marketo benchmark-on-email-marketing

Benchmark Survey: Marketo Benchmark on Email MarketingCustom Report For: Nuno Coelho

Dear Nuno Coelho,

Email marketing remains one of highest rated marketing tactics, even as social, mobile, video etc. transformthe marketer's landscape. But how does your Email Marketing measure up? What are the best practicesused by today’s top performers? What are you currently doing that you should improve, and what are you notdoing that you should start?

Get the answers now -- here are your personalized benchmarks and recommendations.

About this report The Marketo Benchmark on Email Marketing combines Marketo's thought leadership and years ofexperience gathered from 1,000s of customers with ongoing research into the practices of today’s topperformers in email marketing.

In this personalized report, results from C.M.G are presented alongside industry averages and results fromTop Performers – those companies with the fastest revenue growth, the highest email performance metrics,and the best use of email marketing to achieve those revenue goals.

The report includes information and recommendations about:

Top uses and challenges for email marketingThe prevalence and ROI impact of various tactics including testing, drip marketing, and social sharingEmail sending frequency and volume by type of campaignCommon practices in privacy and email deliverabilityBudgets and resources required for email marketingand more...

The results offer you a fast and simple way to evaluate your current tactics and consider where C.M.G maylook to improve performance.

The insights to drive more revenue with less work At Marketo, we thrive on sharing best practices, educating marketers, and helping companies of all sizes toimprove their revenue performance. Please contact us if you would like to learn more about how we can helpC.M.G expand lead flow, improve sales effectiveness, and optimize marketing and sales investments.

Also, if you find this report useful, please encourage others to fill out the Benchmark Survey – the results getbetter and better each time someone fills it out.

Here's to your best,

Jon MillerVP of Marketing, [email protected]

mailto:[email protected]

Email Marketing Goals and ChallengesCompanies use email marketing for everything from education to building brands to driving revenue. However,satisfaction with email marketing tends to lag its importance - perhaps because of ongoing challenges withgetting noticed in the inbox, measuring results, and managing campaign complexity.

Rank your top goals for Email Marketing You Average

#1 Website traffic Lead generation#2 Lead generation Online sales#3 Education Offline sales#4 Website traffic#5 Branding and awareness#6 Education

Rank your top challenges with Email Marketing You Average

#1 Building and managing campaigns Click through rates#2 Measurement Inbox overload#3 Incorporating social sharing Deliverability#4 Building and managing campaigns#5 Budget/resources restrictions#6 Measurement#7 Incorporating social sharing

© 2011 Marketo, Inc. | +1.877.260.MKTO (6586) | www.marketo.com | www.twitter.com/marketo | www.marketo.com/blog 1

Email Marketing Goals and Challenges

Not surprisingly, Top Performers are more satisfied with their email marketing results than the average surveyparticipant. This is because they are seeing the efforts of their best practices pay off in tangible results thatsupport revenue growth.

In the tips sections that follow, you'll learn best practices to raise your performance and create an emailmarketing strategy that engages your prospects, converts customers, and increases marketing ROI.


YouAverageTop Performer

Importance

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Capabilities and ImpactToday, there are more email marketing solutions, tools and tactics available to marketers. Which work bestfor you? Which ones are most used by top performers? Do your Email Marketing capabilities increaseyour Marketing ROI?

TestingAn effective email testing strategy can help increase open, click, and conversion rates by improving therelevance of your marketing messages. You can test subject lines, copy, graphics, calls to action, frequency,timing, and more.

As a Top Performer in this category, your email testing techniques enhance your email marketing, and you plan tocontinue fine-tuning your tactics even more. Keep it up' Here are some suggestions for continuing to see value in thisarea:

Start simple by testing subject lines and headers. It doesn’t take a lot of time or creative work to create simplevariants here, but the return can be significant.Test one element at a time, so you can actually measure the impact of the variance.Consider the time of day as well as the day of the week when testing your email campaigns.Keep a log of all your tests so you can refer back to the specific variables that were tested – and more importantlywhat you learned.Don't forget that small differences can be significant if your sample sizes are large. Here’s a post with moreinformation about testing statistics: The Ultimate Guide to Test Statistics at www.marketo.com/bem-teststats.See sample test results in this blog post: The Secret to Email Marketing Success: Testing atwww.marketo.com/bem-testingRun tests on groups that are small but large enough to determine a clear winner. Then incorporate the winningvariables into your larger mailing.



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Dynamic ContentAlthough less popular than basic testing, dynamic content can increase email relevance by customizingemails based on various customer or prospect attributes. For example, emails sent to customers inManufacturing would include different copy and images than those sent to customers in the FinancialServices industry.

You see the direct connection between your use of Dynamic Content and bottom line results. Here are waysto increase the value your Dynamic Content delivers even more:

Develop buyer and customer personas and align them with the content in any email message.Don't customize for the sake of customization - focus on varying the content that your personas willmost care about.Work on your data quality to ensure that the fields you use to customize messages are accurate.Plan ahead of time, since creating dynamic content requires more creative and testing.Review all versions created by dynamic content before sending to ensure there aren't mistakes.Consider customizing based not on demographic and firmographic information (such as industry), buton behavioral information as well: email click activity, website behaviors, revenue cycle stage, leadscore, etc. This can be even more important for improving the relevance of your emails.



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SegmentationSegmentation is the ability to target exactly the right message to the right customers at the right time. Emailcampaign results tend to improve when targeting fine-tuned audiences. That’s why the best segmentationsolutions combine demographic and firmographic attributes with behavioral and online data.

You don't segment your emails as frequently as other marketers and don't enjoy as much ROI as a result.Consider improving the strategic value of your email marketing with more effective segmentation:

Segment your audience based on demographic and firmographic attributes such as industry and title.Even more importantly, segment based on where the prospect is in the buying cycle: early-stage, mid-stage, late-stage, or customer. Prospects that are actively engaged with sales should get differentmessage from those you are trying to develop.Consider segmenting your audience based on how frequently they interact with your messages (opensand clicks). This can help you know how often to send.Evaluate your lead database and create segments based on lead source or profile information for yourmarketing campaigns.Try more advanced ways to segment your email lists by combining demographic information withbehavioral data. Knowing what web pages the prospect has visited, what content they've read – evenwhat they’ve said on social sites - can help you to send them the right message at the right time.Also consider a subscription center where your audience can subscribe to different topics andfrequency of communications.



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Drip Marketing / Lead NurturingLead nurturing is the practice of keeping in touch with prospective qualified customers regardless of theirtiming to buy. Done right, it can result in 50% more sales qualified leads at 33% lower cost. Although leadnurturing often consists of interactions over many channels, many companies will incorporate drip emailmarketing into their nurturing strategy.

You don't use drip campaigns often nor consider them to be very valuable. However, on average all surveyrespondents indicated drip campaigns can impact their ROI. Here are some ways you can do the same:

Create a normal and an accelerated nurturing program. Allow leads to choose which path they willparticipate in or use online behavior to determine if a prospect should be moved to the acceleratednurturing path.Test the order the prospect receives the messages you are sending.Each email in your nurturing program needs to be updated and improved on a regular basis.Stay ahead of the drip, adding to your nurture campaigns before your prospects or customersconsume all your nurture content.Check out the Marketo Definitive Guide to Lead Nurturing at www.marketo.com/bem-nurture



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Triggered EmailsIndividual customers receive triggered emails when they demonstrate specific behaviors (or lack thereof).For example, if a prospect visited your pricing page but didn’t fill out a contact form, then a triggered emailcould invite him to a weekly event to learn more. According to some studies, the effective use of triggeredemails can improve open rates by over 50% and conversion rates by more than 350%.

You rarely use Triggered emails, and therefore rarely see many results. Top Performers report higher ROIthan you do, so here are some suggestions to improve the value of your Triggered emails:

Automate send processes for repetitive emails (for example, event confirmations).Utilize triggered emails to notify key stakeholders when key actions occur.Listen to the way your segment responds and ensure your follow up is as relevant as possible.Trigger follow-up campaigns based on social media interactions.



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Include Social SharingEven as social media marketing increases in importance, email marketing is here to stay. In fact, leadingemail marketers augment their email strategies by embedding social sharing capabilities in their emails. Suchlinks enable customers and prospects to amplify your message to their social networks.

You are using Social Sharing and seeing the results. Here are some suggestions for continuing to increasevalue received:

Include share, Facebook, LinkedIn and other sharing options in your email. Make sure these arecustomized to the landing page and not put in email. Find out how in this blog post atwww.marketo.com/bem-share-directions.Don't confuse follow us buttons with social sharing buttons.Thank those that share your content in social media to encourage this behavior.Track referral traffic from sharing activity.



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Text Emails from a Sales RepIn the B2B industry, emails sent via individual sales rep email addresses perform far better than traditionalmarketing emails. Such campaigns deliver improved engagement rates because they leverage the power ofthe "human touch" and begin building a relationship between the sales rep and the prospect.

You rarely use Text emails from a Sales rep and are not seeing the results. Top Performers report higherROI, here are some suggestions to get more value:

Create personalized email templates for the sales team and experiment with different calls to action(download offer vs. follow-up call vs. scheduling a meeting).Make it easy for sales reps to send emails that will track engagement by the recipient.



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Custom Landing Pages from an EmailThe landing page is an essential part of many email marketing campaigns. By directing clicks to a landingpage customized for a specific email rather than a generic home page, marketers can significantly improvetheir conversion rates.

You are using Custom Landing Pages but are seeing less value than average and Top Performers. Considerthese tips to increase your ROI:

Build landing page templates to make landing page creation easy to implement.Optimize your landing pages to ensure the best results. Not sure where to get started? These landingpages should be optimized first:

Lowest conversion landing pagesHigh bounce rate landing pagesHigh exit rate landing pagesLowest time spent landing pagesKey pages (i.e., contact us, top offers)

Ensure email reader knows what content they will receive upon clicking on a link.



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Email Volume and FrequencyWhat is the size of your total list / database?

You indicated C.M.G has a database with 5,001 - 25,000 contacts. Here's how this compares.

What percent of your list do you consider inactive?A key indicator of a healthy email marketing program is the level of audience engagement. You indicated that10 - 25% of your list is inactive. Here's how this compares.

Rather than sending the same campaigns to inactive prospects, it often makes sense to run specificreactivation campaigns to attempt to "wake the dead". This is a great place to test and experiment - youcan't "kill them again".


Under 5,0

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Frequency of CommunicationsPlease estimate how often an individual in your database typically receives variouscommunications.One of the most common questions marketers ask is "How often should I email my contacts?" The standardexpert answers to this question are "it depends" or "test to find out". Although true, this advice is not asactionable as marketers might like. Fortunately, the Marketo Benchmark on Email Marketing can tell youwhat other companies are doing - including the Top Performers.

Type of Email FrequencyProduct and Service Promotions Two Times Per MonthNewsletters Two Times Per MonthAutomated Nurturing Emails OccasionallyEvent Promotion Two Times Per Month


Execution MetricsWhat is your average email open rate?

While Open Rate is widely known as an imprecise metric, it nonetheless provides a baseline for trending andcan be of value to measure subject lines, monitor inbox delivery, and understand engagement. You indicatedC.M.G has an email open rate of 21 - 25%.

Average Top Performers11 - 15% 16 - 20%

Congratulations, your open rate is higher than the industry average. Check out these suggestions to see ifyou can improve your open rates even further. These include:

Use a consistent "From" label that recipients learn to trust. This can be a person from your company,your company brand name, or a combination such as Jon Miller, Marketo.Ensure your recipients know who you are and why you are emailing them. If they don't know who youare, they are much less likely to read your message. Following the best practice for opt-in can make abig difference here.Test subject lines rigorously. This is perhaps the single most important item to test to improve emailmarketing success.Find the time of day and day of week that works best. Although Tuesday to Thursday is oftenconsidered to be the best performing days, some companies are finding their best open rates foremails sent over the weekend. In some cases, not following the same best practice that everyone elsefollows can help you stand out!Manage your list and remove contacts that have not opened your emails in the last six months. This canalso help your email deliverability rates.Don't mail too often. If you send too many emails, your list may start to feel fatigued and will stopopening your messages.

What is your average email click through rate (clicked / delivered)?

The click rate is the fraction of all delivered emails that get clicked on. The more people that are clicking youremails, the more they are engaging with your brand and content. A high click rate shows that your emails arecausing your intend audience to respond. You indicated C.M.G has an email click through rate of 10.1 -15.0% .

Average Top Performers2.1 - 5.0% 5.1 - 10.0%

Your prospects and customers are showing good engagement with your emails. Take your results to the nextlevel with the suggestions that follow.


What is your average email click to open rate (clicked / opened)?

The click to open rate focuses on how well recipients interact with your emails once they are opened. Itfocuses on the call to action and email design / copy more than the subject and from address (though thosecan matter as well). You indicated C.M.G has an email click to open rate of Don't know.

Average Top Performers11 - 15% 16 - 20%

You indicated that you don't know your click to open rate. Regardless, here are some ways to increase thelikelihood that recipients will click your emails:

Have a clear call to action. Tell the recipient what you want them to do in plain language.Use multiple links for the same call to action – in the image, in a button, and in the copy (multiple times,each with different anchor text). Having more links has been shown to improve click rates.Create scarcity. A recipient is more likely to click if they feel your offer has a limited quantity or timeavailable. You want them to think they are missing out if they don’t click and take action.Test, test, test! If you can’t think of anything else, try changing the color of your call to action button.

What is your average unsubscribe rate?

Unsubscribes happen even to the best email marketers; the key is to keep them as low as possible byhaving engaging content and the right permission marketing practices. Top performers consistently see lowerthan average unsubscribe rates. You indicated C.M.G has an email unsubscribe rate of Don't know.

Average Top Performers0.11% – 0.2% 0.06% – 0.10%

You indicated that you don't know your unsubscribe rate. Regardless, use these tips to improve performancehere:

First and foremost, only send your emails to recipients who have agreed to receive offers from yourorganization. This is a no-brainer.Send offers or newsletters at least once per month so your recipients are used to receiving your emailand you don't lose touch.Only email the content your recipients requested. Over-mailing your customers can result in list fatigue,which can in turn lead to an increased unsubscribe rate.Most importantly, provide value in your messages. Be the trusted authority on a certain subject,continually offer great deals to your customers, and announce exciting news or updated productinformation.


What is your average bounce rate range?

Bounce rate is an important indicator of the quality and health of your email marketing list. Even if an addresswas good when it came into your system, people often change their email addresses - requiring a solidprocess to keep the list clean. A high bounce rate can also hurt your email deliverability since many ISPsconsider senders with high bounce rates as less trustworthy. You indicated C.M.G has an email bounce rateof Don't know.

Average Top Performers2.1 - 5% <= 2%

You indicated that you don't know your bounce rate. Begin by tracking this metric, and then use thesetechniques you can to improve the health of your list:

Automatically remove recipients who bounce from your mailing list for future sends, but be sure toprocess soft bounces such as "out of office" messages differently.Provide a way for recipients to update their email address.Consider calling or direct mailing high-value prospects whose email addresses bounce to let them knowand get a correct email address.

What is your average conversion rate from known name to Marketing Qualified Lead?

Measuring how the prospect engages and then moves through the sales cycle from Marketing Qualified toSales Qualified to Opportunity and ultimately Close Won is critical to understanding the effectiveness of allyour Marketing programs. You indicated C.M.G has a conversion rate from known name to MarketingQualified Lead of < 5%.

Average Top Performers5.1 – 10% 5.1 – 10%

Powerful and easy solutions such as Marketo's Revenue Cycle Analytics make it easy to measure, track, andimprove your MQL conversion rate. Here are suggestions to align sales and marketing for the most impact:

Have the sales team re-think their traditional sales strategies - instead of having them actively talk and"sell" your products or services, encourage them to listen more to prospect needs and behaviors.Establish lead scoring thresholds to identify when leads should be passed on to sales and when theyshould be returned to marketing for further nurturing.Coordinate marketing and sales when identifying "interesting" behaviors that indicate hotter leads andestablish sales alerts based on these behaviors.Make it easy for sales to sort leads by priority in the CRM system, enabling them to focus on the mostsales-ready leads.Enable salespeople to view the companies in their specific territories that visit your website and toaccess the important contacts at each organization within the CRM system.


Email DeliverabilityDeliverability remains one of most important factors in successful email marketing - if your messages don’thit the inbox, they can't drive the results you seek. Many marketers find the topic intimidating because it isinfluenced by so many variables - variables than can't be condensed into a single metric or score.

In the end, successful email deliverability is a shared responsibility between the sender and the email serviceprovider. You should ensure your provider uses the latest email technology compliant with today's currentrequirements. See how Marketo does it at www.marketo.com/bem-deliverability.

At the same time, senders directly affect their own email deliverability. Senders with long-term deliverabilitykeep clean lists and follow email opt-in best practices, such as refusing to purchase email lists. They alsocreate carefully targeted messages that are relevant and trusted by their subscribers.

Learn more about email deliverability best practices at Marketo’s Email Deliverability Resource Center atwww.marketo.com/bem-deliver-resources.

What opt-in method do you use?

You said C.M.G uses Double opt-in. Here's how that compares.



Single opt-inDouble opt-in

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How much do you agree or disagree with this statement: My audience trusts my emails.

Trust is a critical component of email success. If your audience trusts your emails, they are more likely toopen them, less likely to unsubscribe, and are much less likely to mark your messages as spam.

My Email is Trusted% Agree / Strongly Agree Unsubscribe % Bounce %

Average 54% 0.11% – 0.2% 2.1 - 5%Top Performers 100% 0.06% – 0.10% <= 2%You Agree Don't know Don't know

Top Performers report a higher level of trust and a lower unsubscribe rate than the average.

You indicated that C.M.G generates contacts for email marketing via Forms on my website and Referralsand word of mouth. Here is how this compares.

It's great to see that you are primarily using high-quality methods of acquiring contacts for email marketing.This can help improve your email deliverability and increase how much recipients trust your messages.



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Email Technology

What is your primary method of managing your Email Marketing?

You said C.M.G uses In house as your primary method of managing Email Marketing. Here's how thatcompares.

What CRM solution does your organization use?

You said C.M.G uses Oracle/Siebel for your CRM solution. Here's how that compares.



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Resources

How effective are you at making the most of your time and financial resources to optimize your emailmarketing? What are you doing to strategically improve your results and deliver incremental ROI?

How many employees in your organization help execute Email Marketing programs?

C.M.G has 11 - 20 employees involved with email marketing. Here's how that compares.

How much of your team's time is spent on Email Marketing?

Here's how your team spends their time, compared to their peers.

Your Time Average Top PerformersHours Per Month 50 62 123Creative (design and copy) 10% 23% 20%Segmentation and targeting 5% 12% 13%Strategy 25% 14% 22%Email layout and processing 20% 18% 17%Reporting 15% 10% 13%Content creation 25% 23% 16%



12 - 5

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How much do you spend on Email Marketing per month (in US dollars)?C.M.G spends None per month ($USD) on email marketing. Here's how that compares.

You indicated that C.M.G does not send emails regularly outside of your local region. Here’s how thatcompares:



< $1,000

$1,001 -

$5,000

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Yes No Don't Know0

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Summary and Best PracticesTop Tips to Improve Your Email Marketing

1. Group your target customers. Use demographic information or BANT characteristics to segmentyour audience. Develop profiles for each of your target audience groups.

2. Customize content for your unique buyer personas. Craft multiple email messages for each profile.Dynamic content will ensure each email delivers information that engages your prospects and cansignificantly improve your effectiveness levels.

3. Standardize your send information and email style. Increase the likelihood that email recipientsrecognize your email by using a consistent “from name” and corresponding email address. Also,standardize your branded emails with one shared style, so each email feels familiar.

4. Test for the best. Optimize your emails with testing to find the right subject lines, images, and contentfor your buyer personas. By creating personalized email templates for your sales team, you canexperiment with different calls to action, such as download offers, follow-up calls, or scheduling ameeting.

5. Deliver a straightforward call to action. Each email should communicate one clear call to action.Otherwise, email recipients can become overwhelmed. However, it is advisable to repeat the call toaction multiple times.

6. Develop trust with opt-in functionality. Go beyond following CAN-SPAM rules to ensure everyrecipient has opted-in to your email.

7. Identify the best time to send. Consider the time of the day as well as the day of the week whenexecuting your email campaigns.

8. Ensure deliverability by proofing campaign content in different email readers and troubleshootingcontent that may activate spam filters.

9. Optimize your email list segmentation with more advanced tactics that combine user demographicswith online behavioral data.

10. Implement improvements with automation. Take your efforts up a level by exploring more complexautomated email workflows for lead nurturing, such as triggers that send out emails based on leadscore.

11. Speed up your sales cycle by creating content for every stage. Develop standard emails thatcommunicate your key messages throughout all stages of your buying process. These take the form ofeverything from educational emails vs. solution-oriented emails.

12. Schedule maintenance. Set aside time for keeping your database up to date and clean with de-duplication, especially after you send emails.


Resources to Learn More

What are you doing to explore new opportunities for improving your email marketing? Do you set aside timeto sit down and learn from others, or do you mostly go it alone on an ad hoc basis?

With these online resources, you can access best practices from multiple industries and develop action-oriented plans for email campaigns that deliver the results your business needs.

Marketo Email Marketing Resource CenterB2B Email Marketing Success KitMarketo Email Marketing: Thinking Outside the InboxEmail Deliverability Design and Creative ChecklistEmail Deliverability Cheat SheetMarketo Email Deliverability TechnologyMarketo Email and Anti-Spam Policy

View all these resources at www.marketo.com/bem-resources.

Marketo Email Marketing

With Marketo's email marketing software, you can:

Customize and automate triggered and multi-step email campaigns that incrementally deepen yourprospect relationships and convert customers over timeConsistently deliver content that catches customers using the latest email deliverability technologyDesign professional emails with our WYSIWYG editor templates, or import your own HTMLImprove your open rates by sending personalized messages on behalf of sales reps; track who opensand clicks on each emailFine-tune your email marketing to engage more targeted audiences with reporting and A/B testing


Don't Just Email Prospects - Engage Them in a Dialogue

The days of batch email marketing campaigns with low response rates are over. It's time to use targetedemail marketing with 1:1 dialogue marketing capabilities. These include drip campaigns with automated leadnurturing and the ability to trigger follow-up activities. For example, imagine being able to send a campaignand then automatically send a personal reminder a week later if the prospect did not open the firstcommunication. By segmenting and targeting prospects based on specific behaviors, such as whether theprospect opened a prior email or visited a specific webpage, marketers can increase open rates by morethan 50% and increase conversion rates by more than 350% (Jupiter Research)'

With powerful yet easy B2B email marketing software from Marketo, B2B marketers can create, execute,and measure sophisticated email dialogue campaigns with a simple drag and drop user interface.


mailto:[email protected]

http://www.marketo.com/

Dramatic Improvement in Prospect Relationships

How much more effective could your B2B email marketing be if you had the ability to manage relevant andpersonalized dialogues with each and every prospect?

Increase lead conversion: Convert 400% more prospects into sales ready leadsBoost response rates: Raise open and click rates by segmenting lists and sending customersmessages specific to their profile, interests, and actionsBe more creative and strategic: Automate repetitive manual execution and analytics so you can focuson creativity and strategy

Here’s how you can learn more or schedule your personalized demo of Marketo

Visit www.marketo.comCall us at +1.877.260.MKTO (6586)Email us at [email protected]


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