amp;width=1128&amp;name=methodology.png\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">HubSpot<\/a><\/em> Sadly, this is the step that many businesses tend to forget\u00a0since they tend to focus their marketing efforts to close new customers. Smart business owners know that this part is perhaps one of the most critical stages of the inbound marketing program. That&#8217;s because this is the stage where the focus shifts from customer acquisition to customer retention.<\/p>\n<p><!--HubSpot Call-to-Action Code --><\/p>\n<p><span id=\"hs-cta-wrapper-b238606f-22a4-4a8d-b364-58defc2464bc\" class=\"hs-cta-wrapper\"><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(1896803, 'b238606f-22a4-4a8d-b364-58defc2464bc', {}); <\/script><\/span><\/p>\n<p><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2>Why is customer retention important?<\/h2>\n<p>Believe it or not, keeping customers loyal to your brand after their initial purchase is more profitable for your startup. For starters, <strong>you spend fewer resources <\/strong>keeping customers. According to the Harvard Business Review, customer acquisition costs anywhere between <a href=\"https:\/\/hbr.org\/2014\/10\/the-value-of-keeping-the-right-customers\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">5 and 25 times more<\/a>\u00a0than customer retention. A <a href=\"https:\/\/www.gartner.com\/binaries\/content\/assets\/events\/keywords\/digital-marketing\/gml4\/gml4-cmo-spend-survey.pdf\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">report recently published by Gartner<\/a>\u00a0supports this statement, pointing out that businesses need to invest in more resources to convince a prospect to become a customer. This makes sense because customers are now bombarded with content\u00a0that they\u2019ve now learned to become skeptical towards the content they consume online. This is the reason why <strong>the average conversion rate for new customers ranges between 1% and 3%<\/strong>. <img decoding=\"async\" class=\"alignnone wp-image-15260 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image7.png\" alt=\"customer retention smart insights\" width=\"1313\" height=\"630\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1313px; --smush-placeholder-aspect-ratio: 1313\/630;\" \/> <em>Source: <\/em><em><a href=\"https:\/\/www.smartinsights.com\/?attachment_id=118302\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">Smart Insights<\/a><\/em> Once they are convinced, however, it\u2019s <strong>easier to convince them to come back <\/strong>and make a repeat purchase. In an <a href=\"http:\/\/www.marketwired.com\/press-release\/luxury-client-experience-board-reveals-how-successful-sales-teams-turn-first-time-shoppers-2167913.htm\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">article published by MarketWired<\/a>, the chances of converting an existing customer to make a repeat purchase spikes to 60% &#8211; 70%! Not only that, but <strong>repeat customers also purchase 30% more\u00a0<\/strong>than first-time customers. <img decoding=\"async\" class=\"wp-image-15261 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image1.png\" alt=\"image1\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 539px; --smush-placeholder-aspect-ratio: 539\/253;\" \/> Keeping your existing customers happy also <strong>helps you tap into the power of word-of-mouth marketing<\/strong>. Despite the rise of different marketing strategies, <a href=\"http:\/\/www.nielsen.com\/id\/en\/press-room\/2015\/WORD-OF-MOUTH-RECOMMENDATIONS-REMAIN-THE-MOST-CREDIBLE.html\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">word-of-mouth remains the most effective<\/a>\u00a0and economical way to promote your brand and products. That&#8217;s because people are willing to trust recommendations given to them by those that they know. <img decoding=\"async\" class=\"alignnone wp-image-15256 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image8.png\" alt=\"nielsen customer retention strategies\" width=\"1130\" height=\"1142\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1130px; --smush-placeholder-aspect-ratio: 1130\/1142;\" \/> <em>Source: <\/em><em><a href=\"http:\/\/www.nielsen.com\/content\/dam\/nielsenglobal\/apac\/docs\/reports\/2015\/nielsen-global-trust-in-advertising-report-september-2015.pdf\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">Nielsen<\/a><\/em> Now that you see the benefits customer retention can provide, here are 10 different ways on how you can start delighting your customers and boost their loyalty to your brand.<\/p>\n<h2>1. Over-deliver, not over-promise<\/h2>\n<p>Whether or not they admit, many inbound marketers and salespeople tend to get carried away when it comes to delivering your brand and products&#8217; value proposition. This tactic may get your leads to buy into your product, but if your product or service doesn\u2019t live up to their expectations, it could cause more harm than good. Not only will this cause your one-time customers to demand a refund, but <strong>they would also <a href=\"https:\/\/neilpatel.com\/blog\/retaining-customers\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">take their business to your competitors<\/a>.<\/strong> Worse, customers tend to be more aggressive in sharing their negative experience with people in their network. One study shows that <a href=\"https:\/\/www.vendasta.com\/blog\/bad-word-mouth-marketing-spreads-like-wildfire\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">54% of customers<\/a>\u00a0with a negative experience towards a product or service will share this to at least 5 people in their network! Even though you sincerely believe that your product and service is the best thing since sliced bread, keep your promises at a conservative level. Your customers will see anything above these promises as you go the extra mile for them, and they will they appreciate it. It will also further strengthen their loyalty and trust towards your brand and products enough for them to make a repeat purchase.<\/p>\n<h2>2. Be transparent and honest<\/h2>\n<p>According to a survey done by Label Insight, 94% of customers say that they are willing to stay loyal to a brand for as long as that it&#8217;s transparent to them. 39% of customers said that they are eager to switch from their preferred brand to another that offers more transparency towards their customers. <img decoding=\"async\" class=\"alignnone wp-image-15263 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image2.png\" alt=\"transparency customer retention strategies\" width=\"500\" height=\"500\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 500px; --smush-placeholder-aspect-ratio: 500\/500;\" \/> <em>Source: <\/em><em><a href=\"https:\/\/blog.labelinsight.com\/hs-fs\/hubfs\/Images\/TROI_Stats\/shopper_behavior.png?t=1530035311514&amp;width=588&amp;name=shopper_behavior.png\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">Label Insight<\/a><\/em> Of course, that doesn\u2019t mean to say that you need to divulge every single bit of information about your business. What this means is that <strong>your customers want you to be honest and candid about your products and services<\/strong>, particularly when it comes to how they work and their limitations. An excellent example of this is <a href=\"https:\/\/thebestvpn.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">TheBestVPN<\/a>, a website that provides readers with reviews on all the different Virtual Private Network (VPN) providers. On their homepage, visitors will find a link where they can read through the different steps taken when they review each of the VPNs they include in their list. <img decoding=\"async\" class=\"alignnone wp-image-15264 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image9.png\" alt=\"bestvpn customer retention strategies\" width=\"1600\" height=\"911\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1600px; --smush-placeholder-aspect-ratio: 1600\/911;\" \/> By doing this, their visitors are more confident that the reviews and other information they read for a particular VPN are free from any bias. As a result, their visitors can make better purchasing decisions and make them more confident in doing business with them.<\/p>\n<h2>3. Prioritize your customer service<\/h2>\n<p>For many businesses, it\u2019s not their products that make or break them. It\u2019s the quality of customer service that they provide their clients. Every year, businesses in the US <a href=\"https:\/\/www.providesupport.com\/blog\/cost-poor-customer-service\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">lose approximately <\/a><strong><a href=\"https:\/\/www.providesupport.com\/blog\/cost-poor-customer-service\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">$83 billion <\/a><\/strong><a href=\"https:\/\/www.providesupport.com\/blog\/cost-poor-customer-service\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">in revenue<\/a>\u00a0all because they fail to deliver quality support to their existing customers. And it doesn\u2019t end there. 56% of customers dissatisfied with the quality of service and support given to them say that <strong>they refuse to do business with that company again<\/strong>. Another 25% will strongly discourage their family and friends from doing business with you. <img decoding=\"async\" class=\"alignnone wp-image-15259 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image5.png\" alt=\"Provide Support customer retention strategies\" width=\"786\" height=\"625\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 786px; --smush-placeholder-aspect-ratio: 786\/625;\" \/> <em>Source: <\/em><em><a href=\"https:\/\/www.providesupport.com\/blog\/wp-content\/uploads\/2015\/04\/What-Happens-After-Poor-Customer-Experience_21.png\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">Provide Support<\/a><\/em> On the other hand,\u00a0<a href=\"https:\/\/www.getfeedback.com\/blog\/40-stats-churn-customer-satisfaction\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">these are the stats<\/a>\u00a0that businesses enjoy when they take the time to make sure their customers receive quality customer service:<\/p>\n<ul>\n<li>85% of customers will choose to still stay loyal to your brand despite experiencing some form of inconvenience.<\/li>\n<li>73% of your customers will fall in love with your brand.<\/li>\n<li>62% of B2B customers will come back to spend more.<\/li>\n<li>42% of B2C customers will become repeat purchasers and spend more.<\/li>\n<\/ul>\n<p>The key to providing quality customer service to your potential and existing customers is making sure that you <strong>give them the support they need quickly and in a friendly manner<\/strong>. Investing in support system tools like live chat software can significantly improve your brand\u2019s customer service. These ensure that your customers can quickly engage with you and get their concerns and issues resolved in real-time while still giving them the benefit of a one-on-one experience.<\/p>\n<h2>4. Create a customer loyalty program<\/h2>\n<p>Another effective way of improving your brand\u2019s customer retention rate and boost customer loyalty is by having a customer loyalty program. Loyalty programs work in two ways. First, by giving something back in return, you make them feel valuable and that you sincerely appreciate them doing business with you. Second, it encourages them to take action that would benefit your business, depending on which <a href=\"https:\/\/storekit.com\/advice\/6-simple-customer-loyalty-programs\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer loyalty program<\/a>\u00a0you choose to implement. The point system model is the most common. Here, <strong>customers earn points when they make a purchase<\/strong>, answer a survey or refer their friends or family members. This will increase your revenue. At the same time, your customers will help promote your brand and products to other potential clients.<\/p>\n<h2>5. Make your checkout process more convenient<\/h2>\n<p>Did you know that as much as <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2016\/03\/17\/shopping-cart-abandonment\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">81% of people<\/a>\u00a0will not complete an online purchase because of a complicated process? In fact, <strong>most customers would prefer that they go through as few steps as possible<\/strong> to complete their purchase. This is why Amazon remains as one of the preferred online shopping websites today. Its <a href=\"https:\/\/www.amazon.com\/gp\/help\/customer\/display.html?nodeId=468482\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">one-click payment option<\/a>\u00a0let customers quickly and conveniently buy what they want without having to go through so many steps. <a href=\"http:\/\/offers.kevintpayne.com\/blog\/25-tactics-to-increase-your-online-sales\" target=\"_blank\" rel=\"noopener noreferrer\">Offering different payment options<\/a>\u00a0is another solution. Including payment solutions like PayPal, ApplePay, GoogleWallet, and even good old-fashioned Cash-on-Delivery will increase the level of trust your customers have for your business, making them want to keep coming back for more.<\/p>\n<h2>6. Offer discounts to new customers<\/h2>\n<p>Providing your new customers with a discount code that they can use on their next purchase would increase their chances of wanting to come back sooner to buy more items from your business. Discounts can come in the form of percentages or dollar amounts. Give these a try and <strong>look at which ones resonate with your clients<\/strong> the most while still giving your startup a reasonable profit.<\/p>\n<h2>7. Listen to your customers<\/h2>\n<p>I&#8217;ve got news for you: it&#8217;s your customers \u2014 not your marketing team \u2014 that dictates what they would cause them to remain loyal to your business. So, make sure you to listen to what they have to say. In addition to asking them to give you constructive feedback, make sure that you <strong>keep watching for anything they post about your brand and products <a href=\"https:\/\/mention.com\/en\/blog\/social-listening\/\">on social media<\/a><\/strong> or in other parts of the web. Mention\u2019s social media monitoring tool\u00a0is a great choice to invest in for this. It collects meaningful and relevant mentions of your brand, products and services on different Twitter, Instagram, and Facebook on a real-time basis. That way, you can quickly engage new customers, respond to any questions, and even resolve complaints shared by potential and existing customers.<\/p>\n<h2>8. Provide valuable content through email<\/h2>\n<p>Email marketing is one of the pillars of customer retention. In fact, it plays such an important role that, if you don&#8217;t do this correctly, it can cause <a href=\"https:\/\/mention.com\/en\/blog\/retain-customers\/\" target=\"_blank\" rel=\"noopener noreferrer\">23% of your existing customers<\/a>\u00a0to leave. On the other hand, if you send emails with the right content at the right time, it can boost your customer retention, increase conversion rates, and generate more revenue. That was the case Shopify found based on data they gathered during Black Friday and Cyber Monday. On these days, Shopify users found that <a href=\"https:\/\/www.shopify.com.au\/blog\/customer-retention-strategies?rodeo_token=2eb57714-2E85-4207-09DF-61B6B6ECA381\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">emails yielded a 4.29% conversion rate<\/a>. <img decoding=\"async\" class=\"alignnone wp-image-15257 lazyload\" data-src=\"https:\/\/mention.com\/wp-content\/uploads\/2018\/07\/image6.jpg\" alt=\"Shopify customer retention strategies\" width=\"1600\" height=\"1140\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1600px; --smush-placeholder-aspect-ratio: 1600\/1140;\" \/> <em>Source: <\/em><em><a href=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0070\/7032\/files\/email-retention.jpg?v=1523911896\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">Shopify<\/a><\/em> There are several ways to do this. First is by <strong>sending your new customers a thank you email <\/strong>for making their purchase along with some questions on how they are enjoying the product or service they bought. This helps to reinforce their decision to buy from you and makes your brand appear more approachable. Another way is by sending emails <strong>recommending complementary products and services <\/strong>along with customer reviews. This helps boost the value and appeal of these products and services, encouraging your customers to come back and make a repeat purchase. If your offering products that are perishable or consumable, sending out emails with valuable information about your products\u2019 lifespan and friendly reminders to replenish them at the right time will increase your chance of reviving dormant customers, and get them to come back to buy again.<\/p>\n<h2>9. Engage with your customers on social media<\/h2>\n<p>These days, <a href=\"https:\/\/mention.com\/en\/blog\/social-customer-service\/\" target=\"_blank\" rel=\"noopener noreferrer\">social media plays an integral role in helping businesses<\/a>\u00a0build more meaningful relationships with their customers. <a href=\"https:\/\/www.facebook.com\/help\/167970719931213\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">Creating a closed Facebook group<\/a>\u00a0will make them feel more like they&#8217;re part of a close-knit family. It also provides you with a platform where you can further <strong>nurture your customers so that they eventually become not just loyal customers<\/strong>, but even advocates of your brand.<\/p>\n<h2>10. Allocate your efforts wisely<\/h2>\n<p>Not all of your one-time shoppers will become loyal customers regardless of how much effort you put into your customer retention strategy. In fact, only <a href=\"https:\/\/www.garrisoneverest.com\/brand-development-2\/7-ways-to-build-brand-loyalty-through-customer-retention\/\" target=\"_blank\" rel=\"noopener nofollow noreferrer\">20% of your total customers<\/a>\u00a0will convert into loyal, repeat purchasers. That said, make sure that you carefully direct your customer retention efforts towards those customers you observe that keep coming back to buy more from you. Attracting new leads and converting them into paying customers is essential for your startup to begin generating revenue. However, that&#8217;s only the beginning. Once you&#8217;ve developed a client base, you need to allocate resources towards making them stay with you instead of going with your competitors. The different customer retention strategies I\u2019ve shared here won\u2019t make miracles overnight. But with consistency, they can significantly make a difference in boosting customer loyalty for your brand.<\/p>\n<p><!--HubSpot Call-to-Action Code --><\/p>\n<p><span id=\"hs-cta-wrapper-b238606f-22a4-4a8d-b364-58defc2464bc\" class=\"hs-cta-wrapper\"><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(1896803, 'b238606f-22a4-4a8d-b364-58defc2464bc', {}); <\/script><\/span><\/p>\n<p><!-- end HubSpot Call-to-Action Code --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customer acquisition remains one of the primary goals of any business, whether they\u2019re a startup or an established enterprise. According to the latest State of Inbound report, the number one priority shared by inbound marketers across the globe is converting leads into paying customers. Source: State of Inbound Another study shows 60% of B2B businesses\u00a0allocate &hellip; <a href=\"https:\/\/mention.com\/en\/blog\/customer-retention-strategies\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">10 Effective Customer Retention Strategies for Increased Brand Loyalty<\/span><\/a><\/p>\n","protected":false},"author":163,"featured_media":27806,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[315],"tags":[],"class_list":["post-25984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-marketing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10 Customer Retention Strategies for Increased Brand Loyalty<\/title>\n<meta name=\"description\" content=\"Keeping customers should be your brand&#039;s number one goal - above new sales. 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