W H I TE PAPE R BEST PRACTICES: PUBLIC RELATIONS FOR CREDIT UNIONS WHAT IS PUBLIC RELATIONS? What is public relations? Of all the professions in financial services, this may be the most difficult to define. Its ranks include credit union personnel on the vice president level— but the term is also often applied to temps hired to hand out tchotchkes at trade show booths. Today the Public Relations Society of America (PRSA) defines it this way: “Public Relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.” As the organization explains on its website, “This definition focuses on…a communications process, one that is strategic in nature and emphasizing ‘mutually beneficial relationships.’ ‘Process’ is preferable to The profession has been around for a surprisingly long time. It got its start in the early 1900s at the height of the Progressive Era as a corporate means of defensively countering muckraking journalism, and as a means of advocacy for the far-reaching political reforms of the Theodore Roosevelt and Woodrow Wilson administrations. Many credit the first real demonstration of its power during World War I, through the work of George Creel and his Committee on Public Information, which helped mobilize the country to buy war bonds, enlist soldiers and promote relief programs at home. ‘management function,’ which can evoke ideas of control and top-down, one-way communications. ‘Relationships’ relates to public relations’ role in helping to bring together organizations and individuals with their key stakeholders.” Credit unions clearly see the importance of public relations as PRSA defines it. A quick PRSA Member search using the key words “credit unions” finds 80 “practitioners” enrolled in the organization, working full time for credit unions or industry organizations. It became a permanent part of corporate structures during CO-OP Financial Services (www.co-opfs.org) does as well. The the 1920s, pioneered by such figures as Edward J. Bernays, provider of financial technology to credit unions also employs who wrote the first book on the subject in 1923, “Crystalizing a PRSA member (and a former local chapter President at that). Public Opinion.” The company is not only dedicated to providing its credit union clients with products, but with strategic counsel as well, so that they can prosper in a highly competitive financial services marketplace. This white paper is part of that ongoing counseling initiative. BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 1 Having defined our subject first off, this paper will look at some guiding principles of the trade—both strategic and tactical—and then hear from six employees of six diverse credit unions who are in the trenches, hard at work in daily best practice of the art and science of public relations. We will conclude by recommending two resources available to CO-OP credit unions as they endeavor to bring together their institution with their key stakeholders, in the form of LAGGERSHIP (SIC), ENTROPY: Understand the priority and sequence of doing something and also of doing nothing. There are always a variety of options. PRAGMATISM: Clarify, refine and carefully target; deal in facts, truth and reality-based information; and when possible, forecast results that can reasonably be achieved. If strategy and creativity (the tactical exercise of two‑way communications. communication) are different, the latter is also guided by a STRATEGY AND TACTICS: SOME GUIDING PRINCIPLES handful of basic principles. Perhaps the most time-tested of The PRSA definition began by calling public relations “a of their still-authoritative text, “Effective Public Relations.” In strategic communication process.” Strategy is where communications, they call for: all are “The 7 C’s of Communication,” originally formulated in 1952 by Scott M. Cutlip and Allen H. Center, and still a part we should begin. Communications consultant James E. Lukaszewski of New Brighton, Minn.-based The Lukaszewski Group (www.e911.com) writes “Strategy is a mindset, a way of thinking about decision making, work issues, even a wide variety of life-related issues.” He quotes author Michel Robert to further define strategy: “It identifies the key factors that dictate the direction of an organization and is a process that the organization’s management uses to set direction and CREDIBILITY: A climate of belief—built on the performance of the institution. CONTEXT: A communications program must square with the realities of its environment. CONTENT: The message must have meaning for the receiver. articulate their vision.” CLARITY: The message must be put in simple terms. Though public relations professionals have attained the CONTINUITY AND CONSISTENCY: (First of all, note the difference with the first bullet for strategic attributes.) What Cutlip and Center mean here is: Communication is an unending process. Consistent exercise of communication leads to both factual and attitude learning. rank of vice president at credit unions, the number is rather small. Fewer still have a seat at the management table to set organizational direction. To start doing so, Lukaszewski offers some advice on “How to Develop the Mind of a Strategist.” He begins by pointing out “Keep in mind that we’re talking about a management process, not a creative process. Creativity and strategy are different.” He then offers five attributes of a strategic mindset: INCONSISTENCY: Relentlessly question all assumptions. The goal is always a different approach and identifying new options. CONCLUSIVE APPROACHES: Seek the impact of a conclusive result, even though that result may only be one of a series of increments—often not exciting or even very visible. CHANNELS: Established channels should be used. (What about the brave new world of social media? Yes, indeed, because social media qualifies as “channels the receiver uses and respects.” True enough of Millennials—everyone, in fact, it seems by now. As we shall see, social media communication—due to its multidiscipline application—is often outside the direct day-today function of the public relations practitioner.) CAPABILITY OF AUDIENCE: Communications are most effective when they require the least effort on the part of the recipient. SUBSTANTIVE INTENSITY: Focus on the most critical parts of a problem or opportunity through fact-finding, truth seeking and reality testing. BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 2 BEST PRACTICES: THE EXPERIENCE OF SIX CREDIT UNIONS We have a definition of public relations. We have guiding principles as to its strategic and tactical expression. What about the daily grind of its practice? CO-OP Financial Services spoke with credit unions from Alaska to Virginia to learn some best practices from actual experience. One thing that ought to be said right away: You don’t have to be the largest credit union in the world to have a dedicated public relations resource. As a matter of fact, the world’s largest credit union, Navy Federal CU, does have a public “Credit unions,” says Virginia CU’s Birch, “have three distinct advantages in public relations—credibility, structure and focus. We are member-owned, so we are focused on our members’ success. They trust us as advisors. These are tremendous assets. We offer regular financial services for regular people— and this is a great way to carry your story to the media. It is immediately relatable and much easier to get across.” With such public relations advantages at their disposal, some common themes and practices cropped up as our credit unions sought to capitalize. relations staff member. But so does Denali Alaskan FCU, at Organize Like an Agency—Or Hire One about half the total assets under control that an institution Several of the credit unions we spoke to have only one public needs to qualify for “the billionaires club.” relations professional who does “A little bit of everything,” Credit union public relations practitioners who kindly lent their time to this white paper include: Jeanette Mack, Manager, Corporate Communications, Navy Federal CU, Vienna, Virginia ($60.5 billion assets, 5.1 million members) says Emert of ORNL FCU. With limited bandwidth, though, Emert’s main focus is on community and media relations. ORNL FCU does, however, make use of a public relations agency, Ackermann PR of Knoxville, Tennessee. The public relations firm has helped the credit union with the media training of its executives and subject matter experts. Redwood CU is another credit union that makes use of outside public Glenn Birch, Public and Media Relations relations counsel—in their case, a sole proprietor. Director, Virginia CU, Richmond, Virginia ($2.6 billion assets, 237,000 members) Jessica Emert, Director of Community & Public Relations, ORNL FCU, Oak Ridge, One thing that ought to be said right away: You don’t have to be the largest credit union in the world to have a dedicated public relations resource. Tennessee ($1.57 billion assets, 164,000 members) For credit unions with larger staffs or handling the function Clarissa Rodriguez, Assistant Vice President, entirely internally, Fernandez of Denali Alaskan FCU Corporate Communications, Security recommends “setting up the department like an agency— Service FCU, San Antonio, Texas ($8.1 billion with each team member responsible for specific ‘clients.’” assets, 990,200 members) Fernandez himself previously worked at an Anchorage-based Robin McKenzie, Senior Vice President, Marketing & Communications, Redwood CU, Santa Rosa, California ($2.44 billion assets, 240,000 members) public relations firm. In Denali Alaskan FCU’s case, Fernandez has four Marketing Officers who handle distinct public relations tasks, such as their speaker bureau, branch and youth outreach, financial education and community outreach, and digital and social media. Keith Fernandez, Vice President, Corporate Communications and Development, Denali Alaskan FCU, Anchorage, Alaska ($550 million assets, 60,000 members) BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 3 Planning to Ensure Integration Social Media—A Shared Resource The credit unions we spoke to create an annual plan for their public relations, and often draw up detailed plans on In the 21st century social media platforms—Facebook, Twitter, LinkedIn an opportunistic, project-by-project basis. The goal is to and many others—have seemingly leapt into a major ensure that public relations “fits into the overall targets of the communications channel overnight. The degree to which social institution,” says Birch. “Integration is important.” media communications should be under the management of Planning can include setting specific tactical goals, as Redwood CU does. “We create goals for the number of news releases/pitches and track the number of press pick-ups and level of coverage/exposure,” says McKenzie. “We qualify the public relations professional is a matter of debate within the profession broadly speaking. There is no doubt public relations must be integrated into social media communications, just as it must be integrated into all corporate initiatives. our coverage using a simple rating system that allows us to In fact, with most of the credit unions we spoke to, the public differentiate brief mentions from stories where we are more relations professional is not the specific social media director. prominently featured or are the focus of the article.” This seems to be owing to the fact of social media’s usefulness “Public relations does play a major role in our total marketing and business development strategy,” says Rodriguez of Security Service FCU. “The corporate communications, marketing and business development departments all work across many corporate disciplines. As Navy Federal CU’s Mack says, “Social media is a communications channel of value to marketing, corporate communications and community relations, as well as member services.” very closely together. We meet weekly to discuss projects Birch notes, “Depending on the situation, social media and and determine how we can assist each other with current public relations can be very different, though they certainly promotional and community outreach projects and special need to be cooperative. Social media is an excellent tool for events. This helps us maximize our resources.” reaching out to members, particularly in time of emergency.” At ORNL FCU, social media is handled by the credit union’s ROI—Still Tough creative director, though Emert is an active source of content. In spite of careful planning, the credit union practitioners “Social media is a great way to reach a lot of people, and a we spoke to still find a perennial public relations difficulty— lot of different types of people, especially young consumers,” measuring results and return on investment. says Emert. “You do have to be careful not to come across “Measuring social media results is especially hard,” says Emert. “We do, however, track attendance at events we as selling something. As always, we try to provide helpful information on these platforms.” promote. In terms of media coverage, we track the number of placements and compare it to what it would have cost us if we had run an advertisement.” “We track and report monthly what is measureable—news releases, pitches, coverage—and compare year-to-date results with our goals,” says McKenzie. “The bottom line is that at Redwood Credit Union, we take our public relations program Social media is a communications channel of value to marketing, corporate communications and community relations, as well as member services. Jeanette Mack Manager, Corporate Communications Navy Federal CU and efforts seriously, because it is a vital component to building our reputation and trust within the communities we serve—both locally and in the industry. We continue to grow substantially in our markets, and the earned media from our public relations efforts has been an important contributor to our growth and success.” BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 4 For Mack, social media points to the public relations trend of being your own news outlet, in addition to working with outside news platforms. “Being your own content publisher is part of what is needed to up your game today—or be left out,” says Mack. “The great thing is that when you are forced to come up with that content, you are forced to find what your story is—you find out what you stand for and then tell it.” McKenzie agrees: “Content and engagement is king. Content must be timely and relevant. It’s a key part of what builds your reputation today. And, because social media is a 24/7 channel, we post often—though there is a balance to how often we post, because posting too often can turn people Content and engagement is king. Content must be timely and relevant. It’s a key part of what builds your reputation today. And, because social media is a 24/7 channel, we post often—though there is a balance to how often we post, because posting too often can turn people off. Engagement is critical, and effective content, timing and number of posts all play a role in success. Robin McKenzie Senior Vice President, Marketing & Communications Redwood CU off. Engagement is critical, and effective content, timing and number of posts all play a role in success.” Again, the key is remembering that public relations must integrate with other arms of the credit union. As Birch says, “It’s a matter of holding it all together—public relations, social media, marketing, financial services, etc. A communications program isn’t what P.R. does, or Marketing does, we as an institution do it.” “‘Crises’ are fortunately not frequent—but ‘incidents’ are,” says McKenzie. “For instance, a service complaint on social media is an incident, and one we deem important to have a timely and effective response. It’s crucial we have a plan for that, because our reputation and credibility are at stake. It can be tricky if a member posts a complaint after hours. Most credit unions are not staffed 24/7. We are diligent about monitoring and responding to ensure any issues are addressed “Incident” Communications— Not Crisis Communications immediately and effectively.” All credit unions have a business recovery program. As provides for a wide variety of scenarios. “Our plan includes financial institutions, all must be ready for events that would be extremely rare in any other type of business—such as an armed robbery. ORNL FCU has a crisis communications plan in place, and it a protocol for determining the extent of a crisis, designated spokespeople and chain of communication to different platforms and publics,” says Emert. “We have contingencies Yet, the credit unions we spoke with said that “crisis communications” is really not a very good word for handling—due to good planning—the “unexpected that is not so unexpected.” and messaging for data breaches, robberies, natural disasters, branch closures and other potential key risks. You need to be conscious of what’s around you. You need to update your plan frequently. And, you need to watch others and learn from others—what they did right and what they did wrong.” “Prepared messaging is part of business recovery planning,” says Birch. “Most crises don’t rise to the name—they are incidents—but need to be handled the same way. Incident communications is really regular blocking and tackling. A website can go down. Nobody’s hurt, nothing’s damaged, but people are affected and you need to communicate.” A crisis can have its upside, too, as Emert explains: “The data breaches that seemed to begin with Target in December 2013 gave us the opportunity to share with the community what we were doing to protect their accounts and what they can do to protect themselves.” BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 5 Sometimes routine business errors can come to the attention Fernandez notes that all credit union employees know to of members or the media. In such cases, “You need to route media inquiries to him. He will then either handle the be ready to communicate quickly—provide a complete spokesperson duties himself, or line up the appropriate explanation of what happened, and how you fixed it,” says subject matter expert, according to a chart/roster the credit Fernandez. “It is also important to provide your staff with union maintains. Fernandez provides talking points to the talking points—they’re often the last people you think of—so staff member prior to being interviewed. All the credit unions they can communicate effectively with members.” we spoke to follow these protocols, and Fernandez takes the additional—and not unusual—step of being present during all Don’t Forget Your Staff media interviews. That last point about staff is worth its own best practice Should credit unions accept all media inquiries? Emert notes, subhead. Communicating to staff is important—but public “You don’t have to accept every opportunity.” Still, “We can’t relations is a two-way form of communications. Staff also be picky with what type of media we are included in.” Again, needs to be heard. public relations is an integrated corporate function—if the “We are careful to keep in touch with our branches,” says Fernandez. “We don’t want to be guilty of running off and doing something without checking with them. We need their opportunity aligns with corporate goals, it should be accepted readily. Then the planning—already in place—kicks into a specific case of preparation. front line input. I take the ‘communication’ of ‘corporate ORNL FCU, Redwood CU and Navy Federal CU have all communications’ very seriously. We need to treat our performed media training for media spokespeople. As Mack colleagues as a ‘public’ as much as we do our members.” notes, “Cultivating your subject matter experts through media training is the next level of corporate storytelling. We Media Relations—Still a Core Function identify our SME’s and then help them hone their storytelling Public relations was originally thought of by many as “press training, training!” abilities. The key is to provide talking points and then training, agentry.” It has certainly progressed well beyond that, yet media relations—both handling inquiries from the press McKenzie is of a like mind: “We prepare talking points, and and proactively reaching out to the media—remains a core when the press deadline allows, we prepare our internal function of the practitioner. interviewees via mock interview sessions, followed by the live interview with the media.” The credit unions interviewed for this paper, in fact, have a surprising level of interaction with all forms of media, One important way to prepare for a media interview is to especially television requests to visit branches. “People in line “become familiar with the reporter, media outlet and relevant at a teller window make for good video when TV stations are past news coverage,” according to a “Media Training” paper doing an economic-based story,” says Fernandez. “They like prepared by Wetherhead Communications of Roswell, Georgia, to interview members at such times. We work with the media for the 2013 PRSA International Conference. McKenzie to help them speak with members if they are comfortable believes this should be a constant task of the public relations speaking with a reporter. Of course, we work with the media professional—not just when an interview is pending. “Build not to approach them prior to completing the transaction they relationships with the media,” says McKenzie. “They are came into the branch to do.” important people in your community. Don’t be afraid to reach out to reporters and editors; educate them about your business, get to know them and, because the news industry is very fluid these days, be ready to start all over with a new person when they move on.” BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 6 Clearly, the public relations professional cannot simply be a The opportunities here are as broad and diverse as the nation gatekeeper, waiting for the media to come beating a pathway in which these credit unions are based. to their doorstep. Outreach is critical—but how? Utah-based public relations consultant Michael Smart suggests at least the following key points in pitching the media: Rodriguez’s Security Service FCU does community outreach year-round though its Volunteer Corps program, among others. The program is made up of more than 800 GET ON THE MEDIA’S RADAR: Find key outlets that move your publics; find the right reporter within that outlet, and begin a relationship. employees, who continuously help community organizations DETERMINE WHAT TO PITCH: Create newsworthy angles. ORNL FCU supported MAKE THE PITCH: Make your story easy to cover; do the legwork for the reporter. (Remember “capability of audience”—the seventh C of the 7 C’s of Communication). Miracles” program APPLY UPDATED P.R. WRITING TECHNIQUES: Be brutally brief. (Remember what they told you about writing your resume—nobody wants to read your book.) CREATE COMPELLING CONTENT: • Offer a story people actually want to read. • Provide multimedia: Images, video if you have it. • Provide sources: Experts and “real people.” to feed families, build houses, serve military families and other activities. the 2014 “Shop for sponsored by CUNA and Credit Unions for Kids. Navy Federal CU focuses on the needs of military personnel and families, who spend long periods separated from one another. Children’s Miracle Network Hospitals Redwood CU has had a strong relationship with the Redwood Empire Food Bank. “Our partnership provides us mutually beneficial media opportunities, too,” says McKenzie. “For Finally, Emert reminds us not to forget the credit union trade example, we recently got called to be the featured company media as an important public. “The trades let our colleagues at the food bank when they were contacted by KGO-TV, know of our progressive, community-involved character,” says a San Francisco ABC affiliate, who wanted to do a live Emert. “They also let our colleagues in on possible ideas they broadcast there during Thanksgiving. We were able to have can pursue themselves—and of course, we can learn from our our team of volunteers featured on the broadcast, and we colleagues as well through the trades.” were interviewed about our relationship with REFB and our commitment to solving hunger issues in our community. It’s Unanimous—Community Involvement Is the Best P.R. Every credit union we spoke to is deeply involved in community outreach, and it plays a central role in each institution’s public relations program. So, the lesson is—don’t just write checks, find a way to truly partner with local nonprofits and community groups, which can include creating earned media stories and opportunities together.” Virginia CU is committed to being a leader of financial When asked for a single best practice, Rodriguez responded: “I would suggest focusing on community outreach. It’s probably the best and simplest way to promote your brand and establish your organization as a concerned corporate citizen. It’s also a great way to increase visibility and helps build a education in the Richmond area it serves. “We have a financial education director on our staff,” says Birch. “We are continually out in the community conducting financial literacy seminars, such as how to manage personal budgets. That has been very important to our credit union and our P.R.” positive corporate brand identity. After all, ‘People Helping People’ is the very core of the credit union movement.” BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 7 It’s all very logical, and fits perfectly with the second of the “7 C’s”: context (a program must square with reality). “We authentically made financial education for our community a top priority, and that has worked out very well for us,” says Birch. “It fits so neatly with our purpose, what we are about and supports those who we are trying to serve.” The credit union doesn’t stop there. It also supports its local CO-OP AS A RESOURCE In this survey of public relations best practices, there are at least two in which CO-OP Financial Services can function as a key resource for credit unions as they seek to “up their game today.” Specifically, CO-OP has programs that can help credit unions enhance their community involvement programs and address the need to communicate effectively to Millennials. Children’s Miracle Network Hospital—Children’s Hospital of Richmond at Virginia Commonwealth University. “Our employees’ support for the hospital is supplemented with a program tied to the success of the VCU Rams basketball teams,” says Birch. “We add to our support for every assist the Rams make. The program, called VACU Assists, is helping our community support initiatives get noticed.” Miracle Match by CO-OP During 2013, more than 150 credit unions participated in Miracle Match by CO-OP, raising $3 million for Children’s Miracle Network Hospitals, $1 million of which was matching funds from CO-OP. The credit union fundraisers benefited 98 different children’s Millennials—Part of the Total Picture, But Also a Unique Public Many of the best practices and initiatives described in this white paper incorporate outreach to the future of the credit union movement—the Millennial generation, consumers born after 1980. But this is a public that must also be addressed uniquely. hospitals in 34 states. More than 100 fundraisers were first-time events by the sponsoring credit union and nearly half of the participating credit unions—about 70—were new to CO-OP’s Miracle Match program. The 2014 program figures are expected to be similar to 2013. Credit unions interested in applying for match grants in 2015 may do so by visiting www.co-opfs.org/miracle-match. Navy Federal CU has invested in third-party research to better understand this consumer group. As Mack says, “We need to know where they are in their financial lives— particularly as Millennials make up a very large percentage of the military. We have been able to utilize this data in many different ways, including pitching stories, which has resulted in earned media.” “Empowering People. Amplifying Dreams” CO-OP’s “Empowering People. Amplifying Dreams” initiative is designed to help Millennials develop greater financial literacy, including education on credit unions. Empowering People. Amplifying Dreams is an integrated Emert has already acknowledged the importance of social media in reaching Millennials. Mobile communications is another platform commonly associated with this generation. The experience of Virginia CU in this area is a testimony to the need for “continuity and consistency” in communication. “When we initially launched mobile deposit ahead of other content marketing and social media campaign developed on behalf of CO-OP clients to help consumers—especially Millennials—better understand how credit unions empower individuals to achieve their financial goals. It is also intended as a resource for all credit unions—they are welcome to use it for their own outreach. financial institutions in our market, we pitched the story to The content from CO-OP’s Empowering People. Amplifying the media without much traction,” says Birch. “But later, the Dreams campaign focuses on the “how-to’s” of establishing a media did come back to us—they recognized it was a story. long-term, secure financial future. This includes education on So, outreach is important. It will come back to your benefit.” the products and services of credit unions as well as on the mission and values of the entire movement. BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 8 CREDIT UNION PUBLIC RELATIONS FOR A NEW CENTURY As described at the beginning, the origin of public relations goes back to the beginning of the last century. Here we are in the next century, and public relations seems to be hitting its stride at last in the credit union movement, whether it’s media relations, community outreach or government advocacy (an important element of the daily tasking of the practitioners at Virginia CU and ORNL FCU). A key asset of public relations is that it can develop meaningful content via news and feature stories in a wide variety of earned platforms. The credibility that comes with it is crucial for any credit union as it competes in the CO-OP provides content on its own platforms, including the campaign website and three consumer social media channels, as well as through editorial and advertising on digital channels managed by online publishers (such as bloggers) and business partners. The content is intended to be “portable”—available for repurposing or linking-to by these additional sources. The Empowering People. Amplifying Dreams website at financial services marketplace. So, what will public relations look like in the credit union industry going forward? Perhaps really not much different than in the past. As Emert says, “The best practice of all is to plan and be proactive. Be consistent in messaging. Be honest and transparent. That’s how you build trust—without trust we wouldn’t exist.” http://co-opcreditunions.org serves as the initiative’s content hub, and provides convenient access to the CO-OP Credit Unions Twitter feed—@innovatebanking—in addition to icons leading to Facebook and Tumblr. The website includes a wide variety of content for consumers considering their financial options, including a locator for credit unions, a growing library of “People Like You” testimonials from Millennial credit union members and a blog. About the Author Bill Prichard is Senior Manager, Public Relations and Corporate Communications, for CO-OP Financial Services, Rancho Cucamonga, California (www.co-opfs.org). Prichard holds the Accredited in Public Relations (APR) designation from PRSA, of which he has been a member since 1989. He is a former President of the Orange County (California) chapter of PRSA (2002), and a recipient of its highest honor, the Distinguished Service Award (2007). With CO-OP since 2009, Prichard can be reached at [email protected] and (800) 782-9042, ext. 3450. To learn more, visit www.co-opfs.org, email [email protected] or call 800.782.9042, option 2. BE THERE. BE MORE P u b lic Rela tio ns for C r edi t Un i on s / 9
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