Conversion Funnel is not about tricking your visitors to make a purchase faster nor is it about forcing them to make a decision.
The Conversion Funnel is there to help you guide your visitors towards solutions to their problems.
If you solve your visitors’ problems, they’ll become your customers.
Read on for the very easy to understand guide to using a Conversion Funnel!
- The Definition Of A Conversion Funnel
- The Steps Of The Conversion Funnel
- How To Increase Your Brand Awareness
- Conversion Funnel Optimization: Interest and Desire
- How To Increase Your Conversions In A Lead Funnel Or Online Marketing Funnel
- Set Up A Conversion Funnel For Your Website
- Use Remarketing To Optimize Your Conversion Funnel
- Conversion Funnel Best Practices – Final Tips And Tricks
- Recommended Reading: Articles And Guides
The Definition of Conversion Funnel
Even though you might be an experienced marketer or you find yourself at the beginning of the journey of becoming one, I feel somehow bound to write an official definition of Conversion Funnel.
“Conversion funnels help businesses clarify the best paths to getting a user to complete a sale.”
It’s important to note that a conversion funnel doesn’t necessarily apply only to an ecommerce website. Completing a contact form can be counted as a conversion, as well as downloading a PDF file or any other related action that the visitor can take. You’re in control and you decide what value each action has.
Now let’s think of it another way.
Imagine you’re walking through a shopping mall. You see a store and somehow it gets your attention. You decide to walk in and you look at different pieces of clothing.
You try a t-shirt, try a shirt and you eventually end up picking one up. Near the shirts shelf you see a tie and you suddenly remember that you need one, so you pick it up; afterward you go straight to the cash register.
This whole ecommerce conversion funnel has the exact same principles online.
First you see the store – you can relate this with Brand Awareness.
Then you go into the store – you can relate this with Interest.
You are browsing the t-shirts and shirt shelves – you can relate this with the Customer Experience and category or product page design, flowing through the website – here you should create another element called Desire.
And the last step is going to the cash register – you can think about this as the last step in the ecommerce funnel, completing the Conversion – the Check Out/Thank You page.
The Steps of the Conversion Funnel
Let’s look at each one, point by point.
Every new online business should start with a brand awareness campaign, especially for those who plan on launching an ecommerce website. You have to make people aware that someone new is out on the market.
A study carried out by the Seoul International Color Expo found that color goes so far as to increase brand recognition by up to 80%.
Brand awareness can be divided into two categories:
- Aided Awareness – occurs when, for example, you read a list of brands and express your familiarity towards one only after reading its name
- Top of mind awareness – occurs when someone needs to appoint a brand in a given product category and the first that comes to his mind is your brand
If for example, when we think of fast food category, the first that comes to mind is McDonald’s, that means that they do a good job in terms of creating brand awareness. We’re not talking subjectively whether we think it’s good or bad fast food. Just that it popped into our heads for some reason.
This concept however is not everything. In addition to brand awareness, which is certainly vital to a brand, there are two other concepts, namely “strategic brand awareness” and “brand preference” which are of major importance.
Strategic Awareness is the concept that refers to when someone not only recognizes a brand, but knows the characteristics that differentiate it from other brands too, in a positive way. This happens when the brand managed to differentiate itself in the minds of consumers.
Brand Preference, on the other hand, is the concept that refers to consumers who choose to buy the brand versus the competition. It’s the kind of behaviour that we all wish to in still in our consumers as one of its direct consequences is to increase sales. When someone chooses to buy the brand that you promote, it shows that the brand message was received positively by consumers, they understand the quality of the brand and they connect with it emotionally.
Although brand awareness covers both online and the offline, we have 4 free tools and services for to help us see how much is known about our brand.
Google Analytics – this helps you understand how users got to your website, what keywords they used and what their engagement was like;
Facebook Insights – if you have a Facebook page for your company or brand, it helps you understand how many people see the content you share; it also provides feedback for content you are publishing;
Twitter – the advanced search feature makes it easy for you to keep an eye out for the competition; searching your own brand also provides insightful answers;
LinkedIn – where you find out who would like to work in your company;
Like any other concept implemented brand awareness needs assessment too. This is done by several criteria:
- Brand image in the minds of consumers;
- Consumers degree of confidence in the brand;
- The popularity of your brand;
- Elements associated with your brand and the loyalty level.
Ask simple targeted questions and find out if people would recommend your company to friends and colleagues.
These can be measured using Customer Surveys, the Net Promoter Score and repeat conversions from customers. In terms of the metrics driving your business forwards, repeat customers are a great objective.
Since top of the funnel tactics are the ones that bring in your potential customers, it’s time to learn how to make your brand better known.
How to Increase Your Brand’s Awareness
There are multiple ways in which you can increase your brand awareness. Let’s look at the ones with the biggest impact on your business.
Create A Referral Program
Word-of-mouth might be a very powerful tool for you. Even if we are speaking about an established online business, the principles are the same.
Imagine you’re browsing through an ecommerce website and you need a new mouse. We are speaking about technology for the moment, but for every piece of interest there are online communities where people talk and exchange ideas and tips.
You buy the mouse and now the ecommerce has your e-mail address. What if you receive a Thank You notification email that says if you recommend the store to a friend you get a 20% discount on any product you consider buying next, if your friend is making a purchase?
Now let’s look at things from the ecommerce website owner. He has received a sale, but without encouragement or incentives, that sale may be the only one that client will make. The email address is the gateway to not only increased sales, but also the possibility of growth through user referrals.
Referral programs usually work with a user inviting his friends and acquaintances into the system. This key element means that the user trusts the product or service. Dropbox, Lyft and Airbnb are great examples of this.
Let’s take a look at each one.
The online storage company Dropbox allowed you to invite your friends for more storage. Not only did you get more, but your invited friend also. It was a brilliant tactic that made the service a household name.
The Uber competitor, Lyft also provides a referral program for its users. If you’re in the platform, you can use your unique code to invite new passengers or new drivers. Depending on the need, the city or the type of user invited, you could make anywhere from $10 up to $750 per referral.
Travel retailer Airbnb is capitalizing on a trend that is already going on: people recommending travel locations to their friends. Their referral programs gives both parties $25 to spend on the platform.
You can think about creating and implementing such a system yourself. But when there are dedicated tools out there, why bother? Here are a few to get started:
Use Affiliate Marketing
Affiliate Marketing exists way before the birth of World Wide Web and we can still find examples of it being applied in offline scenarios.
How does it work?
You simply offer a percent of the sale to the person that recommends your shop and drives a conversion.
Let’s say that we have an ecommerce website selling t-shirts for both men and women.
We can apply for different affiliate programs and the program makes the connection between Us (the advertiser) and the Publisher (the bloggers or content creators). Every time the blogger generates a sale he will receive a commission for that given sale.
We can set up the commission rate and the cookie time – all the affiliate marketing programs rely on cookies to count the sales and commissions.
How can this help you? First of all, it can increase your sales and second – your products will be spread across blogs and websites. People are going to write about your products and your brand, which will increase your awareness.
One of the masters of affiliate marketing is Pat Flynn. If you look over his Income Reports, you’ll notice that a large chunk of this income comes from Affiliate sales. He uses his influence and expertise to create articles, videos and guides about the products that he uses and recommends: AWeber, BlueHost, SumoMe and many others.
Readers find his content online, click on the affiliate links and purchase something. The company (BlueHost for example) pays Pat a commission for bringing in new customers. Everyone wins!
Recommended apps and services for Affiliate Marketing:
Design and Distribute Infographics
They are easy to read, digest and understand. If you create them right, they’ll also be informative and easy to share.
The chances of an infographic to be shared on social media are far higher than a blog post, since visual mediums don’t take as much time to get into. Plus, most devices display graphics in a flattering manner. Checkout this infographic about why infographics are quick to create brand awareness:
Infographics aren’t limited to marketing. They’re widely used in business, health, technology and culture, to name but a few areas of interest.
Nowadays, they don’t require a dedicated designer to create. Anyone can gather the data and create an infographic they can distribute, in a matter of minutes.
Here are a few tools to use for infographic design:
Video content is one of most appreciated types of content –It’s self-contained, which makes it easy to distribute without any additional commentary or details. Whether it’s for communication, sales or marketing, video seems to rule the world.
Think about it– what would you prefer? Reading a 2000+ words post about How To Grill The Perfect Burger or would you choose to watch a 5-minute video with and expert actually showing you how to do it?
You have to pay attention. If you decide to push out video content, make sure you do it right from the start. Follow your competition and see if they are offering video content; read the comments section – there you will find golden feedback nuggets – you and your competition are targeting the same audience.
So let’s say that you have that going for you – somebody else tested the market before you, all you have to do is reap the rewards.
Zappos is a firm believer in video. The online retailer created hundreds of product videos in 2014. The results? Increase in conversions and sales by 8% to 30% on the products with videos. This gives the product more dimensions and you can see them being worn on a real person, which increases trust.
Electronic retailer StacksAndStacks also experimented with video in product pages. They found that visitors viewing a video were 114% more likely to purchase, than those who didn’t.
The ski equipment retailer Simply Piste created simple videos to demonstrate the products to potential buyers. One of the videos contained a backpack – showing how many zippers, pockets, how you can use it and how much it can carry. Their conversion rates increased by up to 25% on the pages that included product videos.
Search Engine Optimization
Bottom line is, SEO will help you in the long run – if done right. Don’t use black hat techniques, as they’ll only improve your rankings and traffic for a short while.
You can start reading and learning about SEO, but I assume since you’re starting a new online business, your main goal is managing the business itself. You’re handling contracts and customers, not keywords and rankings. Your main focus should be bringing in more conversions, so you should leave other areas to experts.
So you can “call a guy” – contact a respectable agency that’s doing SEO. You have to pay attention who you are working with, because most agencies are using old techniques and you might find yourself throwing your money out of the window.
For better understanding of SEO concepts and techniques, I recommend reading this basic Google guide.
Conversion Funnel Optimization: Interest And Desire
Assuming that you already know who your target is, keep in mind that you still have to peak their interest. Here’s one of the best pieces of advice:
“Consumers have to believe that they want and need the product being sold, so advertise the solution, not the problem itself.”
Subliminal messaging has even been shown to influence how much we are willing to pay for a product. Recently, two researchers Piotr Winkielman of the University of California San Diego and Kent C. Berridge of the University of Michigan demonstrated that brief exposure to images of smiling or frowning faces for 16 milliseconds – not long enough for volunteers to consciously register the image or identify the emotion – affected the amount of money test subjects were willing to pay for a product.
To fully engage us emotionally, companies are discovering they’d be better off not just inundating us with logos, but pumping fragrances into our nostrils and music into our ears as well.
But what about the online experience that a customer might have? How do you get to tickle their interest and raise their desire?
As you might know when a visitor lands on your page, his eyes are usually moving from the left top corner continuing to scan the entire page, unconsciously looking for signs that might trigger his interest. Like different words, colours or experiences that are illustrated in pictures. And since all customers are different, you can be sure that each customer has specific preferences.
We can think of “creating desire” as a two way bridge – first you have to create desire through your advertising and then continue that feeling on your website.
Let’s take for example this ad as we also talked about video advertising for increasing your brand awareness and drive new customers:
Ok now, snap out of it, I bet you stood still all those 20 seconds.
What do we see? A simple 20-second ad with catchy music, varied colours and good looking food that most definitely tastes amazing.
Did you see that? I automatically assumed that the food tastes great. Even though I can’t smell it, touch it or taste it.
Most people skip all the ads on YouTube and most of the people will close the pop-ups, they find them annoying. But what if your ads were different, what if you ads weren’t boring or annoying?
Most of the advertising campaigns fail because they don’t target the right audience at the right time. They interrupt people, instead of providing solutions to the customers’ needs and desires.
But take a look at this Geiko genius ad:
In no more than 5 seconds you heard the brand’s name. Then most likely you chose to not skip the ad because it’s interesting.
Shopper Approved set out to understand why consumers purchase online, rather than through brick and mortar stores. Their survey included 25,660 individuals who were asked “What key factor influenced you to buy online instead of locally?” immediately after they purchased from 207 online retailers in a variety of industries.
The following factors came out tops in terms of encouraging online purchases:
- 4% said larger selection
- 25% said better pricing
- 7% said more convenient
- 2% said time savings
- 6% said easy to compare
- 3% said no sales tax
Be sure to expose all the possible benefits that your customers might get if they are buying from you. In order for you to do that, you have to plan your marketing efforts and try to predict your outcomes.
Since there’s no need to reinvent the wheel, we recommend using a tried and tested planning system called RACE. The 4 Digital Marketing stages (Reach, Act, Convert, Engage) match up with the users’ buyer stages (Exploration, Decision Making, Purchase, Advocacy
If we use SmartInsight’s RACE model (Reach, Act, Convert, Engage), we have a different way of understanding the funnel.
- Reach– tactics are all the elements that drive traffic to a customer’s website (SEO, PPC, contests, referrals, etc.)
- Act- represents all the micro-conversions from your users (visit a specific page, subscribe to your newsletter, etc.)
- Convert- is assumed to be the final step in the funnel, but it’s second to last (this usually means a cash transaction is made or a very important lead is created)
- Engage- is the final step in this version of the Conversion Funnel (current customers bring in more buyers, for free or in exchange for bonuses – discounts or money)
How to Increase Your Conversions in a Lead Funnel or Online Marketing Funnel
Going to the cash register – you can think about this as the last step in completing the conversion – the Check Out/Thank You page. For your visitors to do that, they have to trust you, your store and your products. Or at least be curious enough to try them.
Here are the 7 basic steps to increase the trust of an online store and increase your sales.
Create 360 Degree Presentations of Your Products
360-degree presentations are probably one of the first innovations that improved product pages. This is less expensive to create than video presentation and many prefer for reasons of cost. Golfsmith implemented 360 degree view for some products and found that those with 360 degree view had up to 30% more conversions than those who didn’t
Film Video Presentation of Your Products
While many industries prefer 360 presentations, fashion-oriented presentations choose the video alternative. Most have a simple scroll of a model wearing the product. And really that’s all you need to make a strong impact. Clean, high-quality video. Adding video within your website means the customer can have a more attractive visual representation of your products, right next to the Add to cart button)
Implement Size Guide
Size is the main problem in purchasing online and there are as many brands as there are size interpretations. ASOS takes a different approach for their products and integrates Virtusize. This is a tool that promises to reduce the rate of product returns due to inappropriate size by 50% and 20% of users who use it decide to buy.
Since not all clothes fit the same, it’s crucial for a fashion store to explain to customers how their products are measured. A size guide or measurement chart is a simple way to get rid of size concerns among website visitors.
Gather and Show Feedback on Size and Quality Buyers
A Size Guide measuring tool that will help you decide easier is pretty useful. But it is more useful to solicit feedback from those who bought. A buyer who provides details about the size and suitability is more credible than any tool. Some shops chose to collect data from various buyers and present them as best they can.
Show Photos of The Product Directly From Buyers
Feedback is useful, details about size are also useful, but a picture of the product on the buyer makes all the difference. Betabrand rewards shoppers who make product pictures and publish them on the platform.
By far the store that profits the most is Modcloth. Some products have hundreds of reviews and dozens of photos from clients, making new visitors trust the shop and be interested in the products.
Insert A Virtual Dressing Room
Virtusize is a good tool for global coverage. The dressing room should allow you to order two items of different sizes and then you can decide after trying them on which one you want to keep.
Implement Quick View on Similar Products
Similar products are offered in most shops in the idea of cross- or up-selling. But very few choose not to bump the visitor on different pages of a product and provide a quick view.
AE offers one of the most interesting views. In the window that opens you can see everything you need. The quick view window is a full shopping experience in a popup, with all the info you need to make a purchasing decision. So the visitor leaves the product page only when he is sure the product is just not what he wants or likes.
Set up A Conversion Funnel For Your Website
Before you set one up, you need to understand and visualize it. Why are conversion funnels important?
The very first point of a Conversion Funnel is to help you understand your customers’ behaviour. Unfortunately, for off-line stores that’s a pretty hard task to do.
What could you do? Set up cameras and watch the recordings as the crowd is walking through the store? Hire people that will stand tall and ask people questions like: “Hello, how’s your shopping going?” Well, that would be weird and uncomfortable.
Lucky for you, you can do that for your ecommerce store quite easily.
Understanding how your potential customers are interacting with your store is one of the most efficient methods for increasing your sales. You could also refer to this as your “checkout conversion funnel”.
Understand your site visitor types and you’ll be able to offer information for each of them .To implement a Conversion Funnel, we will use 2 of the best conversion funnel tools: TruConversion and Google Analytics.
Create the Funnel in TruConversion
Once you’ve installed your tracking code, click on Funnels in the menu to your left.
You need to give your Funnel a name; you can use something like “Conversion” or “Webinar Registrations From Facebook Ads”.
Create The Funnel Steps In TruConversion
The steps in your funnel are how the visitor will get from beginning to your success page. Give each one a name, like “Landing Page” or “Homepage” and “Success Page” or “Conversion”. The first page will be counted as Step 1 and the final page will be the last step, the conversion page.
Feel free to add as many steps as you think are necessary. Homepage -> Product Page -> Cart -> Conversion is the most basic of funnels. If it suits your website, use that.
Activate the Funnel In TruConversion
Once you’ve set all your steps, you can choose to activate the funnel now or at a specific date/time. You can also have an email notification sent to you once the funnel is complete. Clicking the “Create Funnel” button will start monitoring the steps you’ve defined earlier.
View Your Funnel Results In TruConversion
Once your conversion funnel tracking is active in TruConversion, you’ll start seeing data coming in. The conversion funnel metrics used are related to Sessions, Conversions and Conversion Rate. You’ll also see where users dropped off, meaning a page that isn’t optimized to push them further down the funnel.
First Of All You Have To Set Up A Goal In Google Analytics
Let’s suppose that you have an ecommerce website that is selling bikes and accessories for bikes.
Setting up a conversion funnel will help you understand how your visitors will flow through your website pages and why they are leaving or why they are converting.
Go to your Google Analytics property and click ADMIN on the top of the page.
In the right side of the page click on GOALS and then click NEW GOAL.
You should click on CUSTOM and then proceed with the naming of the GOAL.
Choose a representative name so you’ll remember it when you’re browsing through the data.
Your destination should be “Equals to” and in the blank box you are going to write the last page a visitor sees when making a purchase, the “Thank You” page – /thank-you (or whatever you have it set up as, on your website).
Setting up The Conversion Funnel Itself in Google Analytics
Right before saving the Goal you can set up your Funnel too, simply by switching the Funnel button ON.
Then all you have to do is simply fill the Name and the Screen/Page – name them exactly so you won’t get stuck in the data later on – in the Screen/Page you’ll paste each URL that a visitor will go through until he gets to the final stage, the Thank-You page.
Understanding the Data You Are Looking At In Google Analytics
“A conversion funnel is the term that describes the steps in a consumer’s journey to purchasing an item from an ecommerce website. The shape of a funnel represents the gradual decline in the number of customers who reach each step. Not all site visitors continue through to making a purchase.”
In our given case we have X steps set up in the conversion funnel until the final step is achieved – the purchase.
Looking at the data we will realize the importance of each step and we will see what causes the discouragement of our visitors to convert.
Many of your visitors are going to abandon their carts or exit the Conversion Funnel before making a purchase. You don’t have to feel discouraged. You should find ways to push them into another conversion funnel. For example, try to increase the number of your newsletter subscribers by giving away freebies.
Understanding Why Some Visitors Are Not Converting
Before starting the optimization strategy of the cart and the marketing strategy for an online store, we should analyse the conditions in which visitors tend to not become customers.
There are many online stores owners who wonder “Why we don’t convert enough of our visitors?” Many think that sending traffic to your site is enough. Assuming the site is somehow optimized and that prices are a buying opportunity factor, we should do a small analysis of what happens once visitors are in the cart.
First, you should review the report in which we can compare the returning visitors with the new visitors. Many online shops are investing more money in bringing new visitors thinking that new visitors equal more sales, but they forget about the returning ones.
How Are New Visitors Compared To The Others, In Google Analytics?
The easiest way to see the type of site visitors is to use Google Analytics Advanced Segments which provides the Single Visit Users vs Returning Users report. That means you will find the number of visitors with only one visit and those with more than one visit.
All of Advanced Segments can create segments with visitors who bought from the first visit and those who bought after they returned to the site. Ideally, in the minds of many, is that visitors who arrive on site the first time buy on their first visit.
New vs. Returning buy rate
New visitors need more visits to generate sales. You should take into account the opportunity to buy a product on the first visit, the need and the determination to buy a product at the first visit.
How Many Abandoned the Cart And Never Returned?
Depending on the campaigns that you deploy, a number of visitors may come back in the cart. Remarketing, newsletter and PPC campaigns have the ability to return the visitors to the cart so they can complete their order.
In a few small steps you will find out what happens in the cart, who, what and possibly why. You can use segments to see traffic sources that generate sales, those who tend to not perform as they should, you can see the cities that consistently do not perform, etc.
The next thing you need to do is analyse why people do not convert, improve the performance of the cart, and the path to that point, differentiate visitors between the new and the returning visitors.
Use Remarketing To Optimize Your Conversion Funnel
What is remarketing? What are campaigns for retargeting?
Remarketing and retargeting are a form of promotion through which we can address the same people who have already accessed the site. Once a user visits his website, he’s “marked” using a cookie, which allows you to show targeted remarketing ads on other websites he’ll visit, after he exists yours.
For example, we can set remarketing campaigns with Google AdWords Display Advertising or promotional campaigns with Facebook Ads.
How do remarketing campaigns work?
Before running a remarketing campaign you need to set a remarketing list. Remarketing lists may include people who visited every page in the site or just visited a specific page of the site.
When a visitor lands on a page of the site, he receives via a cookie, his own unique label identifier and so the visitor can be included into a remarketing list. Subsequently, this list of people who have accessed the site can be used to target remarketing advertising campaigns. This means that we can create campaigns that address specifically to those who have already visited the site.
Retargeting is an opportunity to remind your website visitors about your offers and try to convince them to return to your website.
As people in the remarketing list have already shown interest in your site/offer, there are better chances to address the right ads, promoting relevant products and offers for example, according to sections of the site that they have accessed and the interest they have shown when they visited your website.
Why should you set up remarketing campaigns to promote your website?
- Keep in touch with your visitors
According to PageTraffic.com, 96% leave without making a conversion (order online, filling the contact form, newsletter subscription), 49% of internet users visiting a site tend to come back 2-4 times before making a purchase/order, and 70% of users abandon shopping carts without completing an order.The remarketing campaigns can track visitors who have already visited the site while they browse other websites and you can send them personalized messages, increasing the chances of them returning to your website.
- Increase your brand awareness and brand image43% of companies use remarketing campaigns for brand awareness and image recognition for building site/business.In addition, you can address to your prospective clients at every stage of the buying process: research, expressions of interest or post-purchase product/service.
- Get new customers with remarketing – increase the site conversion rate56% of companies use remarketing campaigns to get customers. Remarketing helps you reclaim the site’s traffic by promoting your services/products on various other sites such as news sites, blogs, content sites.For a potential customer, viewing ads about the product/service that he has already shown interest in, has a great influence in the final decision of purchase.
Conversion Funnel Best Practices – Final Tips And Tricks
- Know Your Audience. Start with a Customer Persona. Take the time to talk to the people who purchase products or services on your website. Understand their pain points, ask them about their website experience and try to gain insights. Bring that data back into your Conversion Funnel and optimize it so that it makes sense for your customers.
- Track Multiple Funnels. When the customers is on your website, he’s in your court. You control what he should look at and the actions he should take. On the other hand, users have a mind of their own and won’t blindly follow your guides. Therefore, you should always be prepared with multiple backup plans. That means you should have a Conversion Funnel for sales, a Conversion Funnel for email subscribers and so on. Not only will this help you track multiple actions, but you’ll have a much better chance of conversions, once you realize that a user is not limited to just one Conversion Funnel – he can skip or jump for one to the other.
- Think In Terms Of Improvement, Not Perfection. Don’t try to create the perfect Conversion Funnel from the get go. Learn from what your users are telling you (through actions, survey and NPS answers, etc.). Make improvements along the way and help them find a faster solution to their problem. It’s a process, so treat it like one, not like an action you have to take once a month or year.
- Set Up Your Funnel Early On. Don’t wait until your website design is finished. If the pages are there, the initial development is done and you’ve got a wireframe or mockup online, start tracking users. Even if it’s just you and your team in the beginning, think about how real customers will navigate your website and make it easier for them to reach the Thank You page.
- Bring Your Potential Customers Back Through Any Means. Remarketing doesn’t start and end with paid ads. It also extends to the email marketing. Once you’ve captured a visitor’s email address, another point of contact has been formed. That means you can track whether or not he’s converting on your website and send him a discount voucher, if he purchases the product in his cart in the next 30 minutes, for example.
Recommended Reading: Articles And Guides
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